BEND, OR -- State Energy Tax Credits are ending at the end of this year, and local heating and cooling companies are extremely busy as homeowners scramble to get work done before the deadline.
Oregonians who want to take advantage of current programs need to purchase systems and fill out the paperwork before December 31, and the system must be installed by April 1, 2018. Randall Marchington, an HVAC Mechanical Estimator for Bend Heating and Sheet Metal, says homeowners shouldn't let this opportunity pass. "These are not necessarily small incentives. So, on ductless heat pumps, they're $1,200 or $1,300. And then, when you start combining that with the utility cash rebates, It can be over $2,000 total."
The tax credit is a dollar-for-dollar trade against any Oregon State Income Tax Liability, and the homeowner has five years to use it how they see fit. Marchington says his schedule is filling up, "We've been noticeably busier than the last, past years. No doubt about it. This is the busiest we've ever seen it, in what's called residential retrofits, which is existing home upgrades."
He tells KBND News the sun-setting tax credits affect both traditional and ductless heat pumps and some gas furnaces. "Once this sunsets, that's a lot of money that could have been put towards what we call 'return on investment' in the system. Because any time you put an energy efficient system into a home that's more energy efficient than what was there, it's going to lower the utility bill. So, the opportunity to get that return on investment is helped by the tax credit, and if you don't get the tax credit, it's going to take longer to get that return on investment."
Marchington says some of the tax rebates have been in place for nearly 40 years.