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2014 Energy Tax Credits

May 3, 2014 by HVAC Expert

2014 Tax Credits for Energy Efficiency   By Betty Stephens

2014
February 26 was a watershed moment for the federal historic tax credit and the campaign to save it. On that day, Dave Camp (R-Mich.), chairman of the House Ways & Means Committee, released a discussion draft of his vision for a comprehensive tax that would eliminate the federal historic tax credit. The House Ways and Means Committee Chairperson released draft legislation, the Tax Reform Act of 2014, proposing a wide variety of changes to America’s tax system.
Residential Energy Efficient Property Credit – Proposed Repeal
The tax credit for energy-efficient property is for homeowners who install solar panels, solar-powered water heaters, geothermal heat pumps, small wind energy systems, and fuel cells in their home. This credit is worth 30% of the cost of the equipment, including any labor expenses to install the equipment. This tax credit is currently scheduled to expire at the end of 2016. The Tax Reform Act proposes to repeal the Residential Energy Efficient Property Credit beginning with year 2015. This would increase tax revenues by $2.3 billion over 2014-2023, according to estimates provided by the Joint Committee on Taxation.
Repealing Expired Tax Credits
The Tax Reform Act proposes to repeal the following tax credits that have already expired by the end of 2014. Repealing these tax credits would neither increase nor decrease tax revenues for the Federal Government. These tax credits are as follows:
• Nonbusiness Energy Credit
• Credit for electric vehicles
• Credit for alternative motor vehicles (such as fuel cell vehicles, hybrid vehicles, advanced lean burn technology vehicles, and other alternative fuel vehicles)
• Credit for Alternative Fuel Vehicle Refueling Property
• Health coverage tax credit
• First-time homebuyer tax credit
The Ways and Means Committee did not offer any reasons for why these tax credits should be repealed.
House Tax Proposal Alters Biofuel, Bioenergy Tax Credits
Section 3202 of the bill would repeal credits associated with biodiesel and renewable diesel. The biodiesel fuel-mixture credit, the biodiesel credit and the small agri-biodiesel producer credit, all of which expired at the end of 2013, would be repealed.
Tax credits benefiting the bioenergy sector would also be impacted by the proposal. According to a bill summary released by the House Ways and Means Committee, Section 3206 of the bill would phase out and eventually repeal the credit for electricity produced from certain renewable resources, including closed-loop biomass and open-loop biomass. Under current law, the production tax credit (PTC) is 1.5 cents per kWh, indexed for information. The summary said the amount of the credit was generally 2.3 cents per kWh in 2013. Under Section 3206 of the draft bill, the inflation adjustment of the PTC would be repealed, revering the PTC amount back to 1.5 cents per kWh. The credit would be repealed in 2024.
The National Trust Response
The National Trust and its partners in preservation and allied fields have been working hard to raise awareness of the threat to the historic tax credit posed by Congressional tax reform. These events served as an affirmation that this work is more important than ever.
While Chairman Camp’s discussion draft is unlikely to reach the President’s desk, his proposal to repeal the historic tax credit represents an unprecedented threat to the program. The Chairman’s proposal for comprehensively reforming the tax code very easily could, for example, serve as a basis for future tax reform efforts. The National Trust joined the Historic Tax Credit Coalition and Rep. Earl Blumenauer (D-Ore.) in immediately responding to the plan, calling for the survival of the historic tax credit in a reformed tax code.

Filed Under: Cooling, Heating, How to save money!, Residential, Residential, Tools of the Trade Explained Tagged With: 2014 Energy Tax Credits, A/C system tax credits, Tax Credits

AHRI

September 20, 2013 by HVAC Expert

Air-Conditioning Heating and Refrigeration Institute (AHRI)
By Betty Stephens

AHRI

What is AHRI?
AHRI is a trade association of manufacturers and maintains and publishes over 80 standards, mainly related to equipment performance, and many AHRI standards are accepted as ANSI (American National Standards Institute) standards. AHRI’s rating standards, when teamed with ASHRAE’s methods of tests, provide a method to test and rate heating, air-conditioning, ventilation, commercial refrigeration, water heating, boiler and radiant panel equipment.

AHRI Standards and Guidelines are used by designers, manufacturers and installers of air conditioning, heating and refrigeration equipment. They are also used by architects and mechanical engineers to specify equipment.

Background
The Air Conditioning, Heating, and Refrigeration Institute (AHRI), formed in 2008 by a merger of the Air-Conditioning and Refrigeration Institute (ARI) and the Gas Appliance Manufacturers Association (GAMA), is a North American trade association of manufacturers of air conditioning, heating, and commercial refrigeration equipment. The organization performs political advocacy on behalf of its member industries, maintains technical standards, certifies products, shares data, conducts research, and awards scholarships.

Standards
AHRI standards and guidelines are used throughout the world. They stimulate innovation and creation and are the stepping stones to improving product performance.
Through the use of industry standards and voluntary participation in AHRI’s certification programs, consumers can be assured manufacturers’ performance claims are accurate and rated uniformly, enabling fair comparisons. AHRI provides access to its standards and guidelines, as well as information about how they are developed and advanced globally.

Goal
Ensuring human comfort, productivity, and safety, while practicing environmental stewardship is the mission of the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). Their 300 member companies produce more than 90 percent of the residential and commercial air conditioning, heating, water heating, and commercial refrigeration equipment made in North America. Through their certification program, standards, advocacy, and other activities, they strive to help save energy, improve productivity, and ensure a better environment. Link to their official web site: LINK

AHRI Certified Reference Numbers
The AHRI Certified Reference Number (or AHRI Number) is a unique number assigned to equipment by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). The AHRI tests the performance of commercially available equipment, and assigns a unique identifying number to matched equipment that can be used to look up performance information for that equipment.
It’s a good idea to look up equipment information using the AHRI number before installing equipment for any customer who may be participating in Complete System Replacement program. This way, both you and the customer are choosing equipment with the confidence that it is eligible for a rebate.
They suggest you place the AHRI Number on customer invoices for Complete System Replacement-eligible installations. By doing so, you can avoid getting call-back questions from customers who are completing a rebate application, and make the rebate process faster and easier for everyone – including yourself.
The fastest and easiest way to obtain an AHRI Certified Reference Number on your equipment is to go straight to your distributor and request it. Most wholesalers keep a list of AHRI Numbers for the equipment in their inventory, and requesting this number will save you the trouble of looking up these numbers manually.
Rather than requesting AHRI Numbers on a case-by-case basis, you may save yourself time by requesting a full list of AHRI Numbers from your distributor for the HVAC products you carry and keeping this list handy for future Complete System Replacement installations.
Homeowners and AHRI
The Energy Improvement and Extension Act of 2008 (H.R. 1424) extended the section 25D tax credit to geothermal heat pumps, effective January 1, 2008. In February of 2009, the credit was further enhanced by the American Recovery and Reinvestment Act of 2009 (H.R. 1) which removed the maximum credit amount for all eligible technologies placed in service after 2008.

A taxpayer may claim a credit of 30% of total investment for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home.

AHRI is viewed as a resource for industry shipment data, education and workforce information, and research. AHRI is an industry powerhouse, providing members with one industry voice, both domestically and abroad.

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Filed Under: Commercial, Commercial, Cooling, Heating, Residential, Residential, Tools of the Trade Explained Tagged With: A/C, A/C system match ups, A/C system tax credits, AHRI, Air conditioning, Air Conditioning Heating Refrigeration Institute, heating, heating & air conditioning, SEER rating

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