nancy

of course, the credit only applies to one of the systems.

unless you are just flushed with money, I would go ahead and replace one of the systems, either the oldest, the largest of the two systems, or perhaps the system giving you the most trouble.

IMO

Nancy,
Just my opinion - my Trane of 15 years just went out and have shopped heavily to replace whole system as that is the new requirement with the phase out of R-22.
At 15 years , my opinion is that is will just be a matter of time (short time at that) before it goes.
The tax credit is a nice incentive and definitely helps defray what will be an inevitable cost for you.
From everyone I have talked to, an average 'expected' age of Trane or any older heat pump system is around the 15 year mark, so you are at the very upper end already.
Unless you have confidence that the Tax Credit will be extended, I would take the cost hit now and use the credit to offset the cost.
I understand that it is a tough decision as your current unit is working. But if it dies in say early next year and the tax credit is gone, you will probably feel awful.
Given you do not have to replace it, you have ample time to shop the market and get competitive bids for a replacement.

nancy

these are my minimum specs for a new HP system. both outside and inside units should be replaced to have a properly matched system.

15 SEER, 12.5+ EER, 9 HSPF
best matching VS air handler
full BTUs in both cooling and heating for your rated size
R-410a refrigerant(same as Puron)
scroll compressor preferred
electronic demand defrost preferred
thermostat with "dehumidify on demand" feature
staged backup heat strips
new and correctly sized refrigerant lineset

you want a thorough inspection of your ductwork system. size, overall condition, supply and return lines, insulation qualities, leak test, etc.

any hot/cold spot issues in your home should be addressed.

I would only use authorized dealers for the various brands that provide quotes. see mfg websites.

I would look at Trane/AmStd,Rheem,Carrier/Bryant.

IMO

Tigerdunes - any reason you wouldn't consider a YORK?

I would take advantage of the rebates. Those systems are old. 30% of a system cost is some real savings. Its probably better to replace now rather then dump money into fixing down the road.

I would think the 30% can be applied for to first 5,000 of the system cost regardless if one or 2 systems though. I could be wrong. You can consider other brands too. You can get more value for your money and be just as happy. I"m a York fan also. York makes less expensive brands like luxaire which are good.

I would agree that if it ain't broke don't fix it. If I were a betting person I would bet that the tax credits are going to be extended. It is also important to understand that the tax credit is just that. It is a tax credit that can be applied to reduce your taxable income. That does not mean that you can count on any or all of the $1500. Many businesses are leading people to beleive that the $1500 is like a rebate. In addition many dealers are also jacking the prices of their equipment up to maximize revenue as a result of the rebates. HVAC is a very competitive business and even if the tax credits end it will remain that way. If you recall when the auto industry first came out with rebates. When they ended them they saw a large decline in their business because many filks were determined to wait untill they reintroduced them. The auto industry has been plagued since. I would reccomend you speak to your account about the tax credit to determine if it is even to be considered based on your income etc.

You might also remember that the tax credit is paid for by people who pay taxes - it isn't really free. Also, it may be diminished by the AMT for instance.

nancy

it appears you hsve received great service from two old Trane heat pumps. Trane has long been the leader in HPs ever since purchasing the GE residential division with the Weathertron technology.

if longevity and dependable service are important to you, then why consider a York?

IMO

and BTW, I agree with David, The tax credit business is just an Obama stimulus gimmick. Cost goes to the deficit and national debt. Homeowners have to repair or replace HVAC regardless of tax credit. Rarely do you get something for nothing.

<. it is also important to understand that the tax credit just that. a can be applied reduce your taxable income.>

I don't believe this is correct.

A tax credit directly reduces your tax bill, not your taxable income. Big difference.

A tax credit reduces your tax bill, as long as you have one; we generally do. A tax deduction is what reduces your taxable income and thereby reduces the tax you owe somewhat. Tax credits are much more desirable. HR4312 deals with the AMT issue and it appears that it will clear the Senate this week, but of course, there is no guarantee. At any rate, I'm clear on the tax implications.

What I'm baffled by are the comments ala "the tax credit is paid for by people who pay taxes and only increases the deficit" - so does that mean no one should use it? or I should only use the tax credit if I pay taxes (which I do, and how!)? Of course it is paid by tax payers. It's also there to encourage folks to replace their old, outdated HVAC equipment with more energy efficient units. Which applies to my situation. Why shouldn't I consider the tax credit? I'm baffled by that. Are you trying to convince me that if you had outdated units you wouldn't apply for the tax credit if you were eligible because you feel its wrong to do so? If so, I'm unconvinced and not in agreement.

At any rate, my HVAC company's answer on the York is that they have customer service far better than their competitors and that Trane has fallen somewhat in their quality of late. Nothing against Trane, they are still good, but my company feels York is a bit superior. Which, incidentally, they would NOT have said 10 years ago, but times and companies change. Reviews of York Affinity seem high. Still researching.

Don't forget that there may be utility and manufacturer rebates that factor into the cost equation as well.

The attached link may be of help to determine what is available to you.

Here is a link that might be useful: credit and incentive link by state

Don't be baffled. Its just that it isn't money that came out of free air. I'm glad you pay taxes. But you are talking about taking money from the government to replace a system that is working fine. Does that not seem possibly wasteful to you?

People get on here sometimes and talk about system x and system y. System y cost only $200 more because it qualifies for the tax credit. And system y will save you $40 a year. Seems like a good deal but don't forget that the feds (all of us - or the 55% who pay taxes) also forked over $1500 for this overkill system (in the particular person's climate). That isn't money made out of thin air - it was paid for by all of us (or 55% as the case may be).

People treat it like it is a discount from the manufacturer with no downside. The downside is that it costs the government (and all of us) money.

So yes - take the tax credit if it makes sense to do so. But realize that it costs all of us money and it isn't some magical gift from above. That should be considered (IMO) as part of the equation when deciding to replace functioning equipment. Now - that being said - I do think this component of the stimulus package is one of the better ones. And you are replacing Seer 10 equipment so that is respectable. Don't get me started on cash for clunkers....

Am I bitter? - a bit.

It is clear that you understand that the tax credit is , in fact, real money ( as you pay taxes)- albeit you don't realize it until April 15, 2011.
As to 'taking money from the gov't'.. I view it as 'keeping more of your own money'.. Especially when all the incredible wasteful spending and idiotic programs benefit very very few tax paying individuals.
It should be borne in mind that it is gov't regulations requiring the switch from R22 that is causing homeowners to bear a huge cost to replace whole systems versus repairing existing systems ( due to incompatibility of outdoor/indoor units - R22 vs. R410A). Individuals are bearing an enormous cost to 'save the planet'.
Given the track record of current administration, I find it doubtful that they will renew the existing tax credit program. At some point, people will realize that money is not free and one should not discount that many of these programs are political in nature and eventually politics runs its' course and they move on.

Whether it is worthwhile program could be debated - but won't change the facts that it is there and in place- now. Once allocated funds are exhausted it will end or any excess monies will go to some other program
Given the age of your systems - I think it is clearly a case of 'pay me now' or 'pay me later' with the caveat that if take the former- you get an overall reduced cost and a new upgraded system that extends the life ( and reduction of future expenditures) of your home.
If anyone would guarantee another 10-15 years on your existing system, I would have another opinion, but I think it is reasonable to assume that the life of your current system is at the top of range of its' life expectancy.