Understanding Florida Tax Credits for a New AC Unit

As the blazing hot summer months quickly approach South Florida it is important to make sure that your home’s air conditioning system is up to date and running smoothly.  If your home system is outdated or not running properly it may be time to consider a new AC unit for your home.  

Upgrading to a new air conditioning unit can seem like a major investment.  In some cases it may be best to have a professional come and service your home AC unit.  However, there is no better time than now to invest in a new air conditioning unit.  There are plenty of government tax credits and rebates available to help you finance the installation of your new air conditioning unit.  A new AC unit will not only create a comfortable and cool environment for your family, but it will also boost the value of your home. 

Understanding tax credits 

Homeowners who are looking to install a new AC unit can receive financial support in the form of tax credits and rebates from both the State and Federal governments, especially those eyeing energy efficient models.  With a broad range of incentives homeowners can rest easy knowing there are many programs aimed to reduce costs and reduce tax liabilities. These tax credits have the goal of incentivizing Florida homeowners to invest in energy efficient air conditioning units.  By investing in an energy efficient air conditioning unit for your home you can reduce your carbon footprint while enjoying the offset costs of a new air conditioning unit.  

The Energy Efficient Home Improvement Credit  

This home improvement credit is offered to Florida homeowners looking to replace their air conditioning unit. This credit is equal to 30% of the sum of the amount paid by the taxpayer towards expenses from the installation of your new air conditioning unit. It is important to know that this credit has an annual limit of $3,200 and some restrictions apply.  

Florida HVAC Rebates 

A rebate is different from a discount as a discount applies as a reduction at the point of sale and a rebate comes as a refund after the purchase.  The state of Florida offers specific rebates for those in areas such as Boca Raton, Englewood, and Venice for example.  These rebates are designed to encourage homeowners to invest in eco-friendly cooling options.  Those purchasing units that qualify can enjoy up to $150 in rebates.  Units covered in this program include both indoor and outdoor A/C units. New unit must have a SEER rating of 16 or 17. 

Home Owner Managing Energy Savings (HOMES): Rebate Program

This rebate program comes from the Inflation Reduction Act.  This program offers rebates for any energy efficiency upgrade done to a home that decreases the energy consumption levels.  This includes upgrading to a new energy efficient air conditioning unit. This program can provide Florida homeowners with up to $4,000 in rebates for upgrades.  You must act fast, this program expires at the end of June.  

Choosing an Energy Efficient Air Conditioning Unit  

An important detail to keep in mind when purchasing a new AC unit is the unit’s SEER rating.  A general ground rule is, the higher the SEER rating, the more efficient the air conditioning unit will be.  Most air conditioners have a SEER rating between 13 or 25. Air conditioning units with a SEER rating of 16 or higher are considered to be high efficiency units, and top of the line units tout a SEER rating of 26. Upgrading to an energy efficient air conditioning unit not only offers you discounts at purchase, it also serves as an investment by reducing your energy bills and upgrading the value of your home. 

Installing Your New Unit

When you choose All Year Cooling you get the best installation process experience available.  On the day of your scheduled installation, our team of professionals will walk you through the step by step process and you will meet the team.  To install your new unit, first your old unit must be removed. This is done by cutting the electricity to the unit by turning off the circuit breaker, this must be done to EPA standards.  Next the unit’s wiring is cut and the unit is removed, opening a space for the new unit.  The new air conditioning unit can now be installed, changes to the area may need to be made to ensure that the unit fits properly. Next, components such as the old evaporator coil must be disconnected and removed and old copper lines must also be removed.  Following that a new evaporator coil is installed with new copper lines.  These copper wires play an important role in keeping your system connected and are protected by a dry nitrogen coating.  Next filter dryers are installed.  These filters keep your home’s air clean and safe by absorbing moisture and filtering out any pollutants that may enter your home’s air.  Finally the system is wired to connect to the circuit breaker and a drain line is added to help drain collected moisture from your new air conditioning unit.  The system is then started and runs for 20 minutes to monitor for any issues.  

Tips for Maintaining Your New AC Unit 

It is important to inspect and replace your air filter every 2-3 months.  This keeps the air flowing through your home clean and safe.  Delaying this can expose you and your loved ones to harmful allergens and pollutants.  It also greatly impacts the efficiency of your new AC unit.   

You should consider hiring a professional to inspect and clean your home’s unit. While it may be tempting to save some money and do this yourself, you may not know what components need to be cleaned or how to delicately clean them.  By having a professional clean your unit and ducts, you can rest easy knowing your air conditioner has been properly cleaned and maintained and not have to worry about a system failure. 

About All Year Cooling

Here at All Year Cooling we have served South Florida since 1973.  With over 350,000 satisfied customers we are happy to serve our community.  Our professionals receive year round training and are up to date on all EPA standards. We offer free diagnostics and estimates to all customers and our own internal financing. Contact us today!