There’s good news that came out of the “fiscal cliff” agreement: Homeowners can now access a tax credit for a variety of high-efficiency heating and cooling equipment, and the credits are retroactive for 2012, too. Here’s how the tax credits work and what equipment qualifies.
The evolution of tax benefits
The agreement has made the tax credits from the American Tax Payer Relief Act active again. While those credits, called 25C tax credits, expired at the end of 2011, homeowners who installed qualified high-efficiency HVAC equipment in 2012, and those who install it in 2013, can now take advantage of a tax credit. The plan does not affect tax credits still in effect for alternative energy sources such as wind-turbine, solar or geothermal systems. These credits extend to the end of 2016.
To qualify, the equipment must be installed in a primary residence; however, the residence can be retrofitted with new equipment. The cap for the credits is set at $500, but homeowners can use that credit any way they’d like. Here’s how the qualifications break down for various types of equipment:
- Furnaces and boilers powered by oil, gas or propane with at least an Annual Fuel Utilization Efficiency (AFUE) of 95 percent qualify for $150.
- Central air conditioners with a Seasonal Energy Efficiency Ratio (SEER) 16 and an Energy Efficiency Ratio (EER) of 13 qualify for $300.
- Air-source heat pumps with a SEER 15, EER 12.5 and Heating Seasonal Performance Factor (HSPF) 8.5 are eligible for $300.
- Water heaters powered by oil, gas or propane with an Energy Factor (EF) rating of 0.82, or an electricity-powered heat pump water heater with a 2.0 EF qualify for $300.
- Advanced main air circulating fans that consume 2 percent or less of the HVAC system’s energy consumption are eligible for $5.
There’s more good news. Homeowners can also apply the credits toward improving the home’s efficiency. Qualifying equipment includes:
- Storm windows
- Exterior doors
If you missed out on tax credits in years past, don’t let them pass you by in 2013. For expert advice regarding tax credits, contact Apollo Home Heating, Cooling and Plumbing today! We’ve served homeowners in greater Cincinnati since 1910.
Image via Shutterstock.com
"Ernie & Mike did a superb job on my new furnace and A/C installation. Despite having more than a day’s work to do, they came in and stayed until the job was done. They were organized, efficient, and protected the rest of the house well. Got both furnace and A/C installed the same day. Ernie was courteous, informative, and clearly knew his job better than anyone I’ve encountered before. The units look so good guests now get The Tour of our new system. Apollo is clearly not a fly-by-night company. I would recommend them to anyone in need of a new furnace and/or A/C."
- Jerry A.
"I called Apollo because of a water leak I thought I had in our upstairs shower going into the kitchen. Robbie came and assured me everything was fine & looked at all the other plumbing. He ended up changing a few pipes for our washer & clearing a drain. He was very nice & knowledgeable with all my questions. I ended up signing up for the care plan & was very happy with my service."
- Cassandra B.
"The team at Apollo exceeded my expectations. As a business owner, my attention to the details and commitment to providing excellent service is high. From the sales rep. to the installation team, everyone’s performance was outstanding. For example, the installation team went to great lengths to protect our floors, placing floor runners and across the wood floors and up the stairs. They even were spot washing walls upon their departure. I highly recommend this company."
- Randy B.
"We scheduled an estimate AND a tune-up. We knew something was wrong with our furnace, but hoped we could make it through the rest of the season. Upon telling Bill what our furnace was doing, he warned us immediately what the possible outcome was going to be; a cracked heat exchanger. He watched the flames roll backward, tested carbon monoxide levels, which were so high they meter’s last reading was 5,600 before saying “high”. He immediately shut it down, tagged it, and explained that with levels that high and children in our home he wanted off right away. He continued his inspection and showed us via a camera that not only was it cracked in multiple places, but had holes all over it. He gave us a few options for repairing it; his knowledge as well as genuine concern was beneficial and refreshing. Luckily we also scheduled an estimator, Micah, to come too and we were able to get costs between repairing and replacing (with several options). We decided to replace with a much higher efficiency furnace and one sized properly to our home. Hands down, not only did they both provide us great service and knowledge, but without sounding dramatic, they may have saved our lives. This was our first time calling Apollo, but it won’t be our last."
- Sarah B.
"Apollo is an excellent company. I always receive great service. Alex A. was professional and friendly. He kept me informed during the process of checking my furnace and heat pump to make sure they were working properly. The company makes sure you are notified who is coming and when they are on the way. All my interactions with the company have been wonderful."
- Beverly S.