ClimateMaster Manufacturer’s Certification for Geothermal Tax Credit

If you sold ClimateMaster for a residential installation (including installations done in 2017), your homeowner may look to claim the re-instated geothermal tax credit.

As part of the claim process, homeowners will need ClimateMaster’s Manufacturer’s Certification of Geothermal Heat Pump Property Compliance. As a contractor, you can provide this at the time of installation or direct them to the ClimateMaster Residential Energy Credit page to download it.

 

Geothermal Tax Credit Reinstated – Retroactive to 2017

As part of the tax bill passed on Friday, February 9, Congress reinstated the federal geothermal tax credits for residential and commercial use.

Residential Geothermal Tax Credit

The residential credit (detailed below) applies to residential systems installed from January 1, 2017 through December 31, 2021.

Installation Year Tax Credit
2017 30%
2018 30%
2019 30%
2020 26%
2021 22%

Commercial Geothermal Tax Credit

The bill modifies language related to how commercial geothermal systems qualify for tax credits. Under the new bill, a commercial project becomes eligible for the tax credit in the year it commences, rather than the year the project’s system is placed into service.

For commercial geothermal systems, there is a 10% Federal Income Tax credit, which can be combined with solar and wind tax credits and energy-efficient building deductions.

What does this mean for you?

  • If you did geothermal installations in 2017, make sure those customers are aware that the credit has been reinstated. The IRS will post details here on how to claim this credit.
  • For commercial contractors, use this new rebate information to evaluate if geothermal may become a more viable solution for upcoming projects.
  • For residential contractors, make sure you’re leveraging the rebates in your marketing for geothermal. If you’re an HVAC Distributors customers and need help with your geothermal marketing, reach out to us.

HVAC Distributors is a ClimateMaster geothermal distributor for Pennsylvania and New York. Through HVAC Commercial Solutions, HVAC Distributors has access to ClimateMaster’s commercial line.

You can order qualifying product at any of our HVAC Distributors locationsby phone or through Web Order Entry.

Changes for 2018 – Convenient Rebates, Rooftop Standards

Convenient Rebates

Goodman Manufacturing announced updates to its homeowner-oriented web sites, www.goodmanmfg.com and www.amana-hac.com. The sites now integrates rebates available based on a homeowner’s location into its web site layout. As customers (or you) search for products, rebates available in the local area will also populate.

Region-specific rebates can be searched on the sites by selecting Rebate Center under the Resources menu on each site.

Rooftop Energy Efficiency Standards are Changing

At the beginning of this year, 3 to 5 ton 13 SEER Packaged Units were discontinued, per Department of Energy regulation.

Beginning January 1, 2018, the performance measurement metric for 6 – 25 ton packaged units is being changed from EER to IEER (Integrated Energy Efficiency Ratio). This change is expected to improve the energy efficiency of rooftop equipment by about 10%. Required minimum IEER are noted in the table below.

Updated IEER Ratings for Equipment Manufactured On/After January 1, 2018

Unit Min IEER
Cooling Only 6-10 T 12.9
12.5-20 T 12.4
25T 11.6
Gas/ Electric 6-10 T 12.7
12.5-20 T 12.2
25T 11.4
Heat Pump 6-10 T 12.2 (3.3 COP)
12.5-20 T 11.6 (3.2 COP)
25T 10.6 (3.2 COP)

What does this mean for your customers? According to an article in ACHR News, “a typical building owner [would save] $4,200-$10,100 over the life of a single rooftop air conditioner. For larger commercial buildings, the savings are significant.”

What does this mean for you? As stock of older rooftops runs out, it will be replaced by units that meet the now higher efficiency requirements. To improve IEER, which is a weighted average of four load points, manufacturers adjust how the equipment performs at 75% load and 50% load. This can be done by increasing the physical size of the system or, as our manufacturer partners are doing, by changing compressors and drives to provide more variable performance.

You are still able to purchase and install rooftops that meet current EER/IEER standards. However, these models are not allowed to be manufactured after January 1, 2018, so when we sell out of existing inventory, it is gone for good.

If you are an HVAC Distributors/HVAC Commercial Solutions customer with a current committed project with an extended lead time, please reach out to your Account Manager about product availability.

If you are an HVAC Distributors/HVAC Commercial Solutions customer interested in learning more about how our manufacturer partners are improving the energy efficiency of their rooftop products, or in how best to explain these changes to your customers, reach out to your Account Manager.

 

#HoustonStrong

As a distributor for Amana, Goodman and Daikin Ductless brands — manufactured out of Houston, Texas — we wanted to share an update from Goodman Manufacturing about how Goodman employees and the Goodman facilities are following the impact of Hurricane Harvey.

Please note: HVAC Distributors has plenty of inventory to handle our customers’ needs, so you do not have to worry about how Hurricane Harvey will impact your business and use of Amana, Goodman and Daikin Ductless products.

Are Employees Safe?

From Goodman: Managers have been checking in, on a regular basis, with all employees located across Southeast Texas and Western Louisiana. Most employees are safe, but some are sheltered in their homes while rain and wind continues and roadways remain closed. That said, a small number of employees have experienced flooding or loss of property. We are working to help provide affected employees with support.

How is the distribution facility in Houston?

From Goodman: All Houston area facilities, including the Daikin Texas Technology Park, appear to have minimal impact from the flooding. The facilities are set to begin full scale operations as soon as employees have the ability to safety return to work.

Is Goodman doing anything to support those impacted by Hurricane Harvey?

From Goodman: Details around product support for homeowners that have experienced flooding will begin in the coming days and week. We will make sure to support our neighbors and community as we collectively recover from the storm and its damage. #HoustonStrong

Daikin Unveils Texas Technology Park

The new Daikin Texas Technology Park is one of the most technologically advanced HVAC manufacturing facilities in North America.  Covering an area of approximately  4.1 million square feet on 500 acres of land, it is the third largest factory in the US and the fifth largest in the world.

Located just outside of Houston, Texas, the new facility is designed to better serve customers, employees, and the environment by consolidating manufacturing, engineering, logistics, marketing, and sales into one campus.

The $417 million facility is expected to put about 5,000 people to work in the Houston area through direct employment and the expected arrival of related businesses.

Click here for a virtual tour.

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Updates to EPA Section 608 and Section 609

If you have an active EPA Section 608 Certification, you need to be aware of how Section 608 and Section 609 are changing in 2017 through 2019.

 

The EPA has provided a simple .pdf of changes that relate to HVAC technicians. Additional summaries for other changes to Section 608  are available through the EPA’s web site.

While the current changes do not require re-certification, if you do require Section 608 Certification, HVAC Distributors offers EPA Certification testing at all of our locations.