High Efficiency + Tax Credits = Savings

What if you could make home improvements that increase your comfort, lower your energy costs, add value to your home, and do something good for the environment? And what if you could get some money back from Uncle Sam at the same time?  Call us… we can show you how!

Updated Tax Incentives for Homeowners

Part of the tax extender bill passed by Congress in December 2010 made significant changes to tax incentives for federal taxpayers who install qualified energy efficient retrofits in their home, including higher efficiency heating, ventilation, and air conditioning (HVAC) equipment in their primary residences. An eligible taxpayer may claim up to $500 in tax credits, subject to caps based on the type of equipment installed.

You may now qualify for tax credits equal to 10% of the costs (up to a $300 limit) for installing a high efficiency central air conditioner, heat pump, or hot water heater. You may also qualify for tax credits equal to 10% of the costs (up to $150 limit) for installing a qualified furnace or hot water boiler. A smaller tax credit of 10% of the installed costs (up to $50 limit) is available for installing a system with an advanced main air circulating fan.

But you have to hurry because these tax credits are only available for improvements made in 2011. Not taking advantage of this incentive just leaves money on the table.

What Is Considered a High Efficiency Unit?

A split system central air conditioner must meet or exceed 16 SEER and 13 EER; package system central air conditioners must meet or exceed 14 SEER and 12 EER.

An air source heat pump must meet or exceed 15 SEER and 12.5 EER and 8.5 HSPF, in order to qualify for the tax credit. Package heat pump systems must meet or exceed 14 SEER and 12 SEER and 8 HSPF.

Natural gas furnaces, propane furnaces, natural gas hot water boilers, propane hot water boilers, oil furnaces, and oil hot water boilers all must meet or exceed 95% AFUE.

If I claimed more than $500 in tax credits under the previous tax credit programs, am I still eligible?

No. The new law reinstates the lifetime tax credit limits, which disqualify any homeowner who has claimed more than $500 in 25c tax credits since January 1, 2005, from any further credits.

Why You Should Consider an Upgrade

Advances in technology over the last ten years mean that today’s higher efficiency HVAC equipment uses less energy, runs more quietly, and provides improved indoor air quality and comfort. And by using less energy and improved refrigerants, your new HVAC equipment is better for the environment.

Most homeowners would like to reduce their energy bills with higher efficiency HVAC equipment, and these tax credit help make the initial investment more affordable. We can help you select the right qualified equipment that meets your budget, and show you how much you could save over the long term.

Note: Every taxpayer’s situation is different. We can’t guarantee eligibility, but we can help you figure out what equipment qualifies and how it can work for your comfort, health, and pocketbook.

Xcel Energy High Efficiency Cooling Rebates

Rebates available up to $1,000

The High Efficiency Cooling Rebate program is designed to generate maximum energy savings for you by focusing on proper installation practices. Bigger is not always better – participating Xcel Energy contractors are expected to size your new cooling equipment appropriate to your home’s needs. You deserve the optimal energy efficiency your new air conditioner was designed to provide, and our participating registered contractors can help you do this by performing a quality installation. In addition, you can earn up to $1,000 cash back!

Earn two rebates:

1. $500 for trading in your old qualifying AC unit
2. Up to $500 in additional rebates for installing a new qualifying unit

Note: Customers who trade-in an old unit for a 14.0 – 14.49 SEER system will receive only the trade-in rebate and are not eligible for the new equipment rebate.

New Equipment Rebate Eligibility

The installation property must be located in Colorado and receive residential electricity service from Xcel Energy to qualify for the rebate. Rebates are given only to customers whose central air conditioner was installed by a contractor who is a registered participant in Xcel Energy’s cooling program.

• Eligible equipment must be installed between January 1, 2011, and December 31, 2011, and applications must be postmarked no later than July 31, 2012.
• Please note that window units, ductless mini-split systems (AC and heat pumps) and rooftop units do not qualify for Xcel Energy rebate programs.

Xcel Energy uses ahridirectory.org to verify all AC and ASHP equipment. Coil and condensers that do not match per AHRI do not qualify for rebates. There is no limit to the number of AC rebates per home. If you install two air conditioners, you can submit two forms.

Please read the full program details.

Trade-In Equipment Eligibility

Residential Central Air Conditioning units being replaced that do not meet the following qualifications are not eligible to receive the trade-in rebate.

• The SEER of the trade-in unit to be replaced must be determined from information on the condensing unit. The following information is required:
  • Make, model and serial number of the condensing unit.
  • Unit SEER and/or EER rating as given by the manufacturer.
  • The maximum qualifying SEER rating for the trade-in unit is 12 SEER (can be lower).
  • If the condensing unit information cannot be determined by the HVAC contractor, the AC unit will not qualify for the AC Trade-In rebate.
• The replaced (trade-in) AC unit is either operable or needs repair or replacement of components to become operable. The estimated range for repair is $500 to $1,500.
• The new system (replacing the retired unit) must meet the following criteria:
  • Minimum efficiency of SEER 14. Please note that a new 14 -14.49 SEER AC units are eligible for the Trade In rebate but are not eligible for the new equipment rebate.
  • Installed by an Xcel Energy registered contractor. Click on the “Find a registered contractor” link below.
  • All other criteria, as stated on the back of the appropriate Central AC/ ASHP rebate form (click on full program details above to see the back of the rebate form). These forms are only available from a registered contractor.

1. Read through all the program materials
2. Call Quality West to help you select the best system for you and your home.
3. Schedule installation of your system and have a Quality West technician test it at start up.
4. Only registered contractors have rebate applications which must be completed using data gathered during startup testing.

Your rebate will take at least six weeks to process after the application has been submitted. Rebate applications are processed individually; you will receive one check per application if approved. If you submit more than one rebate per envelope, you will most likely receive the rebate checks at different times.

Don’t Worry…..our Quality West team will handle all the documentation required to process your application for the Xcel Rebates!  All you have to do is mail it in!