Rebates in Fort Worth

HVAC Tax Credits, Savings and Energy Ratings

A reliable HVAC system is vital for a comfortable and stress-free home, but it’s also a significant purchase. Each and every homeowner deserves top-notch climate control solutions, no matter their budget. That’s why HVAC rebates and other savings opportunities are so beneficial. By utilizing rebates, tax credits and various plans, you can make new installation more affordable. But before you get started, there are a few things to keep in mind to ensure you get the most out of these programs.

For instance, HVAC systems’ energy efficiency is getting higher, so you’ll want to check the minimum ratings to get a better understanding of what’s energy efficient for the climate. In order to be eligible for these tax credits, your chosen make and model has to meet these requirements.

Stark Services can simplify the process. By providing information about local HVAC rebates online, it becomes more convenient for homeowners to save funds and hours on this crucial utility. We’ll also help you find the perfect make and model to ensure you benefit the most from heat pump incentives, AC incentives and more.

How New Rules Impact Energy Efficiency Ratings and HCFC Refrigerant

As solutions for climate control improve, so do our standards for what makes them energy efficient. There are unique rating systems for heating and cooling units, and noncompliant models can only be sold or installed if they were manufactured before the cutoff date. Use these rating systems to effortlessly identify which models are eligible for rebates and tax credits.

HVAC Standards for Energy Efficiency

Every seven years, the U.S. Department of Energy updates the minimum efficiency requirements for HVAC systems. This time, there are new minimum efficiency standards that homeowners should keep in mind. In Northern regions, non-compliant AC and heat pump systems finished before January 1, 2023, can still be sold and installed. Meanwhile, in the Southeast and Southwest regions, non-compliant air conditioning systems are prohibited no matter their manufacture date. Non-compliant heat pumps manufactured before January 1, 2023, can still be sold and installed in these areas.

Knowing these HVAC efficiency measurements is essential for both manufacturers and homeowners:

  • SEER and SEER2: Seasonal Energy Efficiency Ratio systems are for air conditioners, with the SEER2 ratings applying to newer AC systems. The minimum for both SEER and SEER2 ratings fluctuate by region across the United States, with hotter southern climates requiring greater efficiency ratings.
  • EER: An analogous system to SEER, EER ratings focus only on the electric capacity of an AC or heat pump, comparing the BTUs against energy output in watts.
  • HSPF and HSPF2: HSPF stands for Heating Seasonal Performance Factor and measures energy use by heat pumps, with HSPF2 being the newest standard for more recent designs.
  • AFUE: The Annual Fuel Utilization Efficiency system demonstrates furnace efficiency by the amount of heat produced per dollar of fuel. Today’s minimum standards require an 81% AFUE rating or higher.

Minimum HVAC Efficiency Ratings for 2024

Type of System 2023 Minimum Rating (Northern) 2023 Minimum Rating (South + Southeast)
AC (<45,000 BTU/hr) 14 SEER (13.4 SEER2) 15 SEER (14.3 SEER2)
AC (>45,000 BTU/hr) 14 SEER (13.4 SEER2) 14.5 SEER2 (13.8 SEER2)
Split-system heat pump 15 SEER (14.3 SEER2)

8.8 HSPF (7.5 HSPF2)

15 SEER (14.3 SEER2)

8.8 HSPF (7.5 HSPF2)

Single-package heat pump No change No change

 

New US EPA Refrigerant Regulations

A large part of why HVAC technology improved was the need for safer, more efficient refrigerant. In the past, most air conditioners used something called R-22, more commonly known as Freon, for coolant. But this substance is a hydrochlorofluorocarbon (HCFC), which was found to harm the ozone. The US started to remove HCFCs in the mid 1990s and passed the 2020 American Innovation and Manufacturing Act to speed up the replacement of HVAC equipment still using Freon and other HCFC refrigerants.

Lower First Expenses with Federal Tax Credits

The Inflation Reduction Act of 2022 has made it easier for homeowners to save on new HVAC equipment and other energy-efficient upgrades. Here’s how you can utilize these opportunities:

  • Residential Energy Credits
  • Household Energy Tax Credits

Home Energy Credits

You can apply for tax credits for eligible energy-efficient improvements including HVAC systems and insulation as well as energy-efficient windows and doors. These credits help cut down the full cost of home energy upgrades, making it more affordable to improve your home’s efficiency.

Energy-Efficient Home Improvement Credit

This credit will cover 30% of the cost of eligible home improvements, up to $1,200 each year. This includes upgrades to heating and cooling systems, energy-efficient windows and doors, and insulation. By using this incentive, you can receive better home efficiency and enjoy even more energy savings.

Federal Tax Credits and Deductions

The Inflation Reduction Act of 2022 offers considerable financial incentives for certain energy upgrades, available through 2032. Homeowners can receive up to $3,200 annually, lowering the cost of energy-efficient home improvements by 30%.

Solar Installations and Solar-Powered HVAC: With the Inflation Reduction Act, you can get a tax credit for 30% of the cost of installing clean energy systems like solar panels and solar-powered HVAC systems. This credit makes solar energy more available and affordable, fostering the use of renewable energy sources.

Energy-Efficient Heat Pumps: The Act also includes incentives for purchasing and installing energy-efficient heat pump systems. incentives can cover a major portion of the cost, making heat pumps an attractive option for improving your home’s heating and cooling efficiency. Heat pumps are a particularly energy-efficient option and can greatly lower your energy consumption and costs.

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