On Jan. 2, 2013, legislation to avoid the so-called Fiscal Cliff was signed into law by President Obama. This legislation included retroactive federal tax credits for heating and cooling systems, as well as hot water heaters. Now that IRS Tax Credit 25C is back in place, homeowners can claim credits for qualifying energy-efficient appliance purchases, even if the purchase and installation occurred during the 2012 calendar year. Already existing tax credits for qualifying solar and geothermal systems will continue as well.
These tax credits also will benefit anyone thinking about replacing his or her heating or cooling system this year. The tax credits will continue through 2013.
What appliances qualify for the 25C tax credit?
Homeowners will be able to claim up to $500 in tax credits for qualifying appliances that were purchased after Dec. 31, 2011.
Water heaters
- You can claim up to $300 in credits for installing an electric heat pump water heater with an energy factor of 2.0 or greater.
- $300 in credits for propane, natural gas or oil fueled water heaters with a thermal efficiency of at least 90 percent or an energy factor of .82 or greater.
Furnaces and boilers
Natural gas, oil, or propane furnaces and boilers qualify for up to $150 in tax credits each as long as they have an AFUE of at least 95 percent.
Air conditioners and heat pumps
Homeowners will receive up to $300 in tax credits, depending on the A/C and heat pumps’ SEER and EER ratings as per the highest efficiency tier as of Jan. 1, 2009 (all rating numbers are required minimums):
- Split system central air conditioners (16 SEER, 13 EER)
- Packaged central air conditioners (14 SEER, 12 EER)
- Split system electric heat pumps (8.5 HSPF, 15 SEER, 12.5 EER)
- Packaged electric heat pumps (9.0 HSPF, 14 SEER, 12.0 EER)
Your tax accountant can help you file your 2012 energy-efficient tax credits for eligible heating and cooling systems. Save copies of your receipts, which include your date of purchase.
If you would like to learn more about tax credits for heating and cooling systems, please contact us at Hansberger Refrigeration & Electric Company. We can help to get your paperwork in order and ensure that you choose appliances that meet the tax incentive qualifications.
Our goal is to help educate our customers in Yuma, Arizona about energy and home comfort issues (specific to HVAC systems). For more information about tax credits and other HVAC topics, download our free Home Comfort Resource guide.
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