On Jan. 1, 2013, the American Taxpayer Relief Act of 2012 was extended, which continues tax credits for energy efficiency upgrades to existing homes, including purchases of heating, cooling and water heating equipment made in 2012 and 2013. At City Wide Heating and Cooling, many of our customers will be able to take advantage of tax credits on their 2013 taxes because they installed a new high-efficiency furnace, AC, or heat pump. If you’ve been considering installing a new furnace or air conditioner, now is the time. It could mean hundreds of dollars in your pocket if you act quickly.
How Much Is the Government Offering in Tax Credits?
You must make sure your unit qualifies. Here are the qualification specifications and corresponding tax credits:
- Air conditioners qualify for up to a $300 tax credit and must have a SEER of 16 or greater an EER or 13 or greater if it is a split system. If it is a package system, SEER must be 14 or greater and EER must be 12 or greater.
- Natural gas, propane, or oil furnaces are eligible for up to $150 tax credit and must have an AFUE of 95 or greater.
- Heat pumps are also eligible for up to a $300 tax credit. Split systems must have an HSPF greater than 8.5, an EER greater than 12.5 and a SEER greater than 15. For package systems, HSPF of 8 or higher, EER of 12 or higher and a SEER of 14 or higher.
There are also tax credits for tankless gas water heaters, high-efficiency gas boilers, and heat pump water heaters. So be sure to claim them if you’ve had any of these installed.
The maximum amount an eligible homeowner may receive in tax credits for improvements is $500. If you have already claimed credits of $500 or more from improvements made in any year prior, you are ineligible to claim new credits for any new improvements made during 2013.
Save Energy and Money with Tax Credits
With government tax credits for high-efficiency furnaces and ACs, not only will you save on energy bills, but you’ll save on your taxes too. But you must act quickly. Your new furnace must be purchased before the end of the year, so there are just a few weeks left. Call City Wide Heating and Cooling today and we’ll help you choose the right heat pump, furnace, or AC to install in your home and get you some great tax credits.