2012 HVAC Tax Credits
What
if you could make home improvements that increase your comfort, lower your
energy costs, add value to your home, and do something good for the
environment? And what if you could get some money back from Uncle Sam at the
same time?
Updated
Tax Incentives for Homeowners
Part
of the tax extender bill passed by Congress in December 2010 made significant
changes to tax incentives for federal taxpayers who install qualified energy
efficient retrofits in their home, including higher efficiency heating,
ventilation, and air conditioning (HVAC) equipment in their primary residences.
An eligible taxpayer may claim up to $500 in tax credits, subject to caps based
on the type of equipment installed.
You
may now qualify for tax credits equal to 10% of the costs (up to a $300 limit)
for installing a high efficiency central air conditioner, heat pump, or hot
water heater. You may also qualify for tax credits equal to 10% of the costs
(up to $150 limit) for installing a qualified furnace or hot water boiler. A
smaller tax credit of 10% of the installed costs (up to $50 limit) is available
for installing a system with an advanced main air circulating fan.
But
you have to hurry because these tax credits are only available for improvements
made in 2011. Not taking advantage of this incentive just leaves money on the
table.
What
Is Considered a High Efficiency Unit?
A split system central air conditioner must meet or exceed 16 SEER and 13 SEER;
package system central air conditioners must meet or exceed 14 SEER and 12 SEER.
An
air source heat pump
must meet or exceed 15 SEER and 12.5 SEER and 8.5 HSPF, in order to qualify for
the tax credit. Package heat pump systems must meet or exceed 14 SEER and 12 SEER and 8 HSPF.
Natural
gas furnaces, propane furnaces, natural gas hot water
boilers, propane hot water boilers, oil furnaces, and oil hot water boilers all
must meet or exceed 95% AFUE.
For
the advanced main air circulating fan credit, the fan must use no more than 2%
of the furnace’s total energy. If the fan is qualified, but the furnace is not,
you will not be able to take 10% off the cost of the entire furnace. Ask your
HVAC contractor to break out the cost of the fan in your bill. You can get a
10% tax credit on the cost of the fan alone. If the furnace is qualified, but
the fan is not, you can still take the 10% tax credit on the full cost of the
furnace.
If
I claimed more than $500 in tax credits under the previous tax credit programs,
am I still eligible?
No.
The new law reinstates the lifetime tax credit limits, which disqualify any
homeowner who has claimed more than $500 in 25c tax credits since January 1,
2005, from any further credits.
Why
You Should Consider an Upgrade
Advances
in technology over the last ten years mean that today’s higher efficiency HVAC
equipment uses less energy, runs more quietly, and provides improved indoor air
quality and comfort. And by using less energy and improved refrigerants, your
new HVAC equipment is better for the environment.
Most
homeowners would like to reduce their energy bills with higher efficiency HVAC
equipment, and these tax credit help make the initial investment more affordable.For more information visit www.evenflowmechanical.com
