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Tax Credit Consulting: Energy Efficient Air Conditioners Washington DC

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.

Alexis Slagle Gilroy
(202) 712-2893
101 Constitution Avenue, Nw, Suite 900
Washington, DC
Specialties
Energy, Health Care, Agriculture
Education
American University (DC)
State Licensing
Georgia

M Lisanne Crowley
401 9TH ST NW STE 1000
WASHINGTON, DC
 
Anne K Dailey
401 9TH ST NW STE 1000
WASHINGTON, DC
 
Bonnie A Suchman
401 9TH ST NW STE 1000
WASHINGTON, DC
 
Lee A. Alexander
(202) 637-5526
Hogan Lovells US Llp, 555 Thirteenth St Nw
Washington, DC
Specialties
Energy, Environmental
Education
University of Pittsburgh School of Law,Pennsylvania State University, University Park (main campus)
State Licensing
DC, Pennsylvania

Lisa Barbas Luftig
(202) 508-4168
701 8TH ST NW
WASHINGTON, DC
Specialties
Energy, Environmental, Federal Regulation, Project Finance
Education
Syracuse University College of Law,Columbia University
State Licensing
DC

Howard N Cayne
(202) 942-5656
1001 PENNSYLVANIA AVE NW OFFICE BLDG
WASHINGTON, DC
Specialties
Financial Markets And Services, Litigation, Government Contracts, Energy
Education
Washington University School of Law,University of Rochester
State Licensing
DC

Daniel E Frank
(202) 383-0838
1275 Pennsylvania Avenue N.W.
Washington, DC
Specialties
Energy, Appeals, Litigation
State Licensing
DC

Rita L Brickman
(202) 344-8137
575 7TH ST NW
WASHINGTON, DC
Specialties
Media, Advertising, Business, Energy
Education
Boston University School of Law,University of Pennsylvania,University of Pennsylvania
State Licensing
DC

Linda J Morgan
(202) 662-5214
1201 PENNSYLVANIA AVE NW OFFICE BLDG
WASHINGTON, DC
 

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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