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Crawl space encapsulation systems, provided they meet government
requirements, could be eligible for a great tax credit! Anyone in the
market for a heat pump, furnace, or air conditioning system could also
be eligible for up to a $1,500 tax credit through the end of 2010.
After the original tax credit expired at the end of 2007, it was
brought back as part of the Emergency Economic Stabilization Act of
2008, something then-President Bush signed back in October 2008. And
although a special rebate on certain high efficiency furnaces and
boilers installed offered through the state of Indiana expired at the
end of April 2009, there is still time to take advantage of other state
and federal tax credit incentive programs. Indiana offers a tax credit
to individuals and small businesses for the costs associated with
purchasing EnergyStar-qualified air conditioners, furnaces, programmable
thermostats and water heaters (falling under the umbrella term of
heating and cooling equipment). EnergyStar is a government-backed
program aimed at helping businesses and individuals protect the
environment through better energy efficiency. The energy tax credit
offered by Indiana can be claimed against either the state income tax,
the insurance premium tax, or financial institutions tax. The amount of
the credit is set at 20 percent of the expenses for qualified heating
and cooling equipment, up to $100 for a taxable year. Part of the
American Recovery and Reinvestment Act (Recovery Act), enacted earlier
in 2009 was to expanded two home energy tax credits: the non-business
energy property credit and the residential energy efficient property
credit. For more information, log on to www.recovery.gov.
Some local utility companies have also contributed their own
incentive programs. The SmartSaver Program offered through Duke
Energy offers rebates for certain improvements made to a home's energy
efficiency (see Comparing Apples to Apples below). Heat pumps and air
conditioners with a SEER of 14 or greater that include an ECM fan motor,
or geothermal heat pumps with an EER of 10.5 or greater and an ECM fan
motor qualify for a $200 rebate. That offer is valid for any existing
Duke Energy residential, single-family home in Indiana. For more
information, log on to duke-energy.com. The site offers a personalized
energy report calculator, an estimated SmartSaver Savings Report, and a
Heating Costs and Comparisons chart.
Comparing Apples to Apples
When comparing heating and cooling products, terms to look out for
include:
- SEER (Seasonal Energy-Efficiency Ratio). This is analogous to the
miles per gallon rating on an automobile: The higher the SEER, the more
energy efficient the unit.
- EER: (Energy Efficiency Ratio) is the ratio of the cooling capacity
of an air conditioner in British Thermal Units (BTUs) per hour, to the
total electrical input in watts under specific test conditions.
- EF (Energy Factor) shows a water heater's overall energy efficiency,
based on the amount of heated water furnished per unit of fuel used
over a typical day.
Some utility rebate programs go a step further and stipulate that a
heat pump or air conditioner feature an Electronically Commutated Motor
(ECM) -- a high efficiency, brushless, direct current motor for fans.
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