In January as part of the “fiscal cliff” deal, energy efficiency tax credits that expired in December 2011 were reinstated and made retroactive to the day they expired; now manufacturers and utility companies have joined the government and heating/cooling companies in offering incentives to homeowners for upgrading to high-efficiency systems. There’s never been a better time to upgrade your existing system.

The tax credits that the government is offering include:

  1. Central air conditioners,  up to $300 credit
  2. Electric heat pumps, up to $300 credit
  3. Furnaces, up to $150 credit
  4. Boilers, up to $150 credit
  5. Water heaters, up to $300 credit
  6. Advanced main air circulating fans, up to $50 credit.

You’ll want to work with your heating and cooling specialist to ensure that you are installing equipment that qualifies for the tax credit; there are very specific guidelines for the efficiency rating of equipment that is installed.  If you do not install the correct equipment, you will not receive the tax credits.

In addition to the government’s tax credits, homeowners can now take advantage of these additional incentives:

  • Carrier Cool Cash on qualifying high efficiency equipment, up to $1350
  • Advantage Utility Rebate of up to $900
  • Recycling Rewards of up to $500
  • A.J. Perri is offering special financing with approved credit; talk to your technician for details
  • No down payment may be required; talk to your technician for details

High-efficiency equipment can lower your utility bill by as much as 35%, so in addition to the tax credits and rebates you will receive up-front, your savings will continue for the life of your system.  You’ll also be reducing your home’s carbon footprint. 

While your current air conditioner, furnace, boiler, heat pump, or water heater may be “just fine for now,” if it’s nearing the end of its life cycle, has needed repairs in the past few years, or has a low efficiency rating, it may be time to consider upgrading.  But don’t wait too long; any Carrier equipment must be installed by February 28 to receive the rebates. Advantage Utility Rebates can end at any time, and the tax credit for any equipment ends on December 31.