Shamrock Heating And Air Conditioning, Inc
residential and commercial
heating, air conditioning and electrical contractors
serving south jersey and the surrounding areas
HIC Lic. # 13VH00274200 - Electrical Lic. # 7599-B
Available For Emergencies 24/7/365:
Call 609-859-0110 For Service
Federal Tax Credits
On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) , that made some significant changes to the energy efficiency tax credits.
Tax Credits for Homeowners
- The efficiency levels have been modified to reflect the highest tier of the CEE High-efficiency Specification for Residential HVAC Systems for equipment "placed in service" between Feb. 17, 2009 to Dec. 31, 2010. Please note: Equipment listed in the chart below (except water heaters, which only needs to achieve one of the efficiency specifications) must meet all performance specifications for its category. For example, a tax-credit eligible split central air conditioner must have stated performance ratings of 13 EER and 16 SEER.
- The tax credit has been raised from 10% to 30% for certain products.
- The tax credits that were for a specific dollar amount (i.e. $300 for a CAC), have been converted to 30% of the cost.
- The maximum credit has been raised from $500 to $1500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
- Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010.
Residential Central A/C
Split: EEREER
Energy Efficiency Ratio (EER) is a measure of how efficiently a cooling system will operate when the outdoor temperature is at a specific level (95oF). The higher the EER, the more efficient the system.
In technical terms, EER is the steady-state rate of heat energy removal (i.e. cooling capacity) by the product measured in Btuh divided by the steady-state rate of energy input to the product measured in watts. This ratio is expressed in Btuh/watt.
Both SEER and EER are included in the ENERGY STAR specification because each rating indicates the energy efficiency of the product under different operating modes. SEER rating more accurately reflects overall system efficiency on a seasonal basis and EER reflects the system’s energy efficiency at peak day operations. Both ratings are important when choosing a product.
>=13 and SEERSEER
Seasonal Energy Efficiency Ratio (SEER), is most commonly used to measure the efficiency of a central air conditioner. The higher the SEER, the more efficient the system. SEER measures how efficiently a cooling system will operate over an entire season.
In technical terms, SEER is a measure of equipment the total cooling of a central air conditioner or heat pump (in Btu) during the normal cooling season as compared to the total electric energy input (in watt-hours) consumed during the same period.
Both SEER and EER are included in the ENERGY STAR specification because each rating indicates the energy efficiency of the product under different operating modes. SEER rating more accurately reflects overall system efficiency on a seasonal basis and EER reflects the system’s energy efficiency at peak day operations. Both ratings are important when choosing a product.
>=16Packaged: EER>=12 and SEER>=14
The tax credit is for 30% of the total cost. note: #1
Effective Date: Feb. 17, 2009 – Dec. 31, 2010
Find Qualifying Equipment: Go to Air Conditioners and Air Conditioner Coils and enter the minimum EER and SEER.
Residential Air-Source Heat Pumps
Split: HSPFHSPF
Heat Seasonal Performance Factor (HSPF) is the most commonly used measure of a heat pumps heating efficiency. The higher the HSPF, the more efficient the heat pump.
In technical terms, HSPF represents the total heating output of a heat pump (including supplementary electric heat) during the normal heating season (in Btu) as compared to the total electricity consumed (in watt-hours) during the same period. HSPF is based on tests performed in accordance with AHRI 210/240 (formerly ARI Standard 210/240).
>= 8.5 and EER >= 12.5 and SEER >= 15Packaged: HSPF >=8 and EER >= 12 and SEER >= 14
The tax credit is for 30% of the total cost. note #1
Effective Date: Feb. 17, 2009 – Dec. 31, 2010
Find Qualifying Equipment: Go to Heat Pumps and Heat Pump Coils and enter the minimum HSPF, EER and SEER.
Residential Geo-thermal Heat Pump
Closed Loop: EER >= 14.1 and COPCOP
Ratio of work or useful output to the amount of work or energy input, used generally as a measure of the energy-efficiency of air conditioners, space heaters and other cooling and heating devices. COP equals heat delivered (output) in British thermal units (Btu) per hour divided by the heat equivalent of the electric energy input (one watt = 3.413 Btu/hour) or, alternatively, energy efficiency ratio divided by 3.413. Higher the COP, higher the efficiency of the equipment.
>= 3.3Open Loop: EER>=16.2 and COP>=3.6
Direct Expansion: EER>=15 and COP>=3.5
This one-time tax credit is for 30% of the total investment note #2
Effective Date: The credits are available for systems "placed in service" from Jan. 1, 2006 through Dec. 31, 2016.
Find Qualifying Equipment: Go to either the Water-to-Air and Brine-to-Air Heat Pumps/a> or Direct Geoexchange Heat Pumps directories. Limit your search by entering the qualifying efficiency ratings specified in the second column on this page.
Residential Gas, Oil, Propane Furnace or Hot Water Boiler Furnaces:
*Gas >= 95% AFUEAFUE
The AFUE is the most widely used measure of a furnace's heating efficiency. It measures the amount of heat actually delivered to your house compared to the amount of fuel that you must supply to the furnace. Thus, a furnace that has an 80% AFUE rating converts 80% of the fuel that you supply to heat -- the other 20% is lost out of the chimney.
Note that the AFUE refers only to the unit's fuel efficiency, not its electricity usage.
The US Department of Energy (DOE) determined that all furnaces sold in the US must have a minimum AFUE of 78%, beginning January 1, 1992. Mobile home furnaces are required to have a minimum AFUE of 75%. The DOE's technical definition of AFUE is as follows:The measure of seasonal or annual efficiency of a furnace or boiler. It takes into account the cyclic on/off operation and associated energy losses of the heating unit as it responds to changes in the load, which in turn is affected by changes in weather and occupant controls.
*Oil >= 90% AFUE
*Propane >= 95% AFUE
Boilers >=90% AFUE
The tax credit is for 30% of the total cost. note #1
Effective Date: Feb. 17, 2009 – Dec. 31, 2010
Find Qualifying Equipment: Go to: Furnaces Go to: Boilers
Advanced Main Air Circulating Fan
No more than 2% of furnace total energy use. Read this IRS Guidance if the fan qualifies, but the furnace does not. Read AHRI Safe Harbor Proposals to IRS. The tax credit is for 30% of the total cost. note #1Effective Date: Feb. 17, 2009 – Dec. 31, 2010
Residential Gas, Oil, Propane Water Heater
Energy Factor >= 0.82 or Thermal Efficiency>=0.90The tax credit is for 30% of the total cost. note #1
Effective Date: Feb. 17, 2009 – Dec. 31, 2010
Find Qualifying Equipment: Go to:Water Heaters
Residential Electric Heat Pump Water Heater
Energy Factor >= 2.0The tax credit is for 30% of the total cost. note #1
Effective Date: Feb. 17, 2009 – Dec. 31, 2010
Find Qualifying Equipment: Go to:Water Heaters
- Note 1: Total cost includes cost of the product + installation up to a $1,500 maximum cap per homeowner for all combined improvements made in 2009 and 2010.
- Note 2: This credit is not limited to the $1,500 home improvement cap footnoted above.
- Note 3: A Manufacturer’s Certification is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.
Geothermal Tax Credits
An exciting new tax credit is now available for home and commercial building owners who install geothermal heating and cooling systems through the Energy Improvement and Extension Act of 2008 (H.R. 1424). H.R. 1424 offers a onetime tax credit of 30% of the total investment for homeowners who install residential ground loop or ground water geothermal heat pumps.. A credit of 10% of the total investment is also available (no maximum) for a commercial system installation. To qualify, the systems must meet or exceed EnergyStar requirements and be installed after December 31, 2007.- Closed Loop:
EER
EER
Energy Efficiency Ratio (EER) is a measure of how efficiently a cooling system will operate when the outdoor temperature is at a specific level (95F). In technical terms, EER is the steady-state rate of heat energy removal (i.e. cooling capacity) by the product measured in Btuh divided by the steady-state rate of energy input to the product measured in watts. This ratio is expressed in Btuh/watt. The higher the EER, the more efficient the air conditioner. >= 14.1 / COPCOP - Coefficient of Performance
Coefficient of Performance is the efficiency ratio of the amount of heating or cooling provided by a heating or cooling unit to the energy consumed by the system. The higher the Coefficient of Performance the more efficient the system. Electrical heating for example has a Coefficient of Performance of 1.0. The higher the COP, the more efficient the air conditioner. >= 3.3 - Open Loop:
EER
EER
Energy Efficiency Ratio (EER) is a measure of how efficiently a cooling system will operate when the outdoor temperature is at a specific level (95F). In technical terms, EER is the steady-state rate of heat energy removal (i.e. cooling capacity) by the product measured in Btuh divided by the steady-state rate of energy input to the product measured in watts. This ratio is expressed in Btuh/watt. The higher the EER, the more efficient the air conditioner. >=16.2 / COPCOP - Coefficient of Performance
Coefficient of Performance is the efficiency ratio of the amount of heating or cooling provided by a heating or cooling unit to the energy consumed by the system. The higher the Coefficient of Performance the more efficient the system. Electrical heating for example has a Coefficient of Performance of 1.0. The higher the COP, the more efficient the air conditioner. >=3.6
For Complete Ratings go to ari.org or cee1.org
While units installed in 2008 are subject to a $2,000 cap on the credit, units installed from 2009 through 2016 can take advantage of the full credit. Owners can file for the credit by completing the Renewable Energy Credits subsection on their tax return forms for 2008. For taxpayers that are subject to the Alternative Minimum Tax, they can claim the credit on their taxes for the following year. No proof of purchase will be required; however, in case of an audit, owners are encouraged to keep a detailed invoice of their purchase on file. The contractor who sold and installed the product should list the purchase as a "Geothermal Heat Pump" on the invoice and that it "Exceeds requirements of Energy Star program currently in effect". The tax credit is available through December 31, 2016. Consult your local tax professional for advice on taking advantage of the tax credit, as this announcement is not intended as a recommendation or endorsement of any financial strategy.Find Out More About Geothermal Systems By Shamrock Inc >>>>
Tax Credit Information Resources:
Federal Tax Credits for Energy Efficiency - Energy Star
**Please note, not all ENERGY STAR qualified homes and products qualify for a tax credit. These tax credits are available for a number of products at the highest efficiency levels, which typically cost much more than standard products. If, for whatever reason, you decide not to purchase a product covered by the tax credit, you may still consider purchasing an ENERGY STAR product. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.
Residential Tax Credit Information From ARI.ORG
- The tax credit has been raised from 10% to 30% for certain products.
- The tax credits that were for a specific dollar amount (i.e. $300 for a CAC), have been converted to 30% of the cost.
- The maximum credit has been raised from $500 to $1500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
- Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010.
Residential Tax Credit Information From Waterfurnace
IRS tax code summarized - United States Code Title 26More Information about the "Residential Renewable Energy Tax Credit
Find additional tax incentives that may be available in your state
Consult your tax professional for details.
The information contained in this publication is for general information only. This guide is not an authority that can be cited in response to an enforcement action or in litigation. The information is provided with theunderstanding that Shamrock Inc is not rendering legal, accounting, tax, or other professional advice. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers.While we have made every attempt to ensure that the information contained in this publication has been obtained from reliable sources.
Shamrock Inc is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose.
In no event will Shamrock Inc, its related partnerships or corporations, or the partners, agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this publication or for any consequential, special or similar damages, even if advised of the possibility of such damages. Shamrock, Inc., P.O. Box, Vincentown, NJ 08088. Shamrock Inc has a policy of continual product research and development and reserves the right to change design and specifications without notice. ©2009 Shamrock, Inc.
