If you’ve been considering an A/C purchase, this summer could be an advantageous time, since the federal government is offering tax credits for homeowners who install high efficiency cooling systems in existing homes. The credit lets you deduct 10 percent of the cost of a new central air conditioner or a heat pump, and has a cap of $300.
The credit falls under the 25C program and lasts through December 31, 2013. It will help offset the cost of a new system in the short term and in the long term, you’ll realize the benefits of an A/C upgrade through greater indoor comfort and lower electric bills. Our region has some of the highest electricity rates in the U.S. and the qualifying systems must have SEER (seasonal energy efficiency ratio) ratings from 14 to 16, depending on the kind you choose.
The minimum SEER for cooling systems currently stands at 13 and each increase in the SEER indicates the equipment uses 10 percent less electricity under controlled conditions. How much you could save by making an A/C purchase that meets the 25C requirements depends on the efficiency and condition of your current equipment.
If your current air conditioner or heat pump is more than 15 years old, you could realize monthly energy savings of 20 percent or more. Besides age, these symptoms also signal it could be time to make a replacement:
- Some rooms are uncomfortably warm.
- The air conditioner is noisy.
- Your current system needs frequent repairs.
- It uses R-22 refrigerant (also known as Freon) and needs frequent filling.
- The indoor humidity is high;
- Excessive dust collects near the register vents.
With the exception of R-22, all these issues point to an aging system that’s losing efficiency. R-22 is currently being phased out on a global level and its price is climbing steeply. New equipment uses environmentally friendly, inexpensive and more efficient refrigerant.
If you’re considering an A/C purchase and would like more information on the tax credits, contact Around the Clock Heating and Air Conditioning. We’ve provided trusted HVAC services for greater Los Angeles since 1967.
Our goal is to help educate our customers in Los Angeles, North Hollywood and surrounding areas about energy and home comfort issues (specific to HVAC systems). For more information about tax credits and other HVAC topics, download our free Home Comfort Resource guide.
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