Can I earn a tax credit for my new heat pump?

April 08, 2020

For many households, there always seems to be a long list of house projects that they need to complete or new ideas they’d like to try. While a few may not be necessary, getting a new heat pump is a project that could be key to keeping your indoor space comfortable through the cooler months in Long Beach.

Buying a new heat pump is a sizeable investment. You’ll definitely feel the return-on-investment on your indoor comfort as well as your energy bills, but it might be a tad daunting at first. The good news is that when you buy a new energy-efficient heat pump, you could be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were extended through December 31, 2020. In order to obtain the tax credit, you must buy a heat pump that has received the ENERGY STAR label. When researching heat pumps, keep an eye out for types with the ENERGY STAR rating so you can be certain you’re getting a high-efficiency heat pump.

At YES R&M Inc., we’ll help you select a solution that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm the heat pump you select has the following requirements.

For Split Systems:

  • Heating Seasonal Performance Factor (HSPF): 8.5 or higher
  • Energy Efficiency Ratio (EER): 12.5 or higher
  • Seasonal Energy Efficiency Ratio (SEER): 15 or higher

 

For Package Systems:

  • HSPF: 8 or higher
  • EER: 12 or higher
  • SEER: 14 or higher

 

This tax credit will not be the only savings you’ll receive when you get a new high-efficiency heat pump. Some of the most efficient solutions can save you hundreds of dollars on your utility costs all year long. And the family will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

When you have questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by installing a new high-efficiency heat pump, give our experts at YES R&M Inc. a call at 562-286-6624. You may also visit ENERGY STAR or call your local utility company if you have questions about other eligible home products.