Arkansas HVACR NewsMagazine September 2021

HVACR NewsMagazine September 2021

State National Chapter News

also be noted that these credits are due to expire December 31, 2021 Tax Credit: 10% of cost up to $500 or a specific amount from $50-$300. Expires: December 31, 2021 Details: Must be an existing home & your principal residence. New construction and rentals do not apply.

Tax Credits for High Efficiency Systems

OK! Let’s start with the same thing stated by Energy Star at https://www.energystar.gov/about/fede ral_tax_credits * Disclaimer: The tax credit information contained within this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS) I figure if Energy Star with all their money and political connections can’t unequivocally state a tax credit, neither can the NewsMagazine; however, it certainly gives one the information needed to pursue it with their tax professional. Here’s the deal according to Energy Star and IRS publications. Many of your high efficiency installations can quality for a homeowner federal tax credit. We’ll list them with the website you can use to verify. https://www.energystar.gov/about/fede ral_tax_credits/non_business_energy_pr operty_tax_credits It should also be noted that we are only including information for primary residences. The tax credit appears to be 10% of the cost up to a maximum of $500. However, there also appears to be a maximum based on the system installed. That amount is stated in the following listings. Also, it appears that you are limited to a maximum based on whatever you declared since 2005. So if you claimed $500 in the past, you would not be eligible to claim anything for this year. It should

Air Source Heat Pumps Tax Credit Amount: $300

Requirements Split Systems:

HSPF >= 8.5 EER >= 12.5 SEER >= 15 Package systems:

HSPF >= 8 EER >= 12 SEER >= 14

Air Conditioners Tax Credit Amount: $300

Requirements Split Systems:

SEER>= 16 EER >= 13 Package systems: SEER >= 14 EER >= 12 Gas Furnaces Tax Credit Amount: $150 Requirements AFUE >= 95

There is a caveat with gas furnaces. Energy Star states, “ Gas furnaces that are ENERGY STAR certified (except those for U.S. South only) …” This includes Arkansas. It appears that even though the counties in North / Northwest Arkansas that are in climate zone 4, they are still excluded. One could research that to see if there is an exception to their definition. We have not been able to make that determination.