The Restored Energy Tax Credits Will Soon Be Retired--Take Advantage While You CanThe majority of energy tax credits offered through the federal government are set to expire at the end of 2013. Homeowners who are interested in purchasing a new energy-efficient cooling or heating system, and other various energy-using appliances, can still take advantage of the credit if the purchase is made before Dec. 31, 2013. (Federal tax credits for qualifying geothermal and solar systems continue through 2016.) This is the last time you’ll be able to upgrade your appliances, save money on energy costs, and get partially reimbursed for the upgrade.

As it stands now, homeowners can claim up to 10 percent (up to $500) for one or more qualified energy-efficient improvements. These include cooling and heating equipment, insulation, roofing, windows, doors, and hot water appliances. The amount taxpayers can claim on each type of upgrade depends on the individual cap.

Homeowners can save 10 percent, or up to $300, on qualified central cooling systems. If the cost of your high-efficiency central air conditioner or heat pump is $3,000 or more, you will receive a $300 tax credit. A high-efficiency natural gas, propane or oil furnace will earn you a tax credit up to $150. If you’ve been thinking about buying a furnace, heat pump or air conditioner, you should consider moving now. Look for energy-efficient products to make sure they’re eligible for the energy tax credits.

How to Apply

As a qualified homeowner for the tax credit, you will need to fill out the residential energy tax credit form 5695. Then you will have to place the number onto line 52 of your  federal 1040 tax form or line 49 of your 1040nr. The federal Energy Star program recommends that you save your receipts and manufacturer’s certification statement for your own files.

For more information on how you can benefit from federal energy tax credits, please contact the HVAC professionals at Mowery Heating, Cooling and Plumbing. We’ve been servicing the Indianapolis area for more than 40 years and are ready to help you find the energy-efficient appliances you need for the tax credit.

Our goal is to help educate our customers in Brownsburg, Indiana and surrounding areas about energy and home comfort issues (specific to HVAC systems). 

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