[epructions In page es pstructiat bee the. L 8 t ens ener and to give you credit for the steps you take to reduce energy consumption in your home. The Energy Policy Act of 2005 provides valuable tax credits—as much as $300 to consumers who purchase qualified high-efficiency heating, cooling and water-heating equipment. These new tax credits took effect in January 2006. Unlike a tax deduction, which reduces the amountof incomesubject to tax, a tax credit directly reduces the amount of federal income tax you pay or increases the tax refund you receive. The new energy legislation defines the type of equipment and the amount of the credit in this way: High-efficiency gas, oil and propane furnaces andboilers: $150 High-efficiency central airconditioning units, including airsource and ground-source heat pumps: $300 High-efficiency fans for heating and cooling systems: $50 High-efficiency water heaters, including heat pump water heaters: $300. Manufacturers and retailers should be able to tell homeowners whether a specific product qualifies for a tax credit. Qualifying efficiencies identified in the bill include: Furnaces and boilers: Annual Fuel Utilization Efficiency (AFUE) of 95 or higher Air-source heat pumps: Heat- ing Seasonal Performance Factor (HSPF) of 9 or greater, Seasonal Energy Efficiency Ratio (SEER) of 15 or higher and Energy Efficiency Ratio (EER)of 18 or higher Central air-conditioning units: SEER of 15 and EERof 12.5. Unlike a tax deduction, which reduces the amount of income subject to tax, a tax credit di- rectly reduces the amountof fed- eral income tax you pay. In addition to providing tax credits, these high-efficiency products also offer homeowners lower home energy bills, increased indoor comfort and reduced air pollution. That’s because this new equipment employs technologies that make new heating systems much more energy efficient than the furnace or heat pump currently warming your home. The maximum credit for all taxable years is $500 and is applicable to other home energyefficiency improvements, including the installation of new windows, insulation, doors and roofs. To qualify for the tax credits, homeowners will need to verify the efficiency of the equipment and the date when it was placed in service. The equipment must be installed between January 1, 2006, and December 31, 2007. Coleman heating, ventilation and air-conditioning products manufactured by Johnson Controls meet the efficiency specifications set forth in the new energy bill. To learn more about the energy-efficient Echelon™ Series of air conditioners, heat pumps and furnaces, visit www.colemanac.com.
