Q) Is there a Federal tax credit available for replacing my central air conditioner with a more efficient A/C unit?

A) Yes, central air conditioners that meet the following requirements qualify for a tax credit of 30% of the cost (including installation), up to $1,500 in 2009 and 2010:

Split Systems: SEER >= 16 & EER >=13
Package systems: SEER >= 14 & EER >=12

Q) Do I have to replace both my heating & air conditioning system to qualify ?

A) The law does not require that you replace both your heating and air conditioning, but practically speaking you will probably have to replace both for the air conditioner to qualify.

Most central air conditioners (CACs) on the market today will only be able to qualify for the tax credit if you also replace the air moving device that pushes the cool air through the duct system (this "blower motor" is usually part of the furnace, but if you don't have a furnace it will be part of the air handler). Today's air conditioners need the added efficiency from a highly efficient blower motor (commonly an ECM, Electronically Commutated Motor, or another type of "advanced main air circulating fan") to reach the tax credit efficiency level.

If you recently replaced your furnace, check what kind of "blower motor" it has. If it has an advanced main circulating fan, then it's possible that a new air conditioner could qualify with this furnace.

Another factor to consider is that to get the required certification to prove your system qualifies for the tax credit, the equipment (both air conditioner and furnace) will need to be from the same manufacturer. This is because the systems (condenser, evaporator coil, and blower motor) have to be tested together and currently manufacturers are only testing and certifying their own equipment.

Q) How has the 2009 Stimulus Bill affected energy efficiency tax credits?

A) On February 17, 2009, President Obama signed the "Stimulus Bill" (The American Recovery and Reinvestment Act of 2009) that made significant changes to the energy efficiency tax credits. These changes apply to products " placed in service" in 2009. The highlights are:
The tax credits that were previously effective for 2009, have been extended to 2010 as well. The tax credit has been raised from 10% to 30%. The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost. The maximum credit has been raised from $500 to $1,500 total for the two year period (2009-2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum. The $200 cap on windows has been removed, but the requirements for windows (after June 1, 2009) has been increased significantly. Not all ENERGY STAR qualified windows will qualify after June 1, 2009.

Q) I’m interested in replacing my heating &/or air conditioning system in the near future & would like more information on the HVAC Energy Tax Credit. Can someone assist me with this?

A) For more information, please call Mainard & Sanders at (405) 636-1983 for a FREE (no obligation) in-home comfort assessment.