The Comfortable Blog

Tax Credits on Energy Efficient HVAC Products

2010, barring any extra-terrestrial phenomenon depicted in Arthur C Clark’s book, global warming will be limited to the various mundane theories that abound. One thing that is certain as we enter 2010 is April 15. Yes, tax time. What does global warming and tax time have to do with anything? Luckily, it means more money in our pockets. Inside the American Recovery and Reinvestment Act, Congress passed many tax credits that were aimed at increasing the adoption of energy efficient appliances and products. Below is the summary of the tax credits as well as a link to the form that you will need in order to claim the tax credit:

95% AFUE Natural Gas, Propane, Oil Furnaces – 30% of installation and parts up to $1,500.

Advanced Main Air Circulating Fan – this does not apply to the Evergreen motor. This is for new furnace installations that do not meet the 95% AFUE, but does meet the electrically efficient standard set forth by ARI. Qualifying systems are eligible for the 30% tax credit. There is a trick. You will need to apply the 30% to only the portion that applies to the blower and motor. Manufacturers will provide this percentage. For example, a $3000 furnace may be identified by the manufacturer to have the blower and motor cost to be 40% of the system. This will mean that the blower will essentially be $1200. So, the tax credit will be $360 (30% x $1200).

Geothermal Systems – 30% of the installation and parts. No maximum cap!

Central Air Conditioners - 30% of installation and parts up to $1500. Qualifying systems must meet 16 SEER AND 13 EER.

Air Source Heat Pumps – 30% of installation and parts up ot $1500. Qualifying systems must meet 15 SEER AND 12.5 EER.

IRS Form 5695

http://www.irs.gov/pub/irs-pdf/f5695.pdf

FAQ on the Energy Star website:
http://tinyurl.com/yj686do

Note that the tax credit is a cumulative maximum of $1500 per tax filer’s lifetime. So, if you had spent $5,000 on a qualified furnace, then you would be maxed out. However, if you had spent $3,000 on a furnace, then you would have $600 left to apply (hopefully to a product that contains a Genteq product). To keep our lawyers satisfied, please make sure you check with your tax advisor or the IRS. Note that the tax credit is currently good for 2009 and 2010 installations only. It’s not April 14th yet, so I can’t advise how Turbo Tax may have simplified the forms.

-Paul

Evergreen Installation Example

Recently one of our engineers volunteered to teach a 2^nd grade class in economics through the Junior Achievement. She overheard one of the classes discussing what they were thankful for, and one of the girls said she was thankful for pockets. How simple and genuine kids are! As we go into Thanksgiving, I want to wish everyone a happy Thanksgiving!

I’d like to take the opportunity to highlight a recent installation Genteq completed to demonstrate the Evergreen blower motor. The Evergreen replacement blower motor is an aftermarket replacement motor for the furnace, or air handler, blower motor that utilizes the same ECM variable speed technology used in various manufacturers’ variable speed furnace and air handler system. The benefits of installing these motors into existing furnaces are the ability to achieve energy savings and indoor air quality improvements in the home.

The home in San Ramon, CA is a single story home with about 2300 sq. ft. Here are some of the watt savings for the homeowner.

Current Motor Evergreen Motor Watt Savings

Heating 605 Watts 390 Watts 215 Watts (reduction of 36%)

Cooling 598 Watts 530 Watts 68 Watts (reduction of 11%)

Constant Fan 598 Watts 118 Watts 480 Watts (reduction of 80%)

On top of the watt savings, the homeowner was very happy with the reduction in noise in constant fan mode which allowed the homeowner to run the motor in constant fan while enjoying the indoor air quality benefits.

At an average of $.17/kWHr, this translates to $328 of annual savings to the homeowner. I’m also thankful for pockets that will be filled with all the savings from the Evergreen motor!

To find out more information on the Evergreen blower replacement motor, please visit http://www.genteqcomfort.com

Why you should ask for NATE certified contractors.

The short answer is to make sure the technicians working in your home are qualified to get the job done right the first time and prevent callbacks. In the U.S. there is no national level requirement for HVAC contractors; it is left to each state. In most states the requirement to be a contractor is that one person in the company has a contractor’s license (usually but not always the owner). Outside of the contractor’s license, in almost all states, there is no minimum requirement or certification requirement to be an HVAC technician. NATE-certified technicians are skilled professionals who have voluntarily proven their knowledge in the HVAC industry by passing specialized NATE certification tests. In my opinion, NATE is like an HVAC technician’s degree that covers not only theory but also practical knowledge from field experience. The next time you are looking through the yellow pages for a contractor trying to find the lowest price, ask if they are NATE certified, and then decide if the cost savings is worth it for you and your family. For more information on NATE go to www.hvacradvice.com .

Stimulus bill provides homeowners lower cost green home improvements

The new stimulus bill now provides homeowners up to a $1500 credit on upgrades/additions to your heating and cooling system. This is a great way to enjoy a healthier, quieter home, at up to a 30% savings! Not to mention the impact it will have every month on lower utility bills. For more details, go to Energy Star's website. http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

Q: Is Genteq the GE ECM?

Bill - Roanoke, VA

A:

The short answer to your question is "Yes." When Regal Beloit Incorporated bought GE ECM several years ago, the two corporations formed a contract giving Regal Beloit permission to use the "GE" name. In 2010, this contract expires and a new name will be needed. Rather than wait for the last minute, Regal Beloit is taking advantage of the final year of usage to form a smooth transition to the new name.

After screening literally hundreds of potential names, Genteq was chosen. It is derived from a combination of the words "Ingenuity" and "Technology," the main drivers behind the company's 100-year reputation. You can rest assured that the changes end there. Genteq products will continue be the high quality, high reliability, premium components they always have been. You can also look forward to a new commitment to even stronger, more responsive personal customer service. Plus the new logo looks great on a work shirt.

Q: Why is the second floor of my home so much colder than the first floor?

Vicki - Davenport, IA

A:

Everyone asks me that, Vicki. The answer is you probably only have one thermostat in your home, and it is located on the first floor. Because the first floor receives warmed air from the heating system first, it warms up faster. Once the thermostat temperature is met, the furnace shuts off – usually before enough warm air can reach the upper floor.

The best way to correct this is to install a zone heating system. This system divides your home into heating zones, each watched by it own thermostat. When the temperature in a particular zone falls below the set temperature, the thermostat in that zone turns on the furnace. A series of dampers in the duct work guide warm air only to that zone. As a result, the temperature in your home stays consistent from room to room – and your furnace won't work as hard.