The Energy Policy Act of 2005 includes federal tax credits for many types of home improvements, including certain high-efficiency heating and cooling equipment.

Central Air Conditioners
For the tax credit for central air conditioners, the efficiency standard specified by the law is for "a central air conditioner which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2006."¹ On January 1, 2006, CEE's highest efficiency tier was Tier 2.

Split Central Air Conditioning Systems

Level	SEER	EER
Energy Star	14	11.5
CEE Tier 1	14	12
CEE Tier 2*	15	12.5
CEE Tier 3 (Advanced)	16 or higher	13 or higher

Packaged Central Air Conditioning Systems

Level	SEER	EER
CEE Tier 1 and Energy Star	14	11
CEE Tier 2*	14 or higher	12 or higher

SEER: Seasonal Energy Efficiency Ratio
EER: Energy Efficiency Ratio
* CEE's highest efficiency tier on January 1, 2006

The CEE Directory of ARI (Air Conditioning Refrigeration Institute) Verified Equipment allows you to search for central air conditioning systems that their manufacturers claim meet CEE's Tier 2 specifications. Please note that the CEE Directory does not contain all air conditioners that may meet these specifications.

• Click here to reach the CEE Directory.
• After reviewing and accepting the terms of use and the introduction to the Directory, select the link to Air Conditioners.
• Enter the ARI Reference Number for your air conditioning system in the top box in the left column and click the "Search" button. On the results screen, you will find the CEE Tier for this system in the second column from the right side of the screen labeled "CEE Qualifying Tier."
• Note: It is also possible to search by model numbers. For assistance identifying the ARI Reference Number using model number(s) for your system, please consult your HVAC contractor.

Air Source Heat Pumps

For the tax credit for air source heat pumps, the efficiency standard specified by the Energy Policy Act of 2005 is for "an electric heat pump which has a heating seasonal performance factor (HSPF) of at least 9, a seasonal energy efficiency ratio (SEER) of at least 15, and an energy efficiency ration (EER) of at least 13."

• Click here to reach the CEE Directory.
• After reviewing and accepting the terms of use and the introduction to the Directory, select the link to Heat Pumps.
• Enter the ARI Reference Number for your heat pump system in the top box in the left column and click the "Search" button. On the results screen, you will find the EER, SEER and HSPF values for this system on the right side of the screen.
• Note: It is also possible to search by model numbers. For assistance identifying the ARI Reference Number using model number(s) for your system, please consult your HVAC contractor.

Further information:

The Internal Revenue Service has published guidance on these tax credits, including further eligibility criteria and available tax credit amounts: Internal Revenue Bulletin: 2006-11. Taxpayers must complete IRS Form 5695 to apply for the tax credit. The ENERGY STAR website also has helpful information about these tax credits and others provided in the law for energy efficient products.

The foregoing information was posted on August 22, 2007 and is published by CEE for informational purposes only. CEE does not undertake to revise or update the information. This information is not meant to substitute for tax advice from a tax professional. Please consult your tax advisor for information regarding your individual circumstances and specific eligibility for this and other tax credits.