Heating, Ventilation & Air Conditioning You can get a credit on your Oregon income taxes for purchasing energy-efficient HVAC systems for your home: Ductless heat pumps Duct sealing and testing Furnaces and air handlers Heat recovery and energy recovery ventilation equipment Wood and pellet stoves Click on the category to view technical requirements and current lists of eligible equipment.   Important: For heat pump installation and diagnostics, and for duct sealing and testing, we require that an Oregon Department of Energy tax credit technician perform the work.   The tax credit is based on the amount of energy saved above standard models. The tax credit is the amount noted on the list of qualifying equipment.   To qualify for a tax credit, you must have an Oregon income tax liability. If you are an Oregon resident and do not have an Oregon income tax liability, you may choose to transfer your tax credit to an Oregon resident who does. This is done by checking the Pass-through Option section on the application form.

More information is on the form.   To receive your tax credit certification by April 15, please submit your tax credit application to the Oregon Department of Energy by April 1 of the year following your purchase. You may still apply for a tax credit after April 1, but may have to amend your tax filings to claim your credit. 2016 Residential Energy Tax Credit Rates 2015 Residential Energy Tax Credit Rates Selecting a Heating and Cooling System for Your Home  Disclosure information   Radiant-floor heating information   Federal Incentives for Energy EfficiencyThe Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (as extended by the Protecting Americans from Tax Hikes Act of 2015) provides for federal tax credits on qualifying, high-efficiency residential heating and cooling products and systems (HVAC) through December 31, 2016. This program is an extension of the federal tax credits that were in effect during 2009, 2010, and 2011.

The maximum amount an eligible homeowner may receive in federal tax credits for purchasing and installing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, is now 10% of the cost of the improvement, including installation costs, up to $500 (with maximum per-category amounts listed below). The $500 tax credit amount is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2016. If a residential homeowner has already claimed single-family home tax credits of $500 or more from improvements made prior to 2016, he or she cannot claim any new tax credits during 2016. Products or units must be installed between January 1, 2009, and December 31, 2016, to be eligible for tax credits. Line items 6a, 6b, 6c and 7 of IRS Form 5695 “Residential Energy Credits” would be filled out as follows: Download IRS form 5695 for Residential Energy Tax Credit

Review the Daikin Manufacturers Certification Letter See matrix below for all systems that qualify for energy tax credits. The values stated below can be verified and AHRI Certification Numbers obtained by selecting any of the outdoor unit model numbers below.ac power supply frequencyResidential Energy-Efficient Property Credit. car air conditioning repair readingA 30% tax credit for the installation of a ground source heat pump (geothermalac unit wall mount system) with no cap was enacted in 2009. This Tax credit is available through the end of 2016. See an example of geothermal by the numbers including how the tax credit added up. The credit has not been extended beyond 2016. The Tax Credit may be claimed for spending on 'Qualified Geothermal Heat Pump Property' installed in connection with a new or existing dwelling unit

located in the United States and used as a residence by the taxpayer. 'Qualified Geothermal Heat Pump Property' means any equipment which - 1. Uses the ground or ground water as a thermal energy source to heat the dwelling unit or as a thermal energy sink to cool the dwelling unit, and 2. Meets the requirements of the Energy Star program which are in effect at the time the equipment is installed. (Ask your geothermal installer) Labor costs associated with the installation of the geothermal heat pump property and any associated materials (piping, wiring, etc) areThe residence does not have to be the primary residence. Please note that a notice on the IRS website from November 1, 2013, states that the distribution system and emergency heat portions of the system are not covered as part of the federal tax credit. Piping and wiring remain eligible under current guidelines. In this amended description, the IRS states: “Only the cost of the heat exchange equipment in the ground outside the house can be eligible for the § 25D credit.

The costs for the distribution system for the home and a back-up emergency heating or cooling system are not eligible for the credit because they are not incurred for qualified geothermal heat pump property.” The tax credit can be used to offset both regular income taxes and alternative minimum taxes. If the tax credit exceeds the income tax liability, the remaining balance can be carried forward into future years. Homeowner spends $26,000 total to install a new geothermal heat pump system in his/her existing home in 2011. Tax Credit: $26,000 x 30% = $7,800.00. The actual cost the homeowner is $18,200. Many states have extra incentives available in addition to the federal 30%. View State & Local Incentives The credit does not apply on spending for equipment used solely to heat a swimming pool or hot tub. Will my geothermal heat pump be eligible for the ENERGY STAR? Yes, heat pumps with the following specifications (provided by ENERGY STAR support) can earn the ENERGY STAR.

Do a water-to-water geothermal heat pumps qualify for the tax credit?Beginning on December 1, 2009, water-to-water geothermal heat pumps are covered by the tax credit. However, the heat pump in question must have been bought on or after December 1, 2009. Water-to-water heat pumps purchased before this date are not covered. Are all parts of the geothermal heat pump covered by the tax credit? The tax credit is applied to all of the parts that come with the heat pump, as well as the installation of the heat pump and ground loop. The only parts that may not be covered are add-on components that aren't necessarily required for the system to function and duct work or back up heat. Is water heating a necessary element of a geothermal heat pump that qualifies for the tax credit? As of December 1, 2009, no, the heat pump does not have to be used for water heating to qualify. Is a geothermal heat pump installation in my vacation or second home covered by the tax credit?

In fact, geothermal heat pumps are one of the products that are covered by the tax credit when installed in a vacation or second home, along with solar panels, solar water heaters, and small wind energy systems. Am I eligible for the tax credit if I'm installing geothermal in a new home? For many products, the tax credit is only applicable when they're installed in an existing home. However, the tax credit for geothermal heat pumps is applicable for installation in both new and existing homes through 2016. Use Form 5695 for systems installed since Jan. 2009. systems completed in 2008, the maximum tax credit is capped at $2,000. For property placed in service after the start 2009, there's no limit on theThe tax credit can be used to offset both regular income taxes and alternative minimum taxes (AMT). If the federal tax credit exceeds tax liability, the excess amount may be carried forward into future years. Spending on geothermal heat pump property adds to your home's cost basis,

but also must be reduced by the amount of the tax credit received. More Information about Pennsylvania Geothermal as well as other State Geothermal Specifics. Always consult with a tax professional for accurate information on this and any tax code. From the IRS - Link 04. Geothermal Heat Pump Property. Q-31: A taxpayer contacts a seller to inquire about the installation of a geothermal heat pump to heat his home. The seller/installer informs the taxpayer that the following items must be installed in addition to the geothermal heat pump: heat exchange equipment in the ground outside of the house, a distribution system for the home, and a back-up emergency heating or cooling system. Which of these costs, if any, are eligible for the § 25D credit? A-31: Only the cost of the heat exchange equipment in the ground outside the house can be eligible for the § 25D credit. The costs for the distribution system for the home and a back-up emergency heating or cooling system are not eligible for the credit because they are not incurred for qualified geothermal heat pump property.

Section 25D(d)(5)(B) defines qualified geothermal heat pump property as any equipment that (1) uses the ground or ground water as a thermal energy source to heat the dwelling unit or as a thermal energy sink to cool such dwelling unit, and (2) meets the requirements of the Energy Star program in effect at the time that the expenditure for such equipment is made. Section 25D(e)(1) provides that expenditures for piping and wiring to interconnect qualified property to a dwelling unit are eligible for the § 25D credit. However, nothing in § 25D extends the credit to other auxiliary equipment such as distribution systems within the dwelling un it or backup emergency heating and cooling systems.Both the § 25C credit and the § 25D credit are nonrefundable personal tax credits. A taxpayer claiming a nonrefundable credit can only use it to decrease or eliminate aA taxpayer will not receive a tax refund for any amount that exceeds the taxpayer’s tax liability for the year. Q-3: May a taxpayer carry forward unused credits to another tax year?