Restored Energy Tax Credits: They’ll Be Retired in Just a Few Months
If you want to take advantage of reinstated federal energy tax credits, you better get moving; they expire on Dec. 31, 2013. Here’s a look at what qualifies for the tax credits, as long as you make your purchase and installation in the next few months.
- Central air conditioners: $300 tax credit. Split system air conditioners must be at least 16 SEER (Seasonal Energy Efficiency Ratio) and 13 EER (Energy Efficiency Ratio). Packaged systems must be rated 14 SEER and 12 EER or higher to qualify. The credit is 10 percent of the system cost, up to $300. Air-source heat pumps: $300 tax credit. Split system heat pumps must achieve at least 15 SEER, 12.5 EER and 8.5 HSPF (Heating Season Performance Factor).
- Combustion furnaces and boilers: $150 tax credit. Natural gas, propane or oil-fired furnaces and boilers must be rated at 95 percent AFUE (Annual Fuel Utilization Efficiency) or higher to qualify. Water heaters: $300 tax credit. Gas, prone or oil-fired water heaters must have an EF (Energy Factor) of at least 0.82 or a thermal efficiency of 90 percent or more. Electric water heaters need an EF of 2.0 or greater.
- Insulation: 10 percent of the cost excluding installation, up to $500. Many types of insulation qualify, including bulk products (batts, rolls, rigid boards, blown-in, expanding spray, and pour-in-place) as well as products that provide air-sealing qualities (weatherstripping, caulk, canned spray foam and house wrap). To apply for federal energy tax credits, fill out Form 5695, enter the tax credit information on line 52 of Form 1040, and submit both forms with your 2013 taxes (by April 15, 2014). Keep in mind that the residential energy tax credit limit is $500. This applies to any equipment you installed after Jan. 1, 2005 and will install before Dec. 31, 2013.
Packaged systems must be at least 14 SEER, 12 EER and 8 HSPF to qualify for energy tax credits.
For more information about qualifying for energy tax credits, please contact Sobieski Services, Inc. Our goal is to help educate our customers in Delaware, Pennsylvania, Maryland and New Jersey about energy and home comfort issues (specific to HVAC & plumbing systems).
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