Legislation was passed and signed into law last week that resurrected the 25C tax credit for high-efficiency HVAC and water heating equipment. The credit, which had expired at the end of 2011, was extended retroactively for 2012 and 2013. There is a lifetime limit of $500.00 for this credit, meaning if a homeowner has previously claimed the credit (up to $500.00), they will be ineligible to claim it on their 2012 and 2013 tax returns.
As had been the case in 2011, homeowners are eligible to claim up to 10% of the cost of installing high efficiency equipment with the total dollar amount capped depending on the product installed. For example, the maximum amount a homeowner could claim for a qualified air conditioner, heat pump or water heater is $300.00, with a cap of $150.00 for qualified furnaces and water boilers and a $50.00 limit for an advanced main circulating fan.
Quality Efficiency Levels for the credits area as follows:
-Central A/C (split-system): 16 SEER and 13 EER of higher.
-Central A/C (package system): 14 SEER and 12 EER or higher.
-Heat Pump (split-system): 15 SEER/ 12.5 EER / 8.5 HSPF or higher.
-Heat Pump (package system): 14 SEER/ 12EER/ 8.0 HSPF or higher.
-Boilers (natural gas/ oil/ propane): 95% AFUE
-Furnaces (natural gas/ oil/ propane): 95% AFUE
-Advanced Main Circulating Fan: If the fan uses less than 2% of the furnaces (natural gas/ oil/ propane) total energy.
If you have any questions about a system we installed for you in 2012 or are thinking about having a new system installed and want to take advantage of tax credits and any other rebates, please call us at any of our three offices and speak to a member of our sales staff.