Tag Archives: Oregon Tax Credits

Installing a New System? Take Advantage of Those Tax Credits in 2014!

tax-5January isn’t just the start of a new year – it’s also the start of tax season. While tax season fills some of us with excitement (who doesn’t love refunds?) and others with dread of all the paperwork, it helps to keep on top of new measures and tax credit programs that may help you save money when you file. Here at Home Comfort, we love to help our customers save money, and we’re here to keep you informed whenever we hear about new measures and changes to tax credit programs that apply to energy efficient heating and cooling systems.

First, the bad news: the federal Department of Energy (DOE) has some incentive programs that have changed with the start of the new year. Homeowners should take note that the Residential Energy Efficiency tax credit expired on January 1st, 2014. Homeowners had previously been able to claim a tax credit of up to $500 for installing qualifying energy efficient equipment, which included energy efficient furnaces, ductless heat pumps, water heaters, insulation materials, and windows.

If the expiration of this credit put a damper on your plans to upgrade your heating and cooling equipment this year, don’t give up yet! There are still lots of incentives available for Oregon homeowners who wish to purchase a more efficient HVAC system in 2014. The Oregon Department of Energy (ODOE) recently released their new tax credit rates on energy efficient heating and cooling equipment for the new year, and many of the systems that no longer qualify for the federal credit are still available at the state level. Check out this chart outlining the new rates here – with the installation of the right equipment, you can see some serious savings down the road!

And don’t forget that there are still some tax credits available at the federal level, even if you can’t claim it for all forms of HVAC equipment. The DOE’s Residential Renewable Energy tax credit program is still in effect this year, and you can take advantage of this credit if you install equipment powered by renewable energy sources, such as geothermal heat pump systems and solar water heaters. This incentive allows you to claim a credit worth up to 30% of the cost of the project, and remains in effect through December 31st, 2016. Geothermal systems tend to cost more than traditional HVAC systems, but the long term energy savings are significant, and with another three years to claim the credit, you still have plenty of time to decide if a renewable energy system is right for you!

Home Comfort is always keeping track of tax credit incentives for heating and cooling equipment. If you’re thinking of installing a new system, contact us and ask us what incentives are available. We’re here to help you get rewarded for going green!

Sources:

www.oregon.gov/energy

http://energy.gov/savings/residential-energy-efficiency-tax-credit

http://energy.gov/savings/residential-renewable-energy-tax-credit

Decoding HVAC Jargon: HSPF Ratings Explained

hspf

Welcome back to our series on common terms in the HVAC industry! Last week, we discussed the meaning and importance of SEER ratings. We mentioned that an air conditioner’s SEER rating is especially important for naturally hot climates like Arizona, New Mexico, and Texas. But if you live in a mild climate like states in the Northwest, you should know the meaning of an equally-important HVAC term: the “Heating Season Performance Factor,” otherwise known as a unit’s HSPF rating.

When it comes to weather, places like Western Oregon and Western Washington tend to sit right in the middle of things. This area’s periods of hot summer weather are less intense and usually won’t last as long as the Southwest’s, where air conditioning may even be needed year-round. And unlike the Midwest, whose winters last longer and are very cold, Northwest winters are relatively mild. This makes the Northwest an ideal location to install and utilize heat pumps, which perform heating and cooling operations within a single unit depending upon the demands of the weather.

That being said, cooler weather is definitely more prevalent in this area, which makes the HSPF rating potentially more important to consider than the unit’s SEER rating when shopping for a heat pump system. After all, if you expect your heat pump to be warming your home far more often than you expect it to be cooling your home, its HSPF rating could make a greater difference on your utility bills than the unit’s SEER rating.

HSPF is also more important than SEER in the Northwest if you plan on claiming tax credits for purchasing and installing a heat pump system in your home. Oregon’s residential energy tax credit applications for both ductless and traditional air-source heat pumps both currently require the system in question to have a minimum HSPF rating of at least 9.0. In contrast, neither of the applications have a minimum SEER requirement. In an area where summer seems to speed by in the blink of an eye, it’s easy to see why focusing on maximizing your system’s heating efficiency would lead to bigger energy savings.

For those who can’t or aren’t interested in claiming tax credits after purchasing a heat pump system, it’s still a good idea to take a look at the system’s HSPF ratings to anticipate how much energy it will use during heating season. Keep in mind that the lowest HSPF rating available on the market is 7.7, but that trusted HVAC sources like energyvanguard.com recommend buying a heat pump with an HSPF rating of 8.0 or higher if you anticipate your system operating in heating mode the majority of the time.

And of course, just like a professionally, properly installed air conditioner will typically perform truer to its advertized SEER rating, your heat pump is more likely to live up to its advertized HSPF rating if it’s installed by a trained and licensed mechanical contractor like Home Comfort. We’ll help you choose and install the perfect heat pump system for your home.

Energyvanguard.com, “Know Your Terms – Heat Pump Efficiency Ratings SEER & HSPF”Works Cited

www.oregon.gov, “Heat Pump Systems”

www.oregon.gov, “2013 Residential Energy Tax Credit Rates”