If you’ve only heard about negative outcomes of the federal “fiscal cliff” agreement, you may be pleased to learn that reinstatement of lapsed energy tax credits are part of the agreement. With access to the energy tax credits, homeowners can now more affordably upgrade their HVAC equipment, earning cash back when it comes time to file a return, increasing energy savings over the life of the new systems and promoting improved home comfort.
Tax credit details
Before you buy, learn the guidelines for qualifying for the federal energy tax credits:
- Equipment must be installed before Dec. 31, 2013.
- The credits are retroactive; equipment installed during 2012 also qualifies — if it meets the criteria outlined below.
- Install the equipment in your primary residence only; vacation and secondary homes don’t qualify.
- The energy tax credit is capped at $500, but you can combine multiple purchases to reach that amount.
High-efficiency heating and cooling and water-heating systems qualify for the tax credits, and the equipment must reach at least these ratings:
- Water-heating equipment – Heat-pump water heaters qualify for $300 when they meet 2.0 Energy Factor (EF), while gas/propane/oil systems must achieve a 0.82 EF rating.
- Air conditioning – Systems starting at Seasonal Energy Efficiency Ratio (SEER) 16 earn $300.
- Furnaces and boilers – Equipment that achieves at least a 95 percent Annual Fuel Utilization Efficiency (AFUE) qualifies for $150.
- Air-source heat pumps – Earn $300 for units that start at Heating Seasonal Performance Factor (HSPF) 8.5 and SEER 15.
The energy tax credits don’t stop with this equipment. Improve your home’s energy efficiency, and you can qualify for additional benefits. Install insulation, upgrade windows, replace an old roof or install efficient exterior doors that meet varying criteria, and you can take advantage of the program. Your HVAC contractor or installer can help you determine which improvements meet the tax benefit program’s guidelines.
Get in on the energy tax credits this year. It may just be the boost you’ve needed to take the plunge and upgrade your systems. Mowery Heating, Cooling and Plumbing is happy to help. Give us call today or visit our website for more information. We’ve served homeowners in greater Indianapolis since 1970.
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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