Did you know that purchasers of high efficient heating, cooling and water heating equipment can qualify for federal tax credits for up to 10% of the cost of the qualifying systems? The “American Taxpayer Relief Act of 2012”, also known as the “Fiscal Cliff Bill” which passed on Tuesday January 1, 2013, extended and changed several tax incentives. These credits are available for systems placed in service from January 1, 2012 through December 31, 2013 and can total up to $500.00.
Natural gas and propane furnaces and boilers, with an AFUE (Annual Fuel Use Efficiency) of 95% or better, can qualify for a tax credit of up to $150.00 A new central air conditioning or heat pump system with a SEER (Seasonal Energy Efficiency Ratio) of 16 or better can qualify for credits up to $300.00.
Special gas and propane water heaters with an Energy Factor of .82 or a thermal efficiency of at least 90% can also qualify for up to $300.00 in federal tax credits. All in all, the limit is $500.00 for all the HVAC improvements and these purchases must be for your primary residence only!
All Geothermal heatpumps installed after January 1, 2009, will continue to enjoy a 30% tax credit with no UPPER LIMIT. Certain energy saving windows, insulation and duct sealing may qualify for the credits. It is important to discuss the Federal Tax Credits with your accountant and go to the Neighborhood Energy Connection or the Tax Incentives Assistance Project for further information and clarification.
If your heating and air conditioning equipment is over 12 years old this may be the time to consider replacement and take advantage of both the energy savings you will enjoy but these valuable tax credits as well. Call ServiceMark. We’ve got answers to your home’s energy needs. 1-800-474-5200.