| The government often tries to influence our | | | | homeowner into buying an energy efficient |
| behavior through taxes. The tax credit for new | | | | air-conditioner. |
| energy efficient cooling systems in our homes is | | | | Of course, not all air conditioners are eligible for a |
| one example. | | | | tax credit. Even, not all Energy Star air |
| As part of the provisions in the Energy Policy Act | | | | conditioners qualify, only some do. Very efficient |
| 2005, homeowners are entitled to claim tax | | | | central air conditioners qualify for the tax credit if |
| credits on use of a few energy saving items. | | | | they meet the following criteria: |
| They include the use of energy saving windows, | | | | 1. The Energy Efficiency Ratio has to be 13.0 or |
| doors, roofing, furnace and boiler, water heater | | | | higher (in some states its 12.5). |
| and air conditioner. As energy becomes scarcer | | | | 2. Certified technician needs to install the |
| by the day, it is essential to conserve as much | | | | equipment. |
| energy as possible. The government, by way of | | | | 3. The Seasonal Energy Efficiency Ratio (SEER) |
| giving tax credits, also encourages using alternate | | | | has to be 15. |
| sources of energy. | | | | SEER measures performance throughout the |
| Using energy efficient air conditioning systems is | | | | season and EER measures performance on a |
| one of the items that qualify for tax credit. | | | | very hot day. Central Air conditioning systems |
| Individuals who install this type of air conditioner | | | | must meet the standards set by the Consortium |
| are eligible for a tax credit of up to $300. The | | | | of Energy Efficiency (CEE). The specifications for |
| models that qualify are obviously costlier than the | | | | each state vary slightly. |
| ordinary ones. However, this calculation would | | | | The tax credit for energy efficient cooling |
| show that it is advisable to install a new energy | | | | systems in our home is just another step in |
| saving air conditioner. Even if you save just $10 a | | | | saving money on both your energy bill and taxes. |
| month on average by way of electricity bills it | | | | Since tax credits are reduced from the actual |
| comes to $120 for a year. Add to that the tax | | | | amount of tax you owe, not your gross income, |
| credit of $300, your net saving is $420. This | | | | you should strongly consider taking advantage of |
| amount should be good enough to prod a | | | | this one. |