January 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!