Considering Central AC

Contributed by QuestionSense Editors

Is there a tax credit available for central air conditioning under the stimulus bill?
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Yes.
What are the requirements for a central air conditioner to get the tax credit?
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Central air conditioners that meet the following requirements qualify for a tax credit of 30% of the cost (including installation), up to $1,500:

Split Systems: SEER >= 16 & EER >=13
Package systems: SEER >= 14 & EER >= 12
Huh?
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SEER, Seasonal Energy Efficiency Ratio, is most commonly used to measure the efficiency of a central air conditioner. It measures how efficiently a cooling system will operate over an entire season. The higher the SEER, the more efficient the air conditioner. Technically speaking, SEER is a measure of equipment 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) is a measure of how efficiently a cooling system will operate when the outdoor temperature is at a specific level (95oF). In technical terms, EER is the steady-state rate of heat energy removal (i.e. cooling capacity) by the product measured in Btuh divided by the steady-state rate of energy input to the product measured in watts. This ratio is expressed in Btuh/watt. The higher the EER, the more efficient the air conditioner.
Do ductless central air conditioners (sometimes called mini splits)qualify for the tax credit?
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Yes, as long as they meet the criteria. Central air conditioners must have a SEER of 16 or greater and an EER of 13 or greater.
Are installation cost 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.