HVAC equipment isn’t cheap. And neither is the electricity and natural gas required to keep your furnace, air conditioner, and water heater operating. There are ways to be budget-conscious and still keep your house comfortably heated and cooled--all while improving your home's energy efficiency--but, sometimes you've got to spend some money to save money.
By Kelly Wingard
December 31, 1969
Purchasing new energy-efficient HVAC equipment falls into this category. But, the IRS is prepared to pitch in on the cost of updating your HVAC equipment if you act fast. For the remainder of 2007, you can receive a tax credit for purchasing a qualified new central air conditioning unit, furnace or boiler, and certain water heaters.
HVAC Specifications for Energy Credit
You can’t go out and buy just any old furnace, air conditioner, or water heater to qualify for the credit. Sometimes, even equipment with an Energy Star logo doesn't qualify. To get a tax rebate, your new HVAC purchase must meet the following stringent energy efficiency guidelines:
* Overall dollar limitations apply by category, which could limit your actual savings
Other Pesky IRS Details
To further qualify for the credit, your HVAC equipment must be new
and installed in a home that you own in the U.S.
as your personal residence
SourcesInternal Revenue ServiceEnergy Star
About the Author
Kelly Wingard is a homeowner with 30 years of budget-minded decorating and remodeling experience.
*Before you apply any of the advice described on the Hip-home.com website, you should consider if the advice is safe and suitable for your individual home situation and consult experts as necessary to evaluate the suitability for your circumstances.