HVAC Tax Credits Back On For 2013

Passage of the American Taxpayer Relief Act early this year has made this an ideal time to make energy-efficiency upgrades in your home. Congress has restored homeowner tax credits that expired at the end of 2011. The 25C tax credits can now be applied to high-efficiency furnaces, heat pumps, boilers, central air conditioners and water heaters.

The tax credits are effective throughout 2013 and are retroactive to the beginning of 2012, which means that systems purchased and installed from Jan. 1, 2012 to Dec. 31, 2013 qualify. You must purchase the system or systems for your primary residence. You cannot use the credits for a rental property that you own. Here’s a breakdown:

Furnaces and boilers

A $150 credit for a natural gas, propane or oil furnace or a hot-water boiler with an annual fuel utilization efficiency of 95 percent or more.

Heat pumps

  • A $300 credit for a high-efficiency¬†air source heat pump with a minimum seasonal energy efficiency ratio of 15, an energy efficiency rating of 12.5 and a heating seasonal performance factor of 8.5.
  • A $300 credit for a packaged heat pump system with a minimum SEER rating of 14, a minimum EER of 12 and a minimum HSPF of 8.

Central air conditioners

  • A $300 credit for a split-system central air conditioner with a minimum SEER rating of 16 and an EER of at least 13.
  • A $300 credit for a package-system central air conditioner with minimum SEER rating of 14 and an EER of at least 12.

Water heaters
A $300 credit for an oil, propane or natural gas water heater with an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent.

Contact your tax professional for specific instructions on how to claim the 25C tax credits.

Balance Point Heating & Air Conditioning serves the HVAC sales, maintenance and repair needs of customers in Fort Collins and neighboring Colorado communities. Contact us for more information on the newly restored HVAC tax credits and for advice on systems that qualify for the credits.

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