Choose Higher Efficiency and Receive Tax Credits! Energy Policy Act, 2005: New Tax Credits Available for Homeowners & Businesses This information should help make you, and your family, very comfortable when choosing a new, higher efficiency heating and/or air conditioning system for your home. . . The Energy Policy Act of 2005 makes available a variety of tax credits for homeowners, businesses and manufacturers with the purchase of energy efficient products. The products can be used for the completion of new energy efficient buildings or improvements to existing buildings. The Act provides tax credits for energy efficiency measures, including: Tax credits for residential solar photovoltaic and hot water heating systems, Tax deductions for highly efficient commercial buildings, Tax credits for highly efficient new homes, Tax credits for improvements to existing homes, including high efficiency air conditioners and equipment, Tax credits for residential fuel cell systems, and- Tax credits for fuel cell and micro turbines used in a business. Existing Homes HVAC Tax Credit: Section 25C of the Internal Revenue Code offers tax credits of up to $300 for 'Qualified Energy Property' subject to a maximum tax credit limit of $500. The products, efficiency levels, and tax credits available for HVAC products follow: Heat Pumps -- Electric air source heat pumps with at least a 9.0 HSPF, 15 SEER, and 13 EER qualify for the tax credit. This specification applies to both heat pump split systems and packaged units ($300 tax credit). Air Conditioners -- Split and packaged air conditioning systems must meet the following efficiency requirements to qualify for the tax credit:      1. Split system air conditioners -- SEER of at least 15 and EER of at least 12.5           ($300 tax credit).      2. Packaged -- SEER of at least 14 and EER of 12 ($300 tax credit). Heating -- Qualified products include natural gas, propane or oil furnaces and hot water boilers that achieve at least a 95% AFUE ($150 tax credit). Blowers -- Advanced main air circulating fans used in natural gas, propane or oil furnaces that use no more than 2% of the total annual energy use of the furnace ($50 tax credit). Additional information is available at the www.energystar.com or www.irs.gov websites.