York and Coleman Extend Rebate Program - WOW!

Both York and Coleman have extended their consumer rebate program until September 30, 2009. Coupled with the Missouri Gas Energy rebates, the ARRA (Stimulus) Tax Credits, and the competitive nature of the HVAC industry right now, the fall of 2009 will go down as one of the best times to replace residential HVAC systems in a long time. Consumers need to know that this 'perfect storm' of tax credits, manufacturer rebates, discounts, and utility promotions is something that no one in our industry has ever seen before. If you thought cash for clunkers was something, these savings to replace worn out equipment with new systems that pay for themselves WITHOUT any of these promotions, credits, or rebates are truly incredible.

Before Stimulus - Green Shoots Continue to Grow Strong in Greensburg, Ks

Before the economy took the tumble, we were all focused on high energy prices. Now that the economy has begun some serious healing, we are starting to get back to paying attention to the economic problem that we will always have - the ever increasing cost of energy. Whether for a geo-political reason like energy independence or a sensible midwestern no-nonsense reason like 'avoiding waste', energy efficiency will be coming back in the spotlight in a big way as this economic recovery continues. One place that continues to focus on the 'Greening of America' is Greensburg, Kansas. Here is another interesting story about the continuing changes in Greensburg and the work of York and Fahnestock Plumbing, HVAC and Electric to keep that movement alive (Click on the link to view now);

http://finance.yahoo.com/news/Johnson-Controls-Donates-iw-3621324397.html?x=0&.v=1

IRS Issues Further Guidance on ECM Tax Credit - LIMITS Tax Credit for Furnaces below 95 AFUE

The IRS has issued guidance on the tax credit for furnaces that utilize an 'advanced technology main air circulating fan' or ECM motor. They have stated that only the amount of the purchase allocated to the fan qualifies for the tax credit. This is in the case of a furnace that does not otherwise qualify (a furnace less than 95 AFUE). This would limit the tax credit to something near $150 for most applications (assuming a value of the ECM equipped fan section of about $500). The complete guidance can be found here;

http://www.irs.gov/pub/irs-drop/n-09-53.pdf

HARDI Update on ECM Equipped Furnace Credit

HARDI has just posted an update on their tax credit website regarding the IRS' indication regarding the tax credit that would be allowable for furnaces that HAVE an ECM motor, but are below 95 AFUE. While not final, the early indication is that the 30% tax credit would be available ONLY for the 'fan portion' of the furnace, not for the whole furnace for sub-95 AFUE furnaces. This update can be found at http://www.energyefficiencycredits.blogspot.com/ and reinforces the early interpretation that, in order to qualify for the tax credit at the most affordable cost, the 95 AFUE single stage furnace is a real winner!

TOTALLY FREE HVAC! We are in Kansas!

I clicked my heels together and WOW! We are in Kansas, Toto! Kansas just released their new program for TOTALLY FREE HVAC! The Kansas Residential Appliance Replacement Program money will be gone in a flash! If you don't register today or Monday, then quote jobs next week, you will miss the train. This is a first-come, first-served program that has a limited amount of funding that will be allocated very quickly. Subject to income guidelines, the State will pay for replacement of 10-year old systems. That's right - 100%. Do it now, click here to download the forms, sign up as a retailer, and go out and sell jobs. I believe this program will not last 30 days, so you better jump on it while it lasts. It doesn't get any better than this - people who need it the most can now get affordable energy bills, improved comfort, and it costs them nothing! And - since all York and Coleman Furnaces, Air Conditioners, and Heat Pumps are made in Kansas it's a double whammy for the local economy!

http://www.kshousingcorp.org/programs/rar.shtml

Wow - this is unbelievable!

Missouri Gas Energy's $200 Bill Credit Program PLUS $25!

Wow - another program to encourage conservation from a major Missouri Gas utility - Missouri Gas Energy's $200 bill credit for 95 AFUE furnaces. Check out their website at https://www.missourigasenergy.com/MGE/conservation/heatingIncentives.jsp
They also have a 'sweetener' for the addition of a programmable thermostat at the time of the furnace installation that pays another 25 bucks! It is really great to see these local utilities serve the public interest by supporting the retirement of old, inefficient appliances and replacing them with brand spanking new energy efficient Energy Star wonders. Go to Missouri Gas Energy's website for more details or give me a call. Oh, don't forget the 'up to' $3250 in manufacturers rebates and tax credits that come with that extra $225 above! Let's all help more folks save energy, money, emissions, and more.

$4000 in Tax Credits, Rebates and Utility Incentives - A New High!

Wow - the kettle is starting to perk. Our customers are really starting to communicate with the public - I thought $3250 was big - wrongo! One of our best customers on the far east side (of Kansas City) combined Kansas City Power and Light Cool Homes program with the extra-early York incentives and the new Tax Credits (see below and below again) to combine for over $4000 in tax credits, rebates and utility incentives. You would think that everybody will jump on this train. But remember - this is all limited at this point - only 21 months left on the tax credits - only a few months for the manufacuturer rebates. NOW is the time. I'm telling everyone I know that if you THOUGHT you needed replacement HVAC for your home - it isn't going to get any better. When this economy turns around and demand for metals heats up world wide - look out. We'll be facing the old I-word again (Inflation). Now is the BEST time I have ever seen to INVEST at home. I told my sister today that it may not ever get any better than this - start saving on your utility bill now and take advantage of a real trifecta - tax credits, rebates, and utility promos!

And MORE Local Incentives and Rebates? You Bet!

Okay, I give! I admit it - I underestimated the rebates and tax credits at $3250. I forgot about the LOCAL utility rebates and incentives. Take Springfield, Missouri for example. They throw on an additional $350 for a 95 AFUE furnace. It actually goes on up to $400 for the AFUE you see from the York and Coleman Modulating furnaces. Okay - you get the picture - more rebates - now up to $3650 in this southwest Missouri town. So how do you keep track? Here's an easy way - just click on the links you see on the bottom right of this blog to take you to the current local rebate programs in the states of Iowa, Kansas, and Missouri. Like I've said before - there's no time like now to invest in HVAC!

3% CD or 10% HVAC - Take Your Pick!

A quick check of 5 Year certificate of deposit rates at Bankrate.com(TM) http://www.bankrate.com/ shows that the current average rate is less than 3%. Compare that to investing in state-of-the-art HVAC equipment in our sample house in a Kansas City suburb - a 4-Ton home with an existing 78% furnace and a 9 SEER air conditioner. We ran the numbers on a top of the line York dual fuel heat pump with a 95+ AFUE furnace and took advantage of the $1500 tax credit, the $1700 rebate currently offered through York Liberties(TM) dealers, and the heat pump rate offered by KCPL and quickly determined the annual return on investment at more than 10%! Why compare against an existing system with such a high AFUE and SEER? To make the point that even when comparing a replacement system against existing relatively recent systems, the combined effects of the tax credits, manufacturer rebates, and energy savings yield solid returns on investment. Looking at systems with older AFUE's and SEER's makes the return on investment even better! The point is this - investors have choices - not only are HVAC returns at an all time high due to the stimulus plan tax credits and rebates, BUT the competing returns on many financial instruments are at a significant low point. Also, this investment is in your own basement, safer than money in the mattress!

Tax Credits and Rebates Combine for $3200 Savings for Midwest Homeowner

It didn't take long! We knew small business owners would immediately respond and take advantage of the opportunity to sell high efficiency systems and use the new tax credits and early timing of this year's manufacturer's rebate programs to get sales rolling fast! This morning a York dealer in a small town outside of Kansas City combined the stimulus bill tax credits and York's early kick-off of the Spring selling season to save a homeowner a combined $3200 in tax credits and rebates. Wow! In my lifetime, I have never seen an opportunity like this to save big money. And the incentive keeps on giving - the homeowner now owns York's most efficient system and gets to enjoy the lower utility bills and comfort advantages that his new two-stage heat pump, equipped with variable speed air handler and non ozone depleting refrigerant has to offer. This is a huge win-win for all of us. With York's plant located in Wichita, Kansas there is an added bonus as the workers in the Midwest churn out more green products to complete the stimulus cycle. This is truly the best homeowner opportunity I have ever seen in my career.

Stimulus Bill Tax Credits for HVAC

Timing is everything! The stimulus bill certainly does the HVAC industry a favor providing a whopping $1500 tax credit for the 2009/2010 period for the replacement of residential HVAC systems featuring a 95+ AFUE furnace. While the credit is for 30% of the installed cost, this should be a pretty easy hurdle, as the $5000 total is really a bare minimum for a smaller system, with most replacement systems going for more. York and Coleman are very well positioned in the market now, as the single stage entry level product in their new 33" condensing furnace line now reaches 95.5 AFUE. A great position to be in for a dealer as he can now sell qualified systems with a variety of affordable outdoor products and efficiencies, including hybrid systems, and still earn the tax credit for the homeowner. With Spring promotions starting up already (a month and a half earlier this year), it's a great time to buy a new HVAC system, with rebate and tax credit totals getting up in the $3000 range. Not to mention the energy savings and increased comfort possibilities. Invest at home, buy HVAC now!