When you start your next campfire or fire in the fireplace, why don’t you just use a couple of hundred dollar bills to get it started? Wouldn’t ever think of it? Well that’s what you will be doing if you have an old HVAC system and don’t act NOW to replace it before the end of the year.
If it’s time to update your heating and air conditioning system(s) and you don’t do it NOW, you could miss out on hundreds of dollars in tax credit that goes right to the bottom line and in your pocket! When you couple that savings with special financing and other rebates that may be available, it’s the right time to replace that old system with a new efficient one. Not to mention having a system no longer using R-22, a banned refrigerant that is going to continue to be costly each summer as the reservoir is depleted.
The work you do can be eligible for available tax credits, but as of this moment they are set to expire on December 31, 2016. It doesn’t make any difference if you were a “Make America Great Again” or a “Stronger Together” person during the campaign season, the simple truth is there’s new political leadership and no one knows if these tax credits will be renewed for 2017. Whether it’s a new Trane furnace, heat pump, or air conditioner, it will actually make you smile a little bit when you are filling out your tax return and find out how much money you’re going to right to the bottom line.
Plan on going greener and installing a geothermal heat pump? The savings can be much larger and offer a fantastic long-term solution for low-cost home comfort. Thinking about installing solar? The tax credit for that is not expiring this year, but in years to come the size of the tax credit starts getting smaller.
If you stop and think about this, it’s really a no-brainer. Depending on how old your system is, a new furnace, heat pump, or air conditioner is going to be more efficient. A 20% reduction in utility bills with a new HVAC system isn’t unheard of, and if you add in the larger tax return you will receive if you qualify for the tax credits in place currently, it’s a win-win for you, the homeowner.
This is just like anything else, you have to do your homework. The government is not just going to write you a check, no questions asked (no snarky comments please about government programs). You can make sure the system you’re going to buy qualifies for the tax credits by going to the IRS website, but it can still be pretty confusing. Your best bet is to call on Sanborn’s, your local favorite HVAC professional, who can quickly explain how the credits work and how you can qualify for a new & efficient Trane system. Of course you will want to also speak about it further with your tax consultant to verify your qualification and filing.
- You know your HVAC system is outdated
- Lower monthly utility bills with a new efficient system
- Hundreds of dollars in tax credits that will more than likely expire at the end of the year