All homeowners are interested in saving money, and if you upgraded or are planning to buy a new system, you may qualify for a tax credit for your air conditioner. Qualifying consumers can get a credit of $300.00 on their return if they install a system in their principal residence between January 1. 2011 and December 31, 2013.
Qualifying Systems for the Tax Credit
To qualify for the tax credit, you would need to install a Seasonal Energy Efficiency Ratio (SEER) =16 & EER (Energy Efficiency Ratio) = 12. The SEER is a term used to measure the air conditioner’s efficiency. The higher the number, the more efficient the system.
The Energy Efficiency Ratio (EER) measures how efficiently the cooling system operates when the temperature outside is at a certain level (95 degrees Fahrenheit). The higher the rating the more efficient the system. Both of these numbers are included in the Energy Star specification for air conditioners. Each one indicates the efficiency of the product under different operating modes. The SEER rating will give you an idea of the air conditioner’s efficiency over the entire season, and the rating reflects its energy efficiency during peak daytime periods. You will want to consider both numbers when making your choice about a product.
How to Find a Qualified Model Air Conditioner
The best way to find a qualified model air conditioner eligible for the tax credit is to ask your HVAC (heating ventilation and air conditioning) contractor for advice. Be sure to get the Manufacturer’s Certification Statement for the equipment you want to buy to verify tax credit eligibility. You should also be able to find this information on the manufacturer’s website. When you file your income tax return, you would submit Form 5695 to claim the credit.