Tax Credits On Ac & Heat Pumps

 You must have a clear idea about what is tax credit before delving deep into the topic. A tax credit is subtracted from the amount of tax that you owe to your government. Credits are claimed when you file tax for the previous year. So, in case you made a purchase in the year 2014 you will be claiming your tax in the year 2015. It is basically provided to consumers on heating and cooling units or other energy improvement units. The appliances for which you can get a tax credit include the following.

1.  Biomass stoves

2.  HVAC units that include
        • Advanced main air circulating fan
        • Air-source heat pump
        • Central air conditioning
        • Gas, propane, or oil hot water boiler
        • Natural gas, propane, or oil furnace

3.  Insulation
4.  Roofs
5.  Water heaters
6.  Windows and doors

Some of the units that are eligible for tax credits in the coming year include

1.  Geothermal heat pumps
2.  Small residential wind turbines
3.  Solar energy systems
4.  Fuel cells

 Mostly it has been seen that Energy Star Products are eligible for tax credits. Hence, it is recommended to buy ACs and heat pumps which has more number of stars in order to receive more benefit from the government. The basic principle behind these tax credits is that government encourages consumers to buy energy efficient products so that there is lesser carbon footprint on the globe. However, when you are buying either air conditioners or heat pumps it is suggested that you do not rely on contractors solely who claim that their products are eligible for tax credits. Rather, try to find out from genuine sources like websites whether your product qualifies for tax credit. Keep an eye on the energy ratings.

 However, the tax credits are different for different states in the US.

Last but not the least, it is recommended that little research is recommended before you finalize on buying an air conditioner or a heat pump. In fact, it will help you save a lot of money on your utility bills.