Good questions when:

Considering an Air Source Heat Pump

• Is there a tax credit available for air source heat pumps?

• Yes.

• What are the requirements to get a tax credit for an air source heat pump?

• 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?

• 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?

• 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?

• 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.