Tax Credits Might Be Your Saving Grace When It Comes to Energy Efficiency
Replacing your existing HVAC equipment and appliances with high-efficiency models will trim your monthly energy expenditures while also helping to reduce overall energy use in your community. Consumers who want to make the switch, however, are sometimes surprised to find that energy-efficient equipment can cost substantially more than lesser models. The recently renewed 25C tax credits can help ease the cost of shifting to high-efficiency products.
The 25C tax credits can be applied to the individual income taxes of homeowners who purchase qualifying energy efficient heat pumps, central air conditioners, furnaces, boilers and water heaters between January 1, 2012, and December 31, 2013. Credits can only be applied to equipment purchased for a main residence, not rental units or second homes. The 25C credits cannot be applied if you have already received energy tax credits since January 1, 2005.
Heat pumps
- $300 credit: Electric air-source heat pumps with a minimum seasonal energy efficiency ratio (SEER) of 15, energy efficiency rating (EER) of 12.5, and heating seasonal performance factor (HSPF) of 8.5.
- $300 credit: Packaged heat pump systems with a minimum SEER 14, EER 12, and HSPF 8.
Central air conditioners
- $300 credit: Split system central air conditioners with a minimum SEER of 16 and EER of 13.
- $300 credit: Package system central air conditioner with a minimum SEER of 14 and EER of 12.
Furnaces and boilers
- $150 credit: Oil, natural gas or propane furnace or hot water boiler carrying an annual fuel utilization efficiency (AFUE) 95 or higher.
Water heaters
- $300 credit: Oil, propane or natural gas water heater with an energy factor (EF) of at least 0.82 or a minimum thermal efficiency of 90 percent. Submit IRS Form 5695, Residential Energy Credits, with your individual income tax return to claim the credit. Contact your tax preparation professional for more specific instructions on claiming 25C HVAC tax credits.
For more information on the 25C tax credits and how you can use them to save money when switching to high-efficiency equipment, contact Sobieski Services.
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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