Classic Dave's Air Conditioning Blog

Per Letter I received stating more on the Tax credit.
Plus Update on Energy Star web site today

Energy Star Tax Credit

2009 Tax Credits for Energy Efficient HVAC Equipment
On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 (ARRA) into law. The bill combines spending and tax incentives designed to get the American economy moving again by investing in our nation’s road and energy infrastructure, and increasing the energy efficiency and performance of America’s homes and commercial buildings.

For qualified improvements, homeowners may be able to claim tax credits equal to 30% of the installed costs (up to $1,500).

The new tax credits are retroactive to January 1, 2009, and expire on December 31, 2010. The $1,500 limit is for all improvements made during the two year term, not $1500 each year.

Homeowners may use the entire $1,500 tax credit limit on a single qualifying improvement. The previous per-appliance caps that limited the homeowner to just $150 for a high efficiency furnace or $300 for a high efficiency central air conditioner or heat pump have been removed.

Homeowners that previously claimed tax credits in 2006 or 2007 are eligible for the full $1,500 limit.

Steven Chu, is the main man when it comes to energy. Dr. Chu is a Nobel Prize-winning physicist. Not a politician. I love for him and another of my favorite physicist Kaku Michio to sit down and discus science stuff and how different concepts of energy would work and not work for the American people.
Count me in on that I’d watch that on the Science Channel.

It’s my belief maybe Dr. Chu can get things done if he continues to lead with his head and heart and not by the standard political way.
I like his stance so far. I like that he is considering the national grid as a high priority.

His Energy Department also plans to move quickly to distribute money under the weatherization program to help low-income families improve the energy efficiency of their homes. The economic stimulus package provides $11 billion to the weatherization plan. Ok CBSnews.com reported 11 Billion and GreenCollarEducation.net reported 5 Billion towards weatherization. It needs to be around 11 Billion Dollars to be effective. So I’m counting on CNN’s report.

I still have some doubts about the effectiveness on the weatherization program. But when I break it down, if done correctly would be very effective.

How many people will qualify, and will the weatherization improvement companies make enough money to create new jobs?

There is a lot of factors that have to equal up. A low income family, say a family of four needs to make less than $31,800. This is not a lot of income money so it is going to cut out a lot of deserving people who make more than this that could really use some weatherization relief too.

The president, stated that the weatherization program would effect around a million homes. This would average out to be $11,000 per home. This figure would be a good estimate to weatherize a home and this should provide enough money to the weatherization companies.
In another blog post, I’ll go into why weatherization is actually one of the only relief programs that will actually make and save money. This is the concept where you spend a little to save a lot.

I am still wondering if the Energy Star Tax Relief for high efficiency equipment is part of this plan or if it a different bird all together? Right now on certain energy saving air conditioning and heating systems you can get a $300 tax relief in 09. This is a good thing too for America, I’d like to see more of a tax relief than $300
which I will explain in another blog post.

Here is a list of what may be on the plan. I am always skeptical about job creation.
How is the government agency going to find the weatherization company?
Does the home owner get a check then they seek an estimate? Does the Gov agency have their good ole boy do the job/s? These small details and basic questions haven’t been answered at this time so how can we say about 32,000 jobs will be created?
It also depends if a company can make enough money to hire. As of right now the bidding on air conditioning installation is at it’s all time low. It is one of the causes that air conditioning companies are failing. They think by dropping the price they will get the job. If they get the Job they then figure out they did not make any profit and now they owe distributors and suppliers. The distributors and suppliers are feeling the effects!
This is something I warned our local distributor about over a year ago.
This is how our industry has failed.
Cheap bids do not work. Cheap work doesn’t produce quality or efficiency.
We need to get back to a fair market price structure as a industry whole and start
planning better to make every new home meet the Energy Star tax relief guide line.
Anyways here is some figures on the Weatherization Assistance Program provide by
GreenCollarEducation.net:

• $5 billion for the Weatherization Assistance Program, sufficient to meet President Obama’s goal of weatherizing one million homes per year while creating an estimated 32,000 jobs in the auditing and retrofitting industries;

• $4.5 billion to make 75 percent of federal buildings more energy efficient;

• $3.1 billion for the State Energy Program (SEP), which delivers important energy efficiency services and innovations in every state and has the needed infrastructure to quickly absorb the new funding and create new jobs;

• $300 million for state matching grants for rebates to consumers who purchase higher-tier energy-efficient appliances;

• $3.2 billion in State Energy Efficiency and Conservation Block Grants (EECBG) that will allow state and local governments to aggressively implement energy efficiency programs;

• $400 million of the EECBG funds to be awarded on a competitive basis to encourage states to adopt stronger building energy codes and to adopt utility regulatory reform leading to rate reforms, such as decoupling, that will help their customers save energy;

• More than $8 billion for state and local government investments in public transportation.

The Weatherization Plan has got my attention.
It’s actually been around, but to me, kind of ineffective.
Hence since no one really knew about it before this stimulus package

I have read a little on this plan, I do not know much since there isn’t much about
it only what was done last year.
I will say I will know about the weatherization package since I hope it will help
in business and possibly personal.

Hopefully in future blogs I will describe detail outlines of
President Obama’s Weatherization Plan. How it can effect a Company who participates in the plan,
will it be enough to make a company who participates in the plan grow so they can hire and create new jobs.

Second,
What does it actually take to qualify?
What will it actually do for a home owner who qualifies for the weatherization?
What paper work one must do to qualify?
Is there a cost to qualify?
How much can a home owner receive for weatherization?

I hope to find these answers out and more. Not by asking but by doing.

I have always stated in the grand market of selling,
Colorful brochures are nice, but I still like to put tools to things and prove
they are as nice as they look on glossy paper.

~Classic Dave

from Foxnews.com

http://www.foxnews.com/politics/first100days/2009/02/05/obama-ordering-energy-efficient-standards/

Let me just add a thought to this plan.
In 2006 The energy efficiency rating for Air Conditioning rose from 10 SEER to 13 SEER. If you ask me,
I would encourage the President to give incentives to consumers to buy 15 SEER or above rated Air Conditioning equipment. If you want a true stimulus package, then there is no greater advantage then having the upper level of high efficient air conditioning systems installed in the common household. There is air/air systems that can save 56 dollars for every $100 spent on air conditioning. You want an American Saving plan? Here it is with Classic Dave’s recommend two speed/stage air conditioning systems. I’ve been there and done it and the saving I see with homes with 2 speed systems is incredible. Give the consumer a $3000 voucher towards a 2 speed air conditioning system! Yea give some of that 900 Billion dollars to the consumer so they can accomplish a real stimulus that they can actually see reflected every month in their utility bill. Just think every house hold that uses half the amount of energy on their air conditioning system would mean. I doesn’t take a rocket scientist to figure out what benefit this means to America.