A few days ago someone asked me, does 16 SEER Ac qualify for tax credit ? Have you ever thought about that? Is this even possible? Let’s find the answers.
SEER is a very important part of an air cooling system. It’s full meaning is, Seasonal Energy Efficiency Ratio. This seasonal energy efficiency ratio of an air cooling system will help you to calculate how much heat is brought out from your house by an air cooling system or your heater in watts-hours. Remember the more the ratio, the more your air cooler will be energy efficient.
A good modern SEER rating starts from 13 and ends at 16. But the question is, does 16 SEER Ac qualify for tax credit? How does this tax credit work? Or how you will get the tax credit after getting qualified?
I know this whole concept is a bit confusing. I know some of you find this tax process a bit difficult. But trust me, if you start to get it, it will get quite simple to you. All you just need to give a little bit of focus on it to understand the whole concept and to show a little bit of determination to read this whole article.
I hope this article will help you to find out and also clear out all your problems and confusions and be able to give you a proper answer. So without any further delays let’s get started.
Does 16 Seer Ac Qualify For Tax Credit?
Your question to me was, does 16 SEER Ac qualify for tax credit? I have a solid answer to this wonderful question.
The answer to your question is, 16 SEER air cooling systems meets the 25c requirements, in that case 16 SEER air cooling systems does qualify for a federal tax credit.
However, if this answer is not enough for you or if you are still not clear then do read the whole article to get a better answer with a proper explanation.
What Air Conditioner Qualifies For Tax Credit?
Let’s start from the basics first. Before getting into the whole details, let’s know the reasons why 16 seer air cooling systems are qualified for tax credits.
Have you ever wondered which kind of air cooling systems are qualified for the tax credits? Well, I have got you covered.
Air cooling systems which are well organized for saving energy and which also have an energy star, are qualified for the energy tax credit. Especially the central air cooling systems. They are most popular for saving energy and also well known as an energy star air cooler.
These types of air coolers have SEER. SEER help these coolers to save energy by counting how much heat was removed from your house by an air cooler. Modern SEER rating starts from 13 and ends at 21. But the homeowners especially love a 16 SEER air cooler.
These kinds of air cooling systems can get a tax credit upto 500 dollars.
Read more: Does 15 Seer AC Qualify For Tax Credit? (Revealed)
What Is The Residential Energy Credit Limit?
If you are wondering what the residential energy tax limit is, then I have got some good news for you.
If you can save energy and also make some upgrades on that then you are eligible for a tax credit in the time of taxable year. All you have to show is that you have made some upgrades and that you have saved enough energy throughout the year in your principal residence by using energy saving air coolers or heaters or water heaters. If you are eligible then boom, you are qualified for that energy credit limit.
25c requirements have changed many times from 2018 to 2021. At this moment, I mean the 2021 residential energy credit limit is about 500 dollars.
What Is The 25c Tax Credit?
So as far as we know, we are learning the basics so that you won’t face any problems during the whole tax qualification process. I am telling you all of these things to make you more clearer about the whole concept.
Hang in there, we are almost there to know why 16 seer air cooling systems are qualified for the tax credit.
So, do you know what it means by 25c tax credit? Well, a certain amount of tax credit is given to the homeowners so that they invest more on energy efficient air cooling systems or heaters or water heaters. And this process is called 25c tax credit.
All you have to do is fill a form of IRS (Internal Revenue Code [IRC] §25C) to claim a tax credit which is upto 300 dollars.
What Are The 25c Requirements?
Well I guess by now you know what the 25c tax credit is. But here is the catch, there are some requirements included with this 25c tax credit.
The homeowners have to show that they have made improvement throughout the year by installing energy efficient equipment which is owned and used by the taxpayer’s principal residence.
They have to show they have saved enough energy throughout the year and now they are eligible and can be qualified for this tax credit.
So, if you can fulfill these certain requirements then you are qualified for the 25c tax credit.
How Do Tax Credits Work? And How Do You Know If You Are Eligible For It By Owning A 16 SEER AC?
Energy tax credits work by reducing dollar to dollar income tax monies. If you are wondering how this tax credit works and how you will know if you are eligible for it or not then I have got your back.
This whole process depends on your federal tax and tax credit which will tell you how much you will get as a refund.
For example- if you are in debt by the federal tax about 1000 dollars but also eligible for the tax credit which is about 1000 dollars too then you will get zero amount in return.
But if your complete tax is about 400 dollars but your credit tax is about 1000 dollars then you will get about 600 dollars as a refund.
So, if you can pass the 25c requirements and also have some refundable money left after doing the whole process and also own a 16 SEER air cooling system then you are eligible for this tax credit money. I guess now you are clear on how this whole thing works.
Is 16 Seer AC Good?
So, finally we are here on the main subject of this whole article. Let’s know why a Seer 16 air cooling systems are good enough to be qualified for the tax credits.
We all know what Seer is right? But have you ever wondered why a 16 SEER air cooling system is called a good choice? Is it really a good rating or is it just another misconception?
Anything which is more than 13 Seer is a good choice. The higher the seer, the more your air cooling system will be efficient for saving energy. In that case, you can say a 16 seer is an excellent choice to make if you want to buy a new air cooling system.
You may ask, why is it called a good choice? Because anything higher than this is a bit expensive and anything lower than this rating has lower efficiency when it comes to saving electricity energy.
That’s why a 16 SEER air cooling system is called a people’s favorite because it comes on a moderate range of money and also with excellent service.
Read more: Does 14 Seer Ac Qualify For Tax Credit? (Let’s Know Now)
What Is The Difference Between A 13 Seer And A 16 Seer?
The full meaning of the SEER is seasonal energy efficiency ratio. In air cooling systems anything starting 13 seer is a good choice. But it gets better if the seer starts to get high.
For example- a 13 and a 16 seer air cooling system. There is a difference between a 13 and a 16 seer air conditioner. One of them has higher energy saving efficiency than the other one.
You can find a 13 seer air cooling system at a lower price than a higher rating seer. It will come in a single stage. But the problem with a lower rating seer is, even though it will save energy but still your utility bill will come a bit higher.
A 16 seer air cooling system will not only give you a premium service, it is also a very good option if you want to save more energy and also your money.
Well I know a 16 seer air cooling system can be a little pricey but if you see it in a bigger picture, it can save you a lot of money each year. It also causes less effect on the environment.
What Is The Difference Between A 16 Seer And An 18 Seer Air Conditioner?
Do you remember what I was telling you in the previous conversation? The more SEER rating the better your air cooling system will be in terms of saving energy.
Just like 13 vs 16 SEER, 18 SEER is better than a 16 SEER. You may ask why? The reason is still the same, which is its energy saving ability.
Let’s just do a simple calculation-
If you run a 16 seer air cooling system component which comes in a 24000 BTU for 1,000 hours (kWh=$0.1319) it will cost you 197.85 dollars per year.
On the other hand, if you run a 18 SEER air cooling system component which comes in 24,000 BTU for 1,000 hours ( kWh=$0.1319) it will cost you 175.87 dollars every year.
So if we want to look for the main difference between a 16 and a 18 seer then let’s calculate these numbers. It will come about, $197.85-$175.87= $21,98 per year. After 10 years it will be about $200 difference.
As I said, higher rating SEER aircons are a bit pricey. But for a long run, a 18 SEER air cooling system will be the best for you to make.
Which One Is Better: A 16 Seer Or A 14 Seer Air Conditioner?
If you are confused about buying a new air conditioner which has a 14 and a 16 SEER rating then let’s find out which one will be a better choice for you.
As we all know a higher SEER rating air cooling system is a good choice, so in that case a 16 SEER air cooling system will be the smart choice for you if you are confused between a 14 and a 16 SEER air cooler.
Now let me tell you why. A 16 SEER air cooling component needs 14.3% less voltage than a 14 SEER air cooling system. If your air cooler needs less energy, then you can save money every month from your electricity bill. Now imagine how much money you can save in a month or in 1 year or in 10 years.
Now the rest is your choice which one you want to buy.
Is 16 Seer Worth The Extra Money?
Higher SEER air cooling systems come in a bit pricey. Now the question is, is a 16 SEER air cooling system worth the extra money?
A 16 SEER air cooling system can expand the energy saving efficiency process better than a 13,14,15 SEER air cooling system. And it will later increase more and more if you raise the SEER ratings. But is it worth it?
Even though 16 SEER air cooling systems are more costly than a 13,14 and a 15 SEER air cooling system, it also has the ability to show 13% more efficiency than them. Now you tell me, how much money will you be able to save over the years if you use a 16 SEER air cooling system?
How Much Money Do You Have To Pay For A 16 Seer Air Conditioner?
If you are looking for a new air cooling system with a moderate SEER rating then a 16 SEER air cooling system is the best and smart choice for you.
Because anything higher than a 16 SEER air cooling system is costly and anything lower than 16 SEER air cooling system is less efficient.
You can get a 16 SEER air cooling system from about 2,000 dollars to 4,000 dollars. But it depends on the type and size.
If you are looking for a good quality 16 SEER air cooling system then you have to pay a bit more cash. And if you are looking for a moderate range 16 SEER air cooling system then it will start from 2,000 dollars.
Now it is your call, which one you want to buy.
How Much Less Do You Pay For Electricity If You Choose A 16 Or Higher Seer Rating AC?
Suppose you are looking at a 21 SEER and a 16 SEER air cooling system . Both of them are 3 tons and both work absolutely the same. But their energy saving efficiency is different from one another. Now, you are confused about which one you should buy.
As I have told you higher rating SEER air coolers are pricey and the price range increases as the SEER rating increases. Now you’ve seen the 16 SEER air cooling system comes 500 dollars lower than a 21 SEER air cooling system.
But will it be a smart choice for you if you buy it without calculating the further money process? Or is a 21 SEER air cooler worth your money? Let’s find out.
A 21 SEER air cooler which comes in 3 tons needs 298 dollars to run each year. On the other hand, a 16 SEER air cooler needs 392 dollars a year. There is about a 100 dollars difference each year.
Now count it in 10 years. A 21 SEER air cooling component will save about 1,000 dollars of less electricity. In 20 years it will be 2,000 dollars if you use a 21 SEER air cooling component ( durability of a mini split air cooler is about 20 years) .
So even though a 16 SEER air cooler costs 500 dollars more money than a 21 SEER air cooling system, a 21 SEER air cooler will save hundreds of dollars every year from your pocket.
Benefits Of Higher Seer Ratings Or Ratio
Now let’s know the benefits of using higher SEER ratings or rations.
There are mainly two kinds of benefits you will find if you use a higher SEER rating air cooling systems. They are –
- Higher energy efficiency.
- Greater indoor comfort.
1.Higher Energy Efficiency : A modern SEER rating air cooling system starts from 13 and ends at 21. But Trane air coolers start from14.5 SEER and end at 22 SEER. But these ratings and its ability will be changed by the size of your house, your present ductwork and other things.
According to the US Department of Energy your air cooler’s SEER depends on your earthly territory. It means, your SEER ratings will be different depending on where you are staying or living. If you are living in the Southeast or Southwest, your SEER rating will be at least 14. If you are living on the North side then it will be 13.
There is a misconception among some of you that a 13 or 14 SEER is an inefficient and unskillful air cooling system. It is not true actually. Some of the older air cooling systems are still working very well and also saving energy very wonderfully which only have 8 or 9 SEER inside of them.
2. Greater Indoor Comfort : Having a higher SEER rating air cooling system will not only save your electricity and money but also has the ability to give you comfort on the summer days. Especially if you are living in the southwest or southeast regions.
A higher SEER air cooling component has 2 things which is the main reason behind the contribution of indoor comfort. They are –
- Because it is 2-stage.
- Has variable speed compressor.
Most of the lower SEER air cooling systems are single stage and only work on one speed. Having a lower SEER air cooling system can cause many problems.
They can’t cool down the room properly, get switched on and off often when the weather is mild, they are unable to remove moisture from the air, your air cooling system will take time to cool down the room etc.
But if you buy a higher SEER air cooling system, you won’t have to face these lengthy problems that much.
Seer Rating Chart
Let’s see an image where it shows a yearly electricity costing difference between SEER 12,14 and 16 air cooling systems. All of them work the same. But their electricity saving efficiency is different. Let’s see what they look like-
- All three of them are 36,000 BTU or you can say 3 ton air cooler components.
- Worked 1,000 hours a year.
- Standard cost of electricity is 13.19 cents per kWh.
Now see, the electricity price of an air cooling system with a SEER 10 rating costs 475 dollars a year. This same cooling effect you can get by using a SEER 20 air cooling system but at a lower price which is 237 dollars a year.
Now let’s come to SEER 16 and 14. It can clearly be seen on the graph that the difference between a 16 and 14 SEER is about 42 dollars a year. And a SEER 16 is also 13% more energy efficient than a 14 SEER air cooling system.
Conclusion
Does 16 SEER Ac qualify for tax credit? I guess this article has given you the answer already.
I hope this whole concept is clear to you by now. From now on, don’t forget to collect your yearly tax credit that you proudly own by saving electricity by using an energy efficient air cooler.
