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

For many families, there typically seems to be a lengthy list of home projects that they would like to achieve or new ideas they’d like to do. While a few may not be required, getting a new heat pump is an example of a job that could be critical to keeping your indoor space comfortable through the colder months in Buellton.

Purchasing a new heat pump is a great investment. You’ll absolutely recognize the return-on-investment on your indoor comfort in addition to your monthly bills, but it could be a bit daunting at first. The good news is that when you buy a new energy-efficient heat pump, you could be qualified 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, look for products with the ENERGY STAR rating so you can be sure you’re getting a high-efficiency heat pump.

At Allstar Heating & Air Conditioning, our team will help you choose a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to confirm the heat pump you choose 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

 

This tax credit is not going to be the only savings you’ll receive when you buy a new high-efficiency heat pump. Some of the most efficient models can save you hundreds of dollars on your utility costs throughout the year. And you’ll also have more confidence in your HVAC system to help your home stay at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by installing a new high-efficiency heat pump, give our pros at Allstar Heating & Air Conditioning a call at 805-242-9638. You could also visit ENERGY STAR or reach out to your local utility company if you have questions about other eligible home products.

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