Is there any way to get the tax credit by doing this?
Page 1 of 2 12 LastLast
Results 1 to 13 of 20
  1. #1
    Join Date
    Apr 2009
    Location
    WV
    Posts
    75

    Is there any way to get the tax credit by doing this?

    I have a Rheem A/C unit only downstairs coupled with a Rheem 80% gas furnace. The evaporator coil has a leak that the tech said is not repairable. The units are original with the house built in 1996. I'm sure the furnace has many years of life left. What I want to do is change out the A/C only with a heat pump, such as Carrier's Performace 15 series with matching indoor coil and use the furnace only when it is say below 32 degrees. Do you think I have a chance of this qualifying for the tax credit without changing or modifying the furnace blower? I thought I read somewhere on here that you may have to change the furnace blower motor to a variable speed unit. If it was your house would you go ahead and change out the furnace at the same time even though there is some life left in it?

  2. #2
    Join Date
    Jun 2007
    Location
    The Twilight Zone
    Posts
    2,964
    A heat pump must meet 15 SEER and 12.5 EER and 8.5 HSPF to qualify. All 3 must be met.

    How will you get a manufacturers' certificate that rates the efficiency of a new heat pump condenser and coil with your old furnace? You probably won't.

    The only way to get the tax credit in your case is to replace the furnace, condenser, and indoor coil with a certified match.

    Take care.

  3. #3
    Join Date
    Jan 2009
    Location
    Keokuk, IA
    Posts
    5,520
    To qualify for hte tax credit, the air handler/furnace also has to match along with the indoor coil and outdoor unit.

    You won't find a qualifying match without newer furnace or air handler with a high efficiency ECM motor.

    Best ot chang eout hte furnace at the same time. 12 years old is marginal... but tax credit makes it worth while.


    Make sure both get sized correctly... don't just let the contractor get hte same size you have now. Inprovements to insulation, new windows and other factors cna change the indoor loads. Many units aren't sized correctly but the original builder either.

    Bigger is NOT better.

  4. #4
    Join Date
    Nov 2008
    Location
    Chapel Hill, NC
    Posts
    1,070
    To get the tax rebate, someone must test and certify the system meets the requirements. Unfortunately, manufacturers are not going to test their current HP/coil combos with their discontinued furnaces/air handlers, let alone someone else's. So, no, you won't be able to get the necessary certification.

    On the other hand, the chances of you getting audited on this are slim to zero. In the words of Dirty Harry, "Do you feel lucky?"

  5. #5
    Join Date
    Jun 2007
    Location
    The Twilight Zone
    Posts
    2,964
    Quote Originally Posted by sktn77a View Post
    On the other hand, the chances of you getting audited on this are slim to zero. In the words of Dirty Harry, "Do you feel lucky?"
    My thoughts exactly.

  6. #6
    Join Date
    Jan 2009
    Location
    Keokuk, IA
    Posts
    5,520
    Quote Originally Posted by gary_g View Post
    My thoughts exactly.
    Not a bad idea. Have the $1500 or whatever amount handy, then just act like you didn't understand the requirements. As long as you were getting a return anyway, or are under the penalty limit, and have no real intent of defrauding the IRS, then oh well.

    It's tempting to do. Especially if you're like me and bought a "16 SEER" heat pump with a 15.25 SEER rating and 8.5 HSPF... but falls short by 0.5 EER. Hey...it met 2 out of 3... so maybe I can claim 2/3rds of the credit.

    I'll see if my accountant next year is willing to roll the dice on it.

  7. #7
    Join Date
    Jun 2007
    Location
    The Twilight Zone
    Posts
    2,964
    Quote Originally Posted by motoguy128 View Post
    Not a bad idea. Have the $1500 or whatever amount handy, then just act like you didn't understand the requirements. As long as you were getting a return anyway, or are under the penalty limit, and have no real intent of defrauding the IRS, then oh well.

    It's tempting to do. Especially if you're like me and bought a "16 SEER" heat pump with a 15.25 SEER rating and 8.5 HSPF... but falls short by 0.5 EER. Hey...it met 2 out of 3... so maybe I can claim 2/3rds of the credit.

    I'll see if my accountant next year is willing to roll the dice on it.
    "Defraud" is such a harsh word. I prefer "stretching", or being "creative"

    Is the IRS going to check the data plate of your system for model numbers? The AHRI cert for SEER/EER/HSPF? The invoice to see what you paid? No, no, and no.

  8. #8
    Join Date
    Apr 2008
    Location
    Northwest Arkansas via Chicago Area via Straight Up from There on Lake Superior
    Posts
    1,411
    Quote Originally Posted by gary_g View Post
    "...

    Is the IRS going to check the data plate of your system for model numbers? The AHRI cert for SEER/EER/HSPF? The invoice to see what you paid? No, no, and no.
    Hmmm. Now what is the chance of a random IRS audit on this item?

  9. #9
    Join Date
    Jun 2007
    Location
    The Twilight Zone
    Posts
    2,964
    Question:

    Quote Originally Posted by jerryd_2008 View Post
    Hmmm. Now what is the chance of a random IRS audit on this item?
    Answer:

    Quote Originally Posted by sktn77a View Post
    On the other hand, the chances of you getting audited on this are slim to zero. In the words of Dirty Harry, "Do you feel lucky?"
    Take care.

  10. #10
    Join Date
    Jan 2009
    Location
    Keokuk, IA
    Posts
    5,520
    Quote Originally Posted by gary_g View Post
    "Defraud" is such a harsh word. I prefer "stretching", or being "creative"

    Is the IRS going to check the data plate of your system for model numbers? The AHRI cert for SEER/EER/HSPF? The invoice to see what you paid? No, no, and no.

    I have a certificate... I simply "misunderstood" that it needed to also meet the EER rating. Even my HVAC installer was confused by this...as are most in my town. OS why shouldn't I be confused too?


    OTOH... maybe I can have my installer swap out the XL16i and 4 ton coil with a qualifying XL15i with a qualifying 2.5 ton coil. If he'll swap it for less than 30% of the replacement cost.... I might be in a win-win situation. I'll get a system that overall functions better... and he has a slightly used XL16i heat pump and 4 ton coil he can sell cheap to someone.

    But alas... I''m stuck with what I have now.

  11. #11
    Join Date
    Apr 2008
    Location
    Northwest Arkansas via Chicago Area via Straight Up from There on Lake Superior
    Posts
    1,411
    Quote Originally Posted by gary_g View Post
    Question:
    Quote:
    Originally Posted by jerryd_2008 View Post
    Hmmm. Now what is the chance of a random IRS audit on this item?

    Answer:
    Quote:
    Originally Posted by sktn77a View Post
    On the other hand, the chances of you getting audited on this are slim to zero. In the words of Dirty Harry, "Do you feel lucky?"

    Take care.
    Gary, I love people with a vibrant faith. But after recent interesting, though exhausting, discussions with both the Fed's and the State on various tax matters, my faith is weak. By the way, you are required to keep a copy of the manufacturer's cert which usually references the AHRI cert based on SEER, EER and HSPF.

    PS: I am thinking about retaining sktn77a as my tax adviser, but can't find the "tax rebate" he refers to.

  12. #12
    Join Date
    Apr 2008
    Location
    Northwest Arkansas via Chicago Area via Straight Up from There on Lake Superior
    Posts
    1,411
    Quote Originally Posted by motoguy128 View Post
    I have a certificate... I simply "misunderstood" that it needed to also meet the EER rating. Even my HVAC installer was confused by this...as are most in my town. OS why shouldn't I be confused too?...
    Gary, for those that are still confused: http://www.energystar.gov/index.cfm?...tax_credits#c3

  13. #13
    Join Date
    Apr 2009
    Location
    WV
    Posts
    75
    Quote Originally Posted by gary_g View Post
    A heat pump must meet 15 SEER and 12.5 EER and 8.5 HSPF to qualify. All 3 must be met.

    How will you get a manufacturers' certificate that rates the efficiency of a new heat pump condenser and coil with your old furnace? You probably won't.

    The only way to get the tax credit in your case is to replace the furnace, condenser, and indoor coil with a certified match.

    Take care.
    Even if it doesn't qualify for the tax credit, it should be much more efficient than straight gas for heat in my opinion. Is it even possible to use the blower in my old furrnace with the Performance 15 heat pump and matching coil assuming I stay with the same size? The current A/C only unit is 2 ton. Our heating season is about the same as the cooling season here. My upstairs unit is a 2.5 ton HP unit only with backup heat strips and seems to be working fine. If a new heat pump and coil will work with the old furnace and doesn't qualify for the tax credit, maybe I should just go with a basic 13 seer unit?

    Thanks for your replies.

Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Comfortech Show Promo Image

Related Forums

Plumbing Talks | Contractor Magazine
Forums | Electrical Construction & Maintenance (EC&M) Magazine
Comfortech365 Virtual Event