Thinking I might be able to utilize an energy tax credit I thought it would be nice to now replace the unit with a high efficiency unit. It would cost me more to replace the unit and I would not directly benefit from the lower operating cost although my tenants could. I however would have a more reliable system and I really like the idea of having a unit that uses the newer more environmentally friendly refrigerant.

But the tax credit appears to only be available to homeowners as the tax credit is for the taxpayer's primary residence. So since I don't live at my rental unit and I don't really expect that my tenants want to dish out the 6 grand for a new high efficiency system for me…it appears that there is no tax incentive for this situation.

Am I missing something?

Most tenants are of lower income or are on a fixed income so a new high efficiency unit could really benefit them.

So I am back to thinking I should just make another repair. It is riskier for me because I know yet another repair is in the not to distant future. It is more costly for my tenants and less beneficial for the environment.

I am disappointed. The repair is expected to be $1500. A new high efficiency unit would be $6000. which is a $4500 premium…a $3000 premium would be stretching it a bit for me but I would be willing to go that route if I could.