A few years ago the federal stimulas plan allowed homeowners to receive upto a $500 Federal Tax credit for installing new heating or cooling systems. Well as expected there would be a few things sliped in with the Fiscal Cliff. One of the items is the return of the 25c tax credit. Even homeowners who purchased qualifing equipment in 2012 can apply for the money on this year tax filing. Plus purchases in 2013 will qualify. This is a tax credit and not a tax deduction so it is real money in your pocket. If you did update your heating or cooling sytem in 2012 and are wondering if you qualify you or your tax professional can contact me for more information. There are some other new rebates availble for Centerpoint Gas, Xcel Energy, and Wrigh Hennipen Electric customers also for 2013, stay tuned for more details.
2012/2013 Tax Credits (25c) for High-Efficiency HVAC and Water Heating Equipment
On January 1, 2013, the U.S. Congress passed the American Taxpayer Relief Act of 2012 for federal taxpayers installing qualified energy-efficient heating, cooling and water heating equipment in their home. Purchasers can take tax credits of up to 10% of the installed cost. The maximum credit is $500 with the actual amount dependent on the limits placed on the type of equipment installed.
The credits are available for systems placed in service from January 1, 2012, through December 31, 2013.
- Taxpayers that have taken more than $500 in 25c tax credits since January 1, 2005, are not eligible for any further credits.
Qualified equipment includes:
- $300 tax credit limit for central split-system air conditioners meeting or exceeding 16 SEER and 13 EER.
- $300 tax credit limit for split-system air-source heat pumps meeting or exceeding 15 SEER, 12.5 EER and 8.5 HSPF.
- $300 tax credit limit for package air conditioners and package gas/electric units meeting or exceeding 14 SEER and 12 EER.
- $300 tax credit limit for packaged heat pumps and packaged dual-fuel systems meeting or exceeding 14 SEER, 12 EER and 8 HSPF.
- $150 tax credit limit for furnaces (natural gas, propane or oil) meeting or exceeding 95% AFUE.
- $50 tax credit limit for advanced main air circulating fan using no more than 2% of the furnace’s total energy.
- $150 tax credit limit for boilers (natural gas, propane and oil) meeting or exceeding 95% AFUE.
- $300 tax credit limit for electric heat pump water heaters with an energy factor of at least 2.0.
- $300 tax credit limit for natural gas, propane and oil water heaters with an energy factor of at least 0.82 or a thermal efficiency of at least 90%.