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Cash in Your Home Energy Tax Credits Before They Expire at Year’s End

Cash in Your Home Energy Tax Credits Before They Expire at Year's EndAll this year, homeowners have had the chance to upgrade HVAC equipment and qualify for federal home energy tax credits in return. And since last January, the credits have applied to not only 2013 energy-efficient upgrades, but retroactively to purchases made in 2012. Now, this incentive is coming to an end.

Do you have an aging furnace, air conditioner, heat pump or water heater you don’t think will make it through another season? Think about replacing sooner rather than later; you have until Dec. 31, 2013 to make your move before the home energy tax credits expire.

Qualifying equipment

  • Furnace: $150 in home energy tax credits are available for qualifying natural gas, oil or propane furnaces. As with other HVAC systems, to qualify, the furnace needs to meet minimum efficiency guidelines. Look for an Annual Fuel Utilization Efficiency (AFUE) rating of 95 percent or higher. This rating indicates that 95 percent of the fuel burned is converted into heat for your home. The most efficient furnaces today are nearly 100 percent efficient.
  • Central air conditioner: Central A/Cs are more efficient than window units, and eligible models qualify you for $300 in home energy tax credits. Look for a split system rated at 16 SEER and 13 EER or higher. If you opt for a packaged system, it must have ratings of at least 14 SEER and 12 EER. The most efficient SEER ratings available today climb into the mid-20s, so these requirements shouldn’t be difficult to meet.
  • Heat pump: $300 in home energy tax credits are available if you purchase a qualifying air-source heat pump. Split systems must have a Heating Season Performance Factor (HSPF) of at least 8.5; a Seasonal Energy Efficiency Ratio (SEER) or 15 or higher; and an Energy Efficiency Ratio (EER) of at least 12.5. Packaged systems are slightly more lenient with requirements that include 8 HSPF, 14 SEER and 12 EER or higher to qualify. The highest HSPF available today is 10.

To apply for home energy tax credits, fill out the 2013 version of IRS Form 5695 and submit it with Form 1040 before April 15, 2014.

For more information about taking advantage of federal home energy tax credits before the end of the year, please contact us at Team Bob’s Heating Cooling Plumbing in Traverse City today.

Our goal is to help educate our customers in Traverse City, Michigan and surrounding areas 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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