Finally got the quote from the 2nd Trane dealer: Furnace: XV95 + Honeywell VisionPro IAQ, new air supply ducting to upstairs bedroom, new cold air return on main - $5865. Furnace Model No. TDH2B080A9V3VA This has an output of 49,400/76,000 BTUH for stage 1 and 2. My current 80% AFUE Heil is rated 75,000 BTUH input, so this XV95 has at least 25% more heating capacity. Heat Pump Option: XL15i - $5905 complete. Model No. 4TWX5036B1000A (3 ton capacity, house is 2300 sq ft, 2-story) Installed with Trane Coil, Model No. 4TXXCB036BC3HCA (other dealer quoted a 4TXCB036BC3HCA, so maybe the above is a typo?) ARI Ref# 1384223 Cooling Capacity, 34800 EER (cooling), 11.40 SEER (cooling), 13.5 Heating Capacity @ 47F, 37200 Region IV HSPF (heating), 8.3 Heating Capacity @17F, 24200 This doesn't exactly look like a very stellar system combination for the price as none of the specs on the HP/coil combo would qualify it for the $1500 tax credit. I do believe the XV95 would qualify however. The other problem is I don't think the furnace or the HP would qualify for our local utility rebate of $350 since you can't get the rebate on a 90%+ furnace if installed as a backup system with a HP, and I don't think the HP listed here would qualify on it's own. Guess I would have to install the furnace and coil 1st, claim the rebate, then install the HP or AC if I felt like it. It's all too damn confusing. Pricing from all the dealers is pretty close, but the quotes are not exactly apples to apples so it is a bit hard to judge. I thought the XL15i had much better efficiency ratings that listed above. Think I need a quote on an AC unit instead of the HP as I still don't like the idea of the 95% AFUE furnace just sitting there most of the time. Would love any input or suggestions.

You'll find that drying the home which has adapted to the humidity may present a few problems. Furniture and wooden floors will shrink some and may cause chairs to become loose and floors to gap. It's best to slowly drop the humidity and at constant levels. It's a good idea to keep the humidity at or near 45-55% for some time. Comfort zones are different as you dry the air. A home at 74 degrees with a humidity of 70% may feel muggy and warm, but at 45% feel very nice and cool. You may try a dehumidifier with the capacity for a room or two and see how that does first, but the house must be closed up and doing so may mean a warmer home. If it were me, I would try a window a/c combined with a dehumidifier and adjust the temperatures as needed. We are very humid here too and I seem to do well with 78 degrees with a humidity of 50% with the cieling fans operating. Reducing the amount of lights and appliances in the home will keep it cooler as well. Cieling fans will put out heat some, so they should run only when your in that room. Remember- an a/c must deal with removing the latent heat (humidity) before it will actually be able to cool the air in the home.

Hockeychik: It really doesn't matter what I pay in Maryland because my bills (and everyone else's) are based on many variables including house size, house age, construction, lifestyle, # of people living in the house, utility prices, phases of the moon, etc. Too many variables make up utility costs. If you replace a 1988 80% effficient gas furnace with a 2007 80% efficient gas furnace, you gain nothing in efficiency (but you do get a new gas furnace). If you get a 95% efficient gas furnace, you get 15% more efficient in gas usage (a 15% savings in your heating bill), a variable speed fan in the new air handler, and may qualify for the Federal tax credit that you want. The only "warning" is that a new, high-efficient, gas furnace may require modifications to your flue such as installation of a flue liner. I am not knowledgeable on gas furnaces so you need to investigate this so that you are educated on gas furnace requirements. If your a/c is 19 years old (mine was 21), you can assume that it was a 7 to 8 SEER unit. By going to 14 SEER, you should save about 40% on the cost to run your a/c per hour of run time. It's OK that you are not sure what to do. This is a big decision with big $$ so take your time and think it through. Again, good luck.

tigerdunes, hvtech42, I want to start by saying that I am really grateful for your help. Thank you. Please excuse my ignorance because I am not able to understand Hvtech's comment "With an 80% you would have the freedom to put in the attic, too." Does it me 97% cannot be installed in the attic or should not be? More over here is what I understood from the answers about the following questions I had 1. Do I have to Pair AC and Furnace? If so XV95 furnace and XB13 AC is that a right fit? Ans: No one spoke about AC/Furnace pairing but consensus is that XV95 is good and XB13 can be upgraded to XR13. 2. There is a price tag of XV95+ XB13+Ducts+ electricals= $11K. Is it appropriately priced? Ans: Hard to answer the question, because it depends on the installation. However major cost should be for the furnace and Heater. I would count Ducts at best $3K . So again is it the right price? 3. Million dollar question, IS trane a good dependable brand? Ans: From comments, all brands are equal installation matters. Then follow up question is How do I ensure that company is going to install well? What should i Be looking for in terms of clues for good or bad AC installation. I checked on Yelp and there are mix reviews. 4. What are the questions I should be asking or things I should be aware of ? Ans: Apparently I should get the exact model number instead of marketing models such as XV95 and XB13. 5. Should I install ducts in the Attic or in the crawl space? Ans: No Answer 6. For insulation do I do it before or after the Duct/HVAC installation? Ans: No answer