Can I get a tax credit for my new heat pump?

April 08, 2020

For most homeowners, there always seems to be a long list of home improvement to-do’s that they would like to get done or new ideas they’d like to try. While several may not be necessities, purchasing a new heat pump is a project that could be vital to keeping your home comfortable during the colder months in Cottonwood .

Buying a new heat pump is a large investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a little daunting at first. The good news is that when you pick a new energy-efficient heat pump, you could be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to obtain the tax credit, you must buy a heat pump that has received the ENERGY STAR label. When shopping for heat pumps, watch for types with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency heat pump.

At Connolly Electric & Mechanical, our experts help you choose a solution that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm the heat pump you select has the following requirements.

For Split Systems:

  • Heating Seasonal Performance Factor (HSPF): 8.5 or higher
  • Energy Efficiency Ratio (EER): 12.5 or higher
  • Seasonal Energy Efficiency Ratio (SEER): 15 or higher

 

For Package Systems:

  • HSPF: 8 or higher
  • EER: 12 or higher
  • SEER: 14 or higher

 

Qualifying for the tax credit won’t be the only savings you’ll observe when you get a new high-efficiency heat pump. Several of the most efficient models can save you hundreds of dollars on your energy bills during the year. And the family will also have more confidence in your HVAC system to help your home stay at just the right temp.

If you think of questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency heat pump, give our experts at Connolly Electric & Mechanical a call at 928-244-8840. You could also visit ENERGY STAR or reach out to your local utility organization if you have questions about other eligible home products.