It won’t be long before the cooler temperatures of winter descend on Mount Pleasant, SC. If you are concerned that your current heating system won’t make it through another cold weather season, now is the perfect time to consider a furnace upgrade. You only have until December 31 of this year to take advantage of the 25C federal tax credit program when purchasing a new energy efficient heating system. The tax savings program has already been extended one time and it has not yet been renewed for 2014.
Heating Equipment Eligible for a 25C Federal Tax Credit
Both split system and packaged electric heat pumps are eligible for a $300 tax credit as long as they meet minimum efficiency requirements. Split system heat pumps must have a Heat Seasonal Performance Factor (HSPF) rating of at least 8.5. The HSPF requirement for packaged electric heat pumps is 8.0. Boilers and furnaces with an Annual Fuel Utilization Efficiency (AFUE) rating of at least 95 percent are eligible for a $150 tax credit.
Understanding Energy Efficiency Ratings
The federal government requires high energy efficiency ratings to claim a tax credit because the ratings are an excellent indication of how well the heating system will perform. A furnace or boiler with a 95 percent AFUE only vents five percent of its available fuel outside of your home. The Performance 96 gas furnace, Infinity 96 gas furnace and Infinity 98 gas furnace with Greenspeed Intelligence available from Berkeley Heating & Air Conditioning all meet the standards of the 25C tax credit program.
To determine the HSPF of a heat pump, scientists first determine how much heat is required over the entire cold weather season as measured in watt-hours. This figure is then divided by the total energy consumed by the heat pump. The result is a number ranging from the minimum Department of Energy (DOE) requirement of 6.8 to a maximum of 10.
Is Now the Right Time to Replace Your Furnace?
While a tax credit of $150 to $300 is enticing, it may not be enough to prompt you to have a heating system installed that is more energy efficient. According to the federal Energy Star program, you should seriously consider a heat pump, boiler or furnace upgrade under these conditions:
- Your heat pump is more than 10 years old.
- Your furnace or boiler is more than 15 years old.
- Your energy bills are increasing despite your conservation efforts.
- Some rooms in your home are too hot while others are too cold.
- Your heating system makes frequent unpredictable noises.
- You notice dust clouds coming from your air vents.
- There is too much humidity in your home despite your efforts to control it.
If you decide to upgrade at this time, you may be able to save additional money by checking our specials page.