Federal Tax Credits - Air Source Heat Pumps

Air Source Heat Pumps Heat pumps offer an energy-efficient alternative to furnaces and air conditioners in moderate climates. Like your refrigerator, heat pumps use electricity to move heat from a cool space into a warm, making the cool space cooler and the warm space warmer. During the heating season, heat pumps move heat from the cool outdoors into your warm house; during the cooling season, heat pumps move heat from your cool house into the warm outdoors. Because they move heat rather than generate heat, heat pumps can provide up to 4 times the amount of energy they consume. Tax Credit: 30% of cost up to $1,500 Expires: December 31, 2010 Details: Must be an existing home and your principal residence. New construction and rentals do not qualify. Requirements Split Systems: HSPF ≥ 8.5 ; EER ≥ 12.5 ; SEER ≥ 15 Package systems: HSPF ≥ 8 ; EER ≥ 12 ; SEER ≥ 14 Tax Credit includes installation costs. Definitions:

• EER (Energy Efficiency Ratio) - The higher the EER rating, the more energy efficient the equipment is. This can result in lower energy costs. This DOE site can show how to calculate potential energy cost savings of a more efficient unit.
• HSPF (Heating Seasonal Performance Factor) - rates the efficient operation of the heating portion of the heat pump. As the HSPF increases, the unit functions at a more efficient level. New units in the US have HSPF ratings from 7.0 to 9.4.
• SEER (Seasonal Energy Efficiency Ratio) - The higher the SEER rating, the more energy efficient the equipment is. A higher SEER can result in lower energy costs.
• Split System & Package System - A central air conditioner (or heat pump) is either a split-system unit or a packaged unit. The majority of consumers have split systems in their homes. A split-system central air conditioner has 3 components:
  • an outdoor metal cabinet that contains the condenser and compressor
  • an indoor cabinet that contains the evaporator coil
  • an air handler, that in most cases is part of the furnace or heat pump, that sends the cool air through the duct system
  If your home already has a furnace but no air conditioner, a split-system is the most economical central air conditioner to install. A packaged central air conditioner has the evaporator coil, condenser, and compressor all located in one cabinet, which usually is placed on a roof or on a concrete slab next to the house's foundation. This type of air conditioner also is used in small commercial buildings. Air supply and return ducts come from indoors through the home's exterior wall or roof to connect with the packaged air conditioner, which is usually located outdoors. Packaged air conditioners often include electric heating coils or a natural gas furnace. This combination of air conditioner and central heater eliminates the need for a separate furnace indoors.

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