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Tax Credits For High-Efficiency HVAC Installations Extended

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

  • 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.

Qualifying equipment

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

Other details

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.