Disclaimer: This article is not meant to knock a particular home warranty company or person within. This was written as a glimpse of what goes on with home warranties and how it effects the home owner. Our experience of home warranty companies might not reflect what happens in other areas of the country.

As contractors, when we first start out learning the trade, it is drilled into us to never talk bad about other contractors or anyone else in the industry. However, it is very difficult for us as air conditioning professionals to be in the business of serving people while experiencing all the negative that surrounds home warranties and stay completely silent about it.

False Sense of Protection

Most consumers first get a taste of a home warranty because it was sold with their home when they moved into it. They then renew every year with the assumption of when something goes wrong with their home, it will be covered. Homeowners pay a service fee (deductible) the first time a service provider is dispatched by the warranty company to make a repair.

Every week we get many calls from uncomfortable homeowners who have a home warranty and they are in a panic. Most have been without air conditioning for 3+ days because the home warranty company and the approved contractor they recommend to come out can’t get to them for several days.

The devil is in the details.

Home warranty companies are not on the consumers side (nor the contractors side). They are NOT in business to spend money. They are simply an insurance company looking to protect their interests and reduce claims.

On the home warranty contract, there is some very fine print. Most of it states obvious reasons that a claim would not be approved. But a lot of people don’t see the deeper motives and issues surrounding their business model. Here are some helpful points you should consider before moving forward with signing a home warranty contract.

If you keep in mind the true cost of the warranty (contract premiums, deductibles, time spent on the phone arguing, delays and lack of quick resolution, dealing with less than stellar service companies, the fine print, agent kickbacks), you might want to rethink how to spend your hard earned money.

The Tax Relief, Unemployment Insurance Re-authorization, and Job Creation Act of 2010 was signed into law December 17, 2010. Section 25c tax credits (the official name of the energy tax credits) are available to taxpayers who make energy efficient retrofits to their homes. The tax credits are extended through 2011, but at a significantly reduced value compared to the previous tax credits of 2009-2010.

Starting on January 1, 2011 and through December 31, 2011, an eligible homeowner can claim 10% of the costs, capped at $500, for the installation of qualified energy efficient improvements, subject to certain limits.

Under the new law, for HVAC, the maximum a homeowner could claim is $300 for a qualified central air conditioner or heat pump, and $150 for a qualified furnace or hot water boiler, and $50 for any advanced main air circulating fan. Those 3 add up to the $500 maximum.

Beyond the change to the tax credit values, the new law will increase the qualifying standards for natural gas hot water boilers, propane hot water boilers, oil furnaces, and oil hot water boilers to 95% AFUE. The qualifying standards for natural gas furnaces and propane furnace remain at 95% AFUE.

The qualifying standard for central air conditioners and heat pumps, which were modified by the Stimulus bill in 2009, are not changed. Therefore, a central air conditioner must meet or exceed 16 SEER and 13 EER; and an air source heat pump must meet or exceed 15 SEER and 12.5 EER and 8.5 HSPF, in order to qualify for the tax credit.

Finally, the new law reinstates the lifetime credit caps, which disqualify any homeowner who has claimed more than $500 in Section 25c tax credits since January 1, 2005, from any further credits.

Qualifying HVAC Equipment Tax Break Down:

• Central Air Conditioners: 16 SEER and 13 EER = $300 credit
• Heat Pumps: 15 SEER and 12.5 EER = $300 credit
• Natural Gas Furnaces: 95% AFUE = $150 credit
• Advanced Main Air Circulating Fan: ECM Blower = $50 credit

Information on the process for applying for the tax credits can be seen here.

Source: ACCA
Houston Air Conditioning & Heating -  2011 HVAC Energy Tax Credit

You’ve probably seen the ads that promise a “Complete Air Conditioning or Furnace Tune-Up for $19.95″ and you’ve probably wondered things like:

“How can companies offer air conditioning & heating tune-ups for $20, $30 or even $40″

OR

“Wouldn’t it cost more than that just to drive a service truck to my house?”

Well guess what? It does!

The answer is, many customers end up paying a lot more in the end than that low, hard-to-resist advertised price…

There are some honest companies that use a low price to attract new customers. They’re willing to do a great job and take a loss on their first contact with you in the hope that you’ll continue to use them again and again. There’s nothing wrong with that.

But some companies have a different agenda. Some offer the ridiculously low priced tune-up and then send a “technician” to your home to perform a very basic clean and check. That tech is trained to up-sell you on often unnecessary repairs or even a complete replacement of your system. At best you end up with a shoddy “tune-up”. At worst, a big repair bill.

Our Tune-up is different. When you call us, we’ll send a NATE certified technician to your home for a complete and thorough tune-up that will ensure your system is in peak operating condition. If we discover any problems, we’ll quote you an up-front price from our price book and even offer you a seasonal guarantee. We can’t do what we do for $19.95, but we can promise you a fair price for an honest service.

Save this coupon and take $5 off our Clear Advantage Membership that includes 2 seasonal tune-ups (one for your air conditioner and one for your heater)

Copyright © 2010 Service Roundtable ®

Turn in your energy hog clunker of an air conditioning system and get $500 cash back

Plus all those savings on your home energy bills

Plus Federal Tax Credits and Factory Rebates from Trane!

Your total savings could be up to $3000!

The era of conserving energy is upon us. You hear it on the news every day (global warming, rising energy prices, foreign oil, smart grid, etc..) and like most of us you’d like to do something about it. If not for the environment then at least for your pocket book.

Home heating and cooling is the largest chunk of your yearly energy costs, at about 45%. Air conditioning alone represents 15 to 20% of your yearly energy costs, and that’s consumed just during the summer. Something we know all too well in Houston. A high efficiency air conditioner can save you a lot of money on your electric bill!

Now is the time to upgrade your Central Air System to today’s high efficiency systems.

• We’ll give you $500 cash back
• Your friends at the IRS will give you up to $1500 in tax credits
• Trane, our product supplier, will give you from $400 to $1000 in instant rebates

Yes, all the planets and stars have aligned at the same time to give you these fantastic savings. And you will save money on your power bills, year after year. Wow!

Contact us and find out exactly what you’ll save.

$500 Cash Back on Trane XL15i or Higher Efficiency Systems

We’ll give you $500 cash back when you upgrade your home comfort system. The following complete systems are eligible;

• Cooling system with Gas Heat: Condensing unit (outside), Evap. Coil (inside) and Gas Furnace
• Cooling system with Electric Heat: Condensing unit (outside), Evap. Coil (inside) and Electric Heat Air Handler
• Cooling system with Heat pump: Heat Pump unit (outside), Evap. Coil (inside) and Electric Heat Air Handler

Need help with choosing the best system for your home? Ask us.

Up to $1500 in Tax Credits – An Added Bonus

With passage of the American Recovery and Reinvestment Act of 2009 (applicable till December 2010), homeowners may be able to claim tax credits equal to 30% of the installed costs (up to $1,500) if you make energy-efficient upgrades to your home. And that includes HVAC equipment. More about tax credits here.

Not only will you save with our Cash for Clunkers program, the government will help you save even more.

But there is still more…

Trane Factory rebates of up to $1000 – Yet Another Bonus

From now till June Trane is offering $400 to $1000 instant rebates for XL systems. That’s the same systems we’re offering $500 cash back on. Actual rebate amount varies depending on which pieces of equipment you choose. Ask us for details.

So you get $500 cash from Clear the Air, up to $1500 in tax breaks, and up to $1000 in rebates from Trane. Don’t forget those power bills savings too. Do not pass this up!

Instead of the rebate you can also choose 36 month interest free financing or 3.9% APR, both through Trane.

Now is the time to upgrade your Central Air System to that high efficiency system you need.

Contact us today about replacing your clunker.

With passage of the American Recovery and Reinvestment Act of 2009, consumers can upgrade to more energy-efficient HVAC equipment and save on their energy bills now, and also save on their taxes next year. The new law makes important changes to existing tax incentives for homeowners who make qualified improvements of higher efficiency HVAC equipment.

(For more information on how higher efficiency equipment can save you more money, please see our previous post here.)

Houston Metro Residents should contact us about applying this tax credit to new HVAC equipment. Outside Houston contact your local HVAC contractors.

Residential Tax Credit Details

For qualified improvements, homeowners may be able to claim tax credits equal to 30% of the installed costs (up to $1,500).

• Furnace to qualify 95% AFUE
• Boiler to qualify 90% AFUE
• A/C to qualify 16 SEER + 13 EER
• Heat Pump same as A/C plus HSPF 9
• Water Heater energy factor .8 (tankless)

Please ask your comfort adviser for details on qualifying equipment.

• 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.

• Per-Appliance Caps Removed – Homeowners may use the entire $1,500 tax credit limit on a single qualifying improvement. The previous per-appliance caps that limited the homeowner to just $150 for a high efficiency furnace or $300 for a high efficiency central air conditioner or heat pump have been removed.

• Lifetime Limit Removed – Homeowners that previously claimed tax credits in 2006 or 2007 are eligible for the full $1,500 limit.

• Expanded Geothermal Tax Credits – Homeowners who install geothermal heat pump systems may be able to claim up to 30% of the installed costs in tax credits in the year the system is placed into service. The $2,000 tax credit limit has been removed. The geothermal tax credit has a longer term, from January 1, 2009 and expires December 31, 2016.

• Consumers should be aware that the $1,500 limit applies to many types of energy efficient home improvements, including windows and doors, roofing shingles, and insulation. You can use the $1500 on just HVAC improvements or on a combination of above home improvements.

Frequently Asked Questions About the New Tax Credits

Can a homeowner claim $1500 in tax credits for improvements made in 2009 and again for improvements made in 2010?
No. Taxpayers may only be eligible for a total of $1500 in tax credits for improvements made in the combined two year period of 2009 and 2010.

Can a homeowner use the entire $1500 limit as a credit toward the installation of one appliance?
Yes. A homeowner may use the entire $1500 in tax credits for installing a single appliance, such as a qualified furnace, air conditioner, heat pump, or hot water heater.

What happens if the 30% of the installed costs is less than $1500?
The homeowner can “bank” the the remaining available tax credit for other qualified improvements. Any single installation that costs more than $5000 will instantly reach the $1500 limit.

Does the tax credit apply to the cost of the equipment or equipment plus labor?
The tax credit applies to the installed costs of the qualified equipment, which includes labor.

How will a taxpayer claim the credit and receive their money?
In the past, the IRS has directed taxpayers to use Form 5695, Residential Energy Efficient Property Credit. Taxpayers are not required to file anything more than the form, but are instructed to keep records of their installation.

What’s the difference between a tax credit and a tax deduction?
As a tax credit applies against the taxpayers’ liability. A tax deduction applies against a taxpayer’s income, lowering the adjusted gross income and possibly moving the taxpayer to a lower tax bracket. Tax credits have a greater benefit to a taxpayer.
With a tax credit, if the taxpayer owes $2000, in taxes, their liability is reduced to $500. If they owe nothing, they can expect a $1500 refund.

What if the homeowners already claimed $500 in tax credits in 2006 or 2007?
The “lifetime caps” that used to be in place have been removed. Any previous claims do not count against the current $1500 tax credit limit.

Can a homeowner claim the credit for improvements to a second home?
No. The tax credit is only available for improvement to the taxpayer’s primary residence.

Can a small business that operates out of a townhouse and installs residential equipment in a commercial setting claim the credit?
No. The tax credit may only be claimed by taxpayers on their personal income taxes for improvements to their primary residence.

What other types of energy efficiency improvements qualify for the tax credits?
Homeowners may be able to qualify for the tax credits if they make qualified improvements to: windows and doors including skylights, storm windows and storm doors; roofing including metal and asphalt roofs; and insulation. All of these improvements qualify, but homeowner may only claim $1500 in total for any improvements.

Will every homeowner definitely qualify for the tax credit?
No. Each taxpayer’s situation is different. Please consult with a tax professional if you have questions regarding your tax situation in regards to these new credits.

It’s hard to find good news for your wallet these days, but these new tax credit changes can help you keep your cool in terms of both comfort and savings!

But the Financial DOOM & GLOOM in the News Got You Down?

LET US BAIL YOU OUT!

Save 12.5% on a New Air Conditioning System, RIGHT NOW!

That’s right! We’re easing the strain on your wallet by offering a significant discount on all new central air conditioner installations. Same goes for heat pumps, air handlers, even gas furnaces.

**UPDATE!** Take advantage of this offer before it ends, and we’ll also include a new digital thermostat with your system at no extra charge!

Don’t Wait! This Sale Ends in 2 Weeks

Contact Us Today and tell us you need a bailout package.

Energy Savings Too!

The technology in today’s heating and cooling equipment makes for highly efficient energy use. The Trane units we sell are the industry leaders in efficiency. You will enjoy added savings on your monthly utility bills. The average savings are 30% and can go as high as 60%. That adds up to a lot of money, every year.

What Credit Crisis?

We have two financing providers should you need to make a purchase on credit. Both are still actively taking finance applications and approval rates are normal.

Weathering the Financial Storm

At Clear the Air we are well positioned to ride out the credit crunch and any oncoming recession. As a leading central A/C dealer and contractor in the Metro Houston market we have excellent purchase agreements with our suppliers and can ensure our products will continue going out.

We will always be the company that is here to service your home comfort system and continue to service manufacturer warranties, as well as back our installation guarantees.

Take advantage of this Bailout Sale now. By the time the dust settles in the stock markets this sale will be over.

Give us a call at (281) 992-7866 or click to our contact page and send an email.

Note: With passage of the American Recovery and Reinvestment Act of 2009, homeowners may be able to claim tax credits equal to 30% of the installed costs (up to $1,500) if you upgrade to more energy-efficient HVAC equipment. For more information on these HVAC tax credits, click here.

So how old is your A/C system?

In 2006, a federal regulation mandated that central cooling systems had to have a minimum S.E.E.R. (Seasonal Energy Efficiency Rating) rating of 13. Up to that point, the minimum rating had been 10. So what does that mean to you? Basically, the higher the SEER rating, the more energy efficient the central air conditioning unit and the less electricity you’ll need to cool your home. Even 6 year old systems are considered grossly inefficient by today’s energy efficiency standards.

According to Consumer Reports, “A central air conditioning unit rated at a 13 SEER uses up to 30 percent less electricity than a 10 SEER system. With higher energy costs predicted in many parts of the country, consumers will have that payback on the unit much quicker with less electricity being used.” Considering that going from, say, a 10 S.E.E.R. system to something like a 16 S.E.E.R. could save you an average of 50-60% on your electric bills, a new high-efficiency system can pay for itself a lot more quickly than you might think.

Also, a new system is going to be quieter, as well as simply make your home more comfortable. And finally, a new high-efficiency cooling system is going to add significantly to your home’s resale value.

You worked hard for your money all last year. If you are anticipating a tax refund, consider making an investment in your family’s comfort and your home’s value.