Federal Economic Stimulus for Energy Efficiency Bolsters Growth Opportunities for Simpson Air
The energy-efficient portion of the Economic Stimulus Plan provides a win win for both homeowners and local businesses The plan provides homeowners with a $1500 tax credit towards the purchase of high-efficient HVAC systems while local company's selling and installing such system can continue to grow.
However as part of the ARRA, notes Garry Simpson of Simpson Air, the plan also has major incentives for energy efficiency and reduction in the home. For this initiative, Simpson has been inundated with calls and requests from homeowners for information on the $1,500 tax credit for energy-efficient products like central air and heat pumps.
Simpson states that while an energy-efficient system will pay for itself over time, the cost barriers that prohibited some from buying a system in the first place have largely been reduced thanks to the stimulus package.
“Every homeowner has the incentive to install an energy-saving solution and economically benefit from it in many ways,” states Simpson. “First of all, the combination of the $1500 tax credit and additional manufacturer’s rebate has made high efficiency AC equipment very, very affordable for everyone. Second, the benefits of a 14 SEER, 12 EER packaged central AC and heat pump unit uses less energy, lowers the home’s monthly utility costs and improves overall air comfort.”
In response to the immediate – and anticipated long-term – interest in the tax credit and overall benefit of energy-efficient systems, Simpson is preparing to take the lead in the Tampa market through the addition of more sales professionals and staff to handle the requests and installations.
“The tax credit is a win-win for everyone,” states Simpson. “As an advocate for energy efficient products and services, I’m personally pleased to see the incentives the President has put forth to empower change in the way our homes operate. From a business perspective, while we haven’t projected sales, the tax credits for purchase of new systems can’t be anything but a good thing and should have a positive impact on our business over the next two years.”
An incentive of this size has not been offered by the Federal Government. Previously limited to $300 for central air conditioners and heat pumps and $150 for furnaces and boilers, according to the Air Conditioning Contractors of America, the new law allows homeowners to claim 30 percent of the costs up to $1500 for the installation of higher-efficiency products in the 2009 and 2010 tax years. While the credits can be “banked” for smaller purchases accumulated during this time, the entire incentive can also be utilized for a single purchase, such as a new central air system.
In addition to higher tax credits, the type of qualifying equipment has also changed. According to the stimulus plan, only the highest tier of the 2009 Consortium for Energy Efficiency (CEE) will qualify. Qualifying products and minimum energy efficiency standards include:
1) Electric Air Source Heat Pumps
Split Heat Pumps (15 SEER / 12.5 EER / 8.5 HSPF)
Package Heat Pumps (14 SEER / 12 EER / 8 HSPF)
2) Central Air Conditioners
Split System (16 SEER / 13 EER)
Package System (14 SEER / 12 EER)
3) Geothermal Heat Pump (30% eligible for credit)
Closed Loop (14.1 EER / 3.3 COP)
Open Loop (16.2 EER / 3.6 COP)
Direct Expansion (15 EER / 3.5 COP)
4. Natural Gas Furnace (95% AFUE)
“The timing of this program is perfect,” concludes Simpson. “Electricity rate increases are expected to be approved soon, the hot summer is nearly upon us and it is the right thing to do for our environment. When you couple that with the tax credits and overall benefits, there’s never been a better time to install a high-efficiency energy product than right now.”
The new tax credits are retroactive to January 1, 2009, and expire on December 31, 2010. The $1,500 limit is for all improvements made during the two year term, not $1500 each year. Homeowners that previously claimed tax credits in 2006 or 2007 are eligible for the full $1,500 limit.
For more information on the Carrier products that qualify for the tax credit, please call Garry Simpson at 813-558-0858 or visit www.simpsoncoolair.com.
Simpson Air is the retail division of Simpson Mechanical, one of the most trusted air conditioning companies in Tampa Bay. Created in 1999, Simpson Mechanical is a Carrier factory authorized dealer and is renowned for its problem solving, customer care and service programs.
Paige Fisher Simpson