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Tax Credit Consulting: Energy Efficient Air Conditioners Iowa City IA

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.

Matthew Scott Carstens
(319) 364-6000
201 3rd Avenue SE
Cedar Rapids, IA
Specialties
Litigation, Real Estate, Antitrust, Energy
Education
University of Iowa College of Law,American University,University of Michigan
State Licensing
Illinois, Iowa, Michigan

Richard W. Lozier Jr.
(515) 283-4336
666 Walnut St
Des Moines, IA
Specialties
Telecommunications, Real Estate, Insurance, Energy
Education
Exeter University,University of Iowa
State Licensing
Iowa

H & R Block
(319) 337-9170
Coral Ridge Mall
Iowa City, IA
 
H & R Block
(319) 354-1750
1745 Boyrum St
Iowa City, IA
 
Fisher Accounting & Tax Service
(319) 341-6562
1486 S 1st C Ave
Iowa City, IA
 
Paula Sue Dierenfeld
(515) 283-8023
700 Walnut Ste 1600
Des Moines, IA
 
Sheila K. Tipton
(515) 243-7100
The Financial Center, 666 Walnut, Ste 2000
Des Moines, IA
Specialties
Administrative Law, Energy, Employment, Telecommunications
Education
Drake University Law School,Ohio University
State Licensing
Iowa

H & R Block
(319) 358-5878
1001 Highway 1 W
Iowa City, IA
 
H & R Block
(319) 354-1750
1745 Boyrum St
Iowa City, IA
 
Liberty Tax Service
(319) 248-1964
1843 Lower Muscatine Rd
Iowa City, IA
 

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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