Save money on new non-Freon air conditioners - Getting a Tax Break When You Buy a New Air-Conditioning System for Your Home.

If you have an air-conditioning system that was made before 2010, it's possible that it uses an older kind of refrigerant gas called R22 or Freon. This coolant is being phased out, and there are some ways to save money and/or get tax breaks when a new air conditioner is purchased. As everyone will need to buy a new AC unit eventually.

The EPA has set 2020 as the year beyond which Freon will no longer be imported or manufactured. If you decide to buy a new air-conditioning system now, you get to take advantage of state government and/or IRS tax breaks. The money saved can be freed up for paying other bills, ranging from utility to housing and more.

What is Freon?

Freon is a refrigerant, a gas sealed into all refrigerators and air conditioners. It is Freon that flows through the pipes of an air-conditioning system to remove warmth from a room. It is what cools your home, and when you pay air conditioning bills during the summer it is what you are paying for if your HVAC unit uses it. As efficient as Freon is as a refrigerant, it is harmful to the environment. It was discovered a few decades ago that when Freon escaped an old and broken refrigerator or air-conditioning system, it depleted the ozone layer very quickly.

Makers of HVAC systems have been prohibited from manufacturing units that use Freon since 2010. After 2020, there will be no more Freon gas made or imported for use in repairs of old air-conditioning units. This will make things costly for some homeowners. As anyone who continues to use an old Freon-based air-conditioning system, the cost of repairs will rise as stocks of Freon become scarce. Your contractor or HVAC company will pass the higher costs to the end consumer. As Freon runs out, repairs will become impossible. For most people, there will be no alternative to replacement.

 

 

There is a new kind of air-conditioning system available

Starting with the year 2010, new air-conditioners made have used a different kind of technology. They use a refrigerant called R410a. This gas doesn't harm the ozone layer the way Freon does, because it has different chemical properties. Unfortunately, these chemical properties mean that it needs to be used at very high pressure levels. New air-conditioners made for R410a are able to deliver the pressure required. Older conditioners are not capable of those pressure levels, and cannot use R410a.

Is it worth replacing your existing air-conditioner with a new R410a system?

xisting air-conditioners that run on Freon are now close to a decade old at a minimum. These systems are not energy-efficient when compared to newer systems. This means your utility bills will be higher than they may otherwise be, When you replace your existing air-conditioning system with a new R410a system, you get an appliance that is better for the environment, that comes with a warranty, and that needs less power to run. You will save on your electric bills.

There is also the tax break

Since the government wants to incentivize the switch-over to the new system, it is offering homeowners tax breaks when they buy new systems based on the R410a refrigerant. In the past, the tax break amounted to no more than a few hundred dollars. Now, however, to further encourage the switch, the IRS is increasing the amount of deduction, which will help buyers afford a new AC unit.

 

 

In some years the federal government was allowing homeowners to deduct the entire cost of a new air-conditioning system, however the exact amounts change every year. Always review the latest IRA info for the latest deductions, or talk to your utility company or HVAC company. In additionally, potentially, homeowners can claim deductions worth $5,000 or more. Different states offer further tax incentives.

It can be hard to predict how long these tax incentives will last. The IRS could withdraw them in the year 2020 if it chose. If you believe that you may need to replace your air-conditioning system in the next few years, you may as well do it now and take advantage of the tax break. Buying a unit can save you on taxes and save you money on utility bills, as the new HVAC air conditioning systems are more efficient.