Restored Energy Tax Credits: A Nice Little Something for Homeowners in the Fiscal Cliff Deal

There’s good news to come out the fiscal cliff deal for homeowners looking to retrofit their existing homes with more efficient HVAC equipment or install high-efficiency systems in their new homes. The 25C energy tax credits, which expired at the end of 2011, are back on for heating and cooling equipment, as well as water-heating systems. Take upgrades a step further and you can get tax credits for upgrades to the home’s structure. Find out what equipment and materials qualify for the credits, and the general guidelines you must follow.

First and foremost, the equipment you purchase must meet qualifying criteria, which simply ensure that the systems are high efficiency, consuming less energy and saving homeowners money. Here’s the criteria:

  • Air-source heat pumps with an heating seasonal performance factor (HSPF) of 8.5 and a seasonal energy efficiency ratio (SEER) of 15 qualify for $300.
  • Central air conditioners with a SEER 16 qualify for $300.
  • Natural gas, propane or oil water heaters meeting an energy factor (EF) of 0.82 qualify for $300.
  • Heat-pump water heaters with a 2.0 EF qualify for $300.
  • Furnaces and boilers with an annual fuel utilization efficiency (AFUE) of 95 percent qualify for $150.
  • Advanced main air circulating fans qualify for $50. They must consume 2 percent or less of a furnace’s total energy use.
  • Materials that improve home performance include insulation, windows, exterior doors and roofing. Credit amounts vary.

There are a few other stipulations included in the energy tax credits. These include:

  • The credits are for HVAC equipment installations made after January 1, 2012, and before December 31, 2013.
  • You can claim up to $500, combining any of the equipment or material options to reach the limit.
  • Upgrades must be made to a primary residence. Secondary and vacation residences don’t qualify.

Get in touch with the experts at Team Bob’s Heating Cooling Plumbing to find out if your 2012 HVAC upgrade qualifies for energy tax credits or for help selecting an upgrade for installation in 2013. We serve Grand Traverse County and the surrounding areas with quality cooling and heating solutions, and plumbing maintenance, installation and repairs.

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 energy tax credits and other HVAC topics, download our free Home Comfort Resource guide.

Image courtesy of Shutterstock


Website Design and Development by Traverse Web