Restored federal tax credits may be the boost you need to proceed with a high-efficiency HVAC installation. In passing the fiscal cliff package at the beginning of the year, Congress approved the tax benefits for heating and cooling equipment that meets qualifying efficiency guidelines. Find out if you can take advantage of the tax credits.
Tax credit guidelines
Tax credits are retroactive, and homeowners who installed high-efficiency equipment in 2012 can claim the credits. Here are some highlights of the guidelines.
- The credit is capped at $500.
- You can combine credits, installing more than one piece of equipment or upgrade, for any amount up to the limit.
- The credits expire on Dec. 31.
- All equipment must be installed before the credits expire.
A goal of the tax credits is reducing greenhouse gas emissions and helping homeowners save on energy costs. Upgrades that meet the efficiency criteria are eligible for tax credits of:
- $300 for air-source heat pumps with a minimum heating seasonal performance factor of 8.5 and a minimum seasonal energy efficiency ratio of 15.
- $300 for central air conditioning systems with a minimum SEER rating of 16.
- $300 for heat pump water heaters with an energy factor of at least 2.0.
- $300 for water heaters powered by natural gas, oil or propane with an EF rating of 0.82 or greater.
- $150 for boilers or furnaces with a 95 percent annual fuel utilization efficiency.
You can also take advantage of tax credits for measures that improve your home’s overall performance. Upgrades to windows, exterior doors, the roof and insulation help to lower energy bills and increase home comfort. Additionally, they’ll boost the performance of your new HVAC system. Credits for these improvements can be combined with credits for HVAC equipment.
Find out if your HVAC installation qualifies, or work with one of our experts to select an HVAC upgrade that qualifies for the tax credits. Contact Blanton’s Heating & A/C. We serve homeowners in the greater Fayetteville area.