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Tax Credit Consulting: Energy Efficient Air Conditioners Hobbs NM

The government often tries to influence our behavior through taxes. The tax credit for new installation of air conditioning systems that are energy efficient is one example.

Charles C. Kretek
(505) 544-3361
Po Box 1559
Deming, NM
 
Justin B. Lea
-57583772
224 Cruz Alta, Suite G
Taos, NM
Specialties
Criminal Defense, Land Use & Zoning, Contracts, Energy
Education
Marquette University Law School
State Licensing
New Mexico, Wisconsin

H & R Block
(505) 392-4077
2404 N Grimes St
Hobbs, NM
 
H & R Block Tax Svc
(505) 492-9880
2400 N Grimes St
Hobbs, NM
 
Cynthia Saunders Murray
(505) 241-4952
Alvarado Square, Ms-1200
Albuquerque, NM
 
Grimes Howell Bookkeeping & Tax Service
(505) 393-4512
405 W Snyder St
Hobbs, NM
 
H & R Block
(505) 394-0850
1201 E Main St
Hobbs, NM
 
Edwards Tax Service
(505) 393-6431
909 N Turner St
Hobbs, NM
 

Tax Credit Consulting: Energy Efficient Air Conditioners

Tax Credit for New Installation of Air Conditioning

The government often tries to influence our behavior through taxes. The tax credit for new installation of air conditioning systems that are energy efficient is one example.

As part of the provisions in the Energy Policy Act 2005, homeowners are entitled to claim tax credits on use of a few energy saving items. They include installation of energy saving windows, doors, roofing, furnace and boiler, water heater and air conditioner. As energy becomes scarcer by the day, it is essential to conserve as much energy as possible. The government, by way of giving tax credits, also encourages using alternate sources of energy.

New installation of energy efficient air conditioning systems is one of the items that qualify for tax credit. Individuals who install this type of air conditioner are eligible for a tax credit of up to $300. The models that qualify are obviously costlier than the ordinary ones. However, this calculation would show that it is advisable to install a new energy saving air conditioner. Even if you save just $10 a month on average by way of electricity bills it comes to $120 for a year. Add to that the tax credit of $300, your net saving is $420. This amount should be good enough to prod a homeowner into buying an energy efficient air-conditioner.

Of course, not all air conditioners are eligible for a tax credit. Even, not all Energy Star air conditioners qualify, only some do. Very efficient central air conditioners qualify for the tax credit if they meet the following criteria:

• The Energy Efficiency Ratio has to be 13.0 or higher (in some states its 12.5).
• Certified technician needs to install the equipment.
• The Seasonal Energy Efficiency Ratio (SEER) has to be 15.

SEER measures performance throughout the season and EER measures performance on a very hot day. Central Air conditioning systems must meet the standards set by the Consortium of Energy Efficiency (CEE). The specificat...

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