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| Press Release |
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| Click here to see Qualifying Equipment for Tax Credits |
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President Barack Obama has signed into law the Economic Recovery Act. In broad terms, the $787 billion package funds
infrastructure projects, health care, renewable energy development and conservation programs. There are several provisions
within the law that will impact our industry including tax credits, infrastructure spending on federal buildings and new
school construction.
Federal programs will be administered by the appropriate federal agency. For example, public housing funds will be
administered by HUD. State program funds will be transferred to state governors who will disperse funds through various
state agencies. AHRI is developing a campaign to encourage government officials to designate funds for HVACR equipment
upgrades. We will provide more details on that effort shortly.
AHRI's Vice President of Government Affairs Don Davis and his staff have prepared the following summary of the key provisions
in the law that impact our industry.
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Tax Policy
The legislation provides an extension of the consumer tax credits for certain HVACR equipment. Beginning at the date of
enactment (Feb. 17, 2009), consumers can claim a $1,500 aggregate tax credit for qualified energy efficient home improvements.
The efficiency levels have been modified to reflect the highest tier of the CEE High-efficiency Specification for Residential
HVAC Systems. Qualifying equipment includes 95 percent AFUE gas furnaces; 90 percent AFUE oil furnaces; 16 SEER/13EER and
above central air conditioners; 15 SEER/12.5 EER/8.5 HSPF split heat pumps; 0.82 energy factor/90 thermal efficiency gas,
propane, or oil water heaters; and 90 percent AFUE gas, propane or oil-fired boilers. This provision replaces the current
tax incentives for these products.
A 30 percent tax credit for the purchase of solar water heaters and geothermal heat pumps is also available. There is no
limit to the total amount of the credit, e.g., if a geothermal heat pump cost $5,000, a consumer would receive a $1,500 credit.
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Energy Star
The joint explanatory statement of the conference committee includes funding of $300 million for the Energy Star Program for
matching grants for state rebates to consumers buying Energy Star appliances to replace old appliances.
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Buy American Clause
This provision states that "none of the funds appropriated may be used for iron, steel or manufactured goods unless they are
produced in the United States." The legislation provides for exceptions when there are no American products available, if it is
in the public interest to allow for a non-American product or if the requirement would increase the cost of the project by 25
percent or more. There is no specific definition in the provisions of what constitutes "American goods." AHRI does not
believe that this clause relates to tax credits or deductions provided under 25C, but we may receive clarification from
the government at a later date.
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Public Housing Capital Fund
The legislation provides $4 billion through Sept. 30, 2011, for upgrades, maintenance and repair of public housing projects. The
bill places emphasis on the installation of "energy conservation retrofits," however, funds may be used for other purposes.
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Federal Buildings
The legislation provides $5.55 billion for the retrofit of federal buildings. Specifically, $750 million for federal building
and courthouses, $300 million for border stations and $4.5 billion to convert GSA facilities to High-Performance Green
Buildings.
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Schools
The legislation issues "Qualified School Construction Bonds." A qualifying bond "means any bond issued as part of an issue if
100 percent of the available project proceeds of such issue are to be used for the construction, rehabilitation, or repair of
a public school facility or for the acquisition of land on which such a facility is to be constructed with part of the proceeds
of such issue." The national limit is $11 billion for 2009 and the same amount for 2010. The legislation also provides another
$200 million in 2009 and the same amount in 2010 for the retrofit of schools owned by the Bureau of Indian Affairs.
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Defense Energy and Efficiency Program
The bill provides $100 million to fund energy efficiency and alternative energy projects at Navy and Marine Corps facilities.
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Advanced Energy Manufacturing Credits
The law provides $2.3 billion worth of energy-related manufacturing investment credits at a 30 percent rate. These credits
apply to projects creating or retooling manufacturing facilities to make components used to generate renewable energy, storage
systems for use in electric or hybrid-electric cars, power grid components supporting addition of renewable sources, equipment
for carbon capture and storage and other advanced energy property designed to reduce greenhouse gas emissions as may be
determined by the Secretary.
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View a chart of the individual credit amounts for all HVACR products. The full text of the the stimulus package is now
available.
Thank you for your support and if you have any questions please feel free to contact me at 703-524-8800.
Dave Calabrese
Vice-President, Public Policy
AHRI
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| Qualifying Equipment for Tax Credits |
| Good news for our members! Below you will find the energy upgrades listed in the recently signed
stimulus bill. Please note that the 30% cap on geothermal has been REMOVED from the final bill. Please start using this in
your promotions ASAP, indicating the satisfaction of using the stimulus funds to create jobs and promote energy efficiently.
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Energy Improvement and Extension Act Provides New Federal Tax Incentives for Installation of Geothermal Systems |
| 10/7/2008 |
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 Fort Wayne, IN. – Home and commercial building owners who install geothermal heating and cooling systems are now eligible for
federal tax incentives under the Energy Improvement and Extension Act of 2008, passed by Congress Oct. 3 as part of the
economic recovery package.
WaterFurnace International Vice President of Sales and Marketing, Phil Albertson, said, “By passing this important piece of
legislation, Congress is encouraging the growth of renewable energy and the small businesses across the country that support it.
WaterFurnace dealers are excited about these tax incentives and the positive impact it will have on their business as geothermal
systems become increasingly more attractive to both home and commercial building owners.”
The Energy Improvement and Extension Act offers a one-time tax credit of 30 percent of the total investment for residential
ground loop or ground water geothermal heat pump installations, with a maximum credit of $2,000 for a single residence. The
legislation also provides a credit of 10 percent of the total investment, with no maximum credit, for commercial system
installations.
To qualify for the tax credit residential systems must meet Energy Star requirements, and legislation is retroactive to
residential systems installed after Dec. 31, 2007. The tax credit for commercial buildings begins with systems installed
after Oct. 3, 2008. Owners can file for the credit by completing the Renewable Energy Credits subsection on their 2008 tax
return forms. No proof of purchase is required. However, in case of an audit, owners are encouraged to keep a detailed invoice
of their purchase on file. The contractor who sold and installed the product should list the purchase as a “Geothermal Heat Pump”
on the invoice and note that the unit “Exceeds requirements of the Energy Star program currently in effect.”
Tim Shields, Chairman of the Board of WaterFurnace, said, “We believe this incentive will encourage many more homeowners and
business owners to install geothermal heat pumps. Geothermal heat pumps are made right here in the U.S. and the machines used to
put the renewable heat exchangers in the earth are all made right here. Every system installed requires skilled US labor and
more installations mean more jobs. This is truly a homegrown solution to the energy crisis and a very good way to address the
financial crisis at the same time. The systems were already growing in popularity, but this stimulus will help us have the
impact on the economy and the environment much more quickly.”
Geothermal systems tap the free, completely renewable, supply of solar energy stored just a few feel below the Earth’s surface
and use that energy to drive heating and cooling system in both residential and commercial buildings. In addition to utility,
state and now federal tax incentives that enhance the affordability of geothermal systems, this cost-effective, environmentally
friendly technology offers a host of benefits that includes:
• Free, renewable supply of solar energy
• Efficiency ratings up to five times higher than those of ordinary heating and cooling systems
• Savings on utility bills up to 70 percent
• Reduced carbon footprint since the system burns no fossil fuels More even distribution of heating and cooling for improved comfort
• Improved indoor air quality
• Quiet operation with no noisy outdoor units to disturb the environment or neighbors
• Safe operation that requires no open flame or fuel storage tanks
• Less maintenance
• Increased system longevity (an average life span of 24 years vs. 15 for conventional air conditioners and 20 years for fossil fuel furnaces)
For more information about the benefits of a geothermal heating and cooling system, visit www.waterfurnace.com or contact your
local WaterFurnace representative.
To learn more about the new federal tax credits, visit http://www.thomas.loc.gov or contact your local tax professional.
WaterFurnace International, Inc.
WaterFurnace International, Inc. is the leading manufacturer of residential, commercial, industrial and institutional geothermal
and water source heat pumps. Products from WaterFurnace include energy-efficient and environmentally friendly geothermal comfort
systems, indoor air quality products and pool heaters. WaterFurnace (TSX:WFI) was founded in 1983, the company is
headquartered in Fort Wayne, Ind.
For additional information, please visit www.waterfurnace.com.
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Nate Certifications |
| 4/30/2008 |
Dean Finken, Jeff Swinnerton, and Justin Larsen (left to right) of Camblin Mechanical Inc. in Atlantic recently earned
certifications from North American Technician Excellence (NATE). Each is NATE certified for both installation and
service on air conditioning and air-to-air heat pumps.
NATE is an independent, third-party organization that develops and promotes excellence in the installation and service
of heating, ventilation, air conditioning, and refrigeration equipment by recognizing high-quality industry technicians
through voluntary testing and certification.
Dean, Jeff, and Justin earned their certifications by passing stringent NATE exams. The exams reflect a consensus
industry opinion on what the average technician should know in order to effectively install and service air conditioning
equipment and systems.
Justin, a resident of Anita, is Service Manager and a Vice-President for Camblin Mechanical Inc. He is a graduate of
Vatterott College and has 12 years of experience in the HVAC field.
Dean, a Service Technician for Camblin Mechanical Inc., is a resident of Atlantic. He is a licensed Master Electrician
and has 35 years of experience.
Jeff, a resident of rural Atlantic, is also a Service Technician for Camblin Mechanical Inc. He is a licensed Mechanical
Journeyman and has 21 years of experience.
Camblin Mechanical Inc. serves all of Southwest Iowa from its Atlantic location.
Contact: Lorna Albright
712-243-1535
lorna@camblinmechanical.com |
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Is Your Boiler Ready for the Heating Season? |
| 10/2/2006 |
| (This article appears in the Atlantic Municipal Utilities Newsletter 10/02/2006) |
| A reliable heating system is critical to any commercial or industrial facility.
Improper maintenance can lead to inefficiencies and higher heating bills or,
at worst, system downtime. What can you do? A regular maintenance program, with annual inspection and cleaning, is the best way to ensure boiler
efficiency. Some suggestions include: |
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- Establishing a regular inspection schedule
- Keeping complete records - serial number, models, date of installation
- Knowing your system -
manufacturing manuals should be kept accessible to all.
Start preparing now for the heating season. Those who avoid planning for the winter months could face higher heating bills, potential system failure,
and unnecessary expenses.
Heating system failure in cold weather can lead to lost productivity and damage to other building systems, as well as angry and uncomfortable
building occupants. Many experts predict that the loss of a controlled heating environment can cost up to ten times as much as a regular maintenance
program. Yet boiler maintenance is too often low on everyone's priority list until the equipment fails. Here are some simple suggestions to ensure that
your boiler and heating system are ready for the cold months ahead.
Annual Cleaning and Inspection
While a regular maintenance program is very important, an annual cleaning is often the best method of deterring system failure and increasing
fuel savings. While an annual cleaning and inspection should follow manufacturer recommendations, there are some basic elements that should
be part of any annual cleaning program. (Annual cleanings should be performed by a technician certified and experienced in boiler maintenance and repair.)
- Inspect and clean the fireside. A dirty fireside (such as one with deposits of soot and non-combustible material) will lead to loss of efficiency.
- Inspect and clean the waterside. This inspection should not begin until the boiler has cooled to 120ºF. Allowing the water to cool will limit the possibility of scalding.
- Check the refractory. Boiler failures are often caused by cracking or erosion in the refractory. Patch as necessary following manufacturer recommendations.
- Burner inspection. Open the burner and inspect the components. All parts should move freely without making contact with other parts. Clean all components to like-new condition.
- Detach controls and inspect them for both mechanical and electrical operation. Reinstall and double check them before restarting boiler.
- Check the fluid levels on hydraulic valves and repair any signs of leakage.
- Check filters, and clean or replace them as needed.
- Check boiler feed pumps, and replace or recondition if necessary.
- Empty and wash out condensate receivers, and make an internal inspection. If necessary, overhaul and check for proper operation.
- Check electrical connections on starters and relays for tightness.
Boiler Inspection and Permit Renewal
Most state governments require some sort of annual inspection and permit renewal for boilers. It is a good idea to coordinate your annual cleaning
with the boiler inspection. Maintain complete records and have them ready for the inspector. Individual components should be listed on an index card
or computer program by model, serial number, and installation date, as should any subsequent reconditioning or repairs. Part numbers and other related
information can be obtained from the manufacturer.
For more information, visit the National Board of Boiler and Pressure Vessel Inspectors and the American Boiler Manufacturers Association Web sites.
Act Now to Avoid Problems Later
It is a good idea to prepare now for the heating season. Those who avoid planning for the winter months could face higher heating bills, potential
system failure, and unnecessary expenses. Regular maintenance and annual inspections are the best ways to ensure reliable and comfortable
heating, and are your best insurance against system downtime.
Boiler Inspection Checklist
- Keep complete records. Individual components should be listed on index cards or in a computer program by serial number, model, and date of installation.
- Know your system. Keep the boiler manufacturer's manual and information in a place that is accessible to all maintenance staff.
- Establish and maintain boiler log sheets on a regular basis.
- Regularly inspect and clean electrical equipment.
- Maintain a ccurate fuel records.
- Ensure that all employees understand and practice all safety measures associated with boiler use and maintenance.
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| 8/8/2006 |
| Geothermal heat pump system support green building certification |
| A significant attribute of building green is energy performance beyond code requirements. SEDAC regularly evaluates geothermal heat pump (GHP) systems as a method to reduce significantly the amount of energy used to heat and cool a building. In addition many GHPs use R-410A as their refrigerant which has an Ozone Depletion Factor of zero. Furthermore, GHP installations provide excellent thermal comfort and a high level of controllability in commercial settings. With so many benefits to the building value and the accelerated payback period realized as a result of increasing gas and electrical costs nationwide, geothermal heat pumps are clearly one of the "smart" choices you can make when helping our building go green.For more information, visit SEDAC partner: www.geoexchange.org |
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Mid American Energy Award |
| 5/16/2006 |
Camblin Mechanical, Inc. of Atlantic has received the Nonresidential Equipment 2005 Winners’ Circle award for Highest Energy Savings (Natural Gas)
in the Council Bluffs area from MidAmerican Energy. Justin Larsen, Service Manager with the local commercial heating and cooling contractor, is shown
above at the KSOM Home Show held this month in Atlantic.
Justin showcased geothermal systems for Camblin Mechanical, Inc. at the KSOM Home Show. He said high energy prices have renewed consumer interests in
geothermal systems as a way to save money and have reliable heating and air conditioning.
Camblin Mechanical, Inc. and MidAmerican Energy cooperate to provide
customers with high efficiency equipment to lower fuel consumption and their monthly utility bills.
Camblin Mechanical, Inc. was chosen to receive the award from among
commercial mechanical contractors in Southwest Iowa. The award is presented in connection with MidAmerican’s EnergyAdvantage programs which provide Iowa
customers the opportunity to make their homes or businesses more energy efficient.
Camblin Mechanical, Inc. opened its doors in 1918 and has provided quality mechanical
installation and service in Southwest Iowa for three generations. Bob Camblin, President, credits the company’s commitment to new technology and quality service in gaining
the respect of customers.
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The Energy Bill |
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On August 8, 2005 President Bush signed a bill that established a $150 tax credit to the consumer for furnaces with an energy-efficient level of
no less than 95% AFUE that are installed between January 1, 2006 and January 1, 2008. The bill established a separate tax credit of $50 for furnaces
with variable-speed motors installed during the same time period.
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AIA Sets Goal of Decreasing Fossil Fuel Consumption |
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The American Institute of Architects (AIA) recently set an ambitious goal to reduce buildings' fossil fuel consumption by 50 percent in four years, with additional 10-percent reductions every five years thereafter.
AIA's new sustainability policy was created in response to growing concern about global warming and the negative environmental impact of commercial buildings. Buildings consume nearly half of the energy used in the United States and 70 percent of the electricity generated, according to research used by the AIA in developing the policy.
A task force of architects, researchers and green building experts determined that with design strategies including natural lighting and passive heating and cooling techniques, energy consumption can be reduced without adding costs to construction. |
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