Considering an Air Source Heat Pump

Contributed by QuestionSense Editors

Is there a tax credit available for air source heat pumps?
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Yes.
What are the requirements to get a tax credit for an air source heat pump?
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In order to qualify air source heat pumps must meet the following criteria:
Split Systems:
HSPF >= 8.5
EER >= 12.5
SEER >= 15

Package systems:
HSPF >= 8
EER >= 12
SEER >= 14
Huh?
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Heating Seasonal Performance Factor (HSPF): This is a measure of a heat pump's energy efficiency over one heating season.

Seasonal Energy Efficiency Ratio
(SEER): This is a measure of equipment energy efficiency over the cooling season. It represents the total cooling of a central air conditioner or heat pump (in Btu) during the normal cooling season as compared to the total electric energy input (in watt-hours) consumed during the same period.

Energy Efficiency Ratio (EER): This is a measure of the instantaneous energy efficiency of cooling equipment. EER is the steady-state rate of heat energy removal (e.g., cooling capacity) by the equipment in Btuh divided by the steady-state rate of energy input to the equipment in watts. This ratio is expressed in Btuh per watt (Btuh/watt).
Are installation costs covered by the tax credit?
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Installation costs ARE COVERED for:

* HVAC (Heating, Ventilation and Air Conditioning) systems
* Biomass Stoves
* Water Heaters (including solar)
* Solar Panels
* Geothermal Heat Pumps
* Wind Energy Systems
* Fuel Cells

The tax credit for HVAC, biomass stoves, and non-solar water heaters is 30% of the total cost (product + installation) up to $1,500. The law specifies installation costs include: "expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property."
What is the maximum tax credit I can get for the energy efficient home improvements?
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Many of the energy efficiency tax credits are limited to $1,500 combined total for 2009 and 2010. The $1,500 maximum tax credit covers insulation, windows & doors, roofs, HVAC, biomass stoves, and non-solar water heaters.