our opinions: ADVICE FROM AN EXPERT
In The
Comfort
Zone
Energy Tax Credits soon to expire;
Don’t miss out if you’re shopping for a
new HVAC system
Brett Hobson
By BRETT HOBSON
CEO Comfort Experts
T
92
he bipartisan budget act of 2018 was signed into
law in February of this year to continue encour-
aging homeowners to purchase high-efficiency
Energy Star-rated systems. If your family is consid-
ering a new HVAC system for your home, you
want to make that purchase soon to be able to put
some money back in your pocket in the form of a
tax credit. In order to be eligible for the credit, the
system must be in place and operational by Dec.
31, 2018.
These residential energy tax credits were set to
expire in 2016, but were renewed by Congress.
The savings can be up to 30 percent and include
new traditional HVAC systems as well as solar and
geothermal systems.
The tax credit is even more valuable than the
more familiar tax deduction. Here’s why, according
to the IRS: Both tax credits and tax deductions can
help you reduce the amount of tax that you have to
pay. I know plenty of people who search high and
low for any deduction they can qualify for, but they
should be looking for tax credits instead. Tax credits
provide a dollar-for-dollar reduction of your income
tax bill. If you have a $1,000 tax credit, that’s
$1,000 you deduct from the amount of taxes you
owe. Tax deductions lower your taxable income and
depend on which tax bracket you fall into. If you are
in the 25-percent tax bracket and you have the same
$1,000 deduction, your tax savings would only be
$250 (.25 x 1000). So, a $1,000 credit is worth four
times more than the equivalent deduction if you are
in this bracket.
Not everything will qualify for the tax credit.
The system that is installed in your home must be
Energy Star certified. There are many things that
carry this certification, everything from appliances to
office equipment, so be sure and talk to your service
company and make sure they install a certified
system.
If you are purchasing a new home, ask your
builder if the home that you are considering is
Energy Star rated. As a homeowner this can mean
up to $250 a month less in your monthly bills. The
Energy Star rating on an entire home has a host of
benefits including better durability, better comfort as
well as reduced utility and maintenance costs. This
is accomplished by the home being 10 percent more
energy efficient than the current building codes
require.
With more than half of your monthly energy bill
going to paying for heat or air conditioning, choos-
ing an Energy Star certified system can have a large
impact on your comfort and on your wallet.
Call us and we can discuss what kind of system
might work best for you and your family and how
much it can save you on this year’s tax bill. Whether
it’s a traditional system or one using the North Texas
sunshine, we want to help you cut your tax bills and
provide you with an energy efficient system that will
keep your home comfortable for years to come.
From all of us, have a very Merry Christmas,
Happy Holidays and a wondrous New Year!