On Jan. 1, 2013, Congress approved legislation to help avoid the “fiscal cliff” by reinstating many popular tax breaks that originally expired in 2011. The legislation extends energy tax credits to Dec. 31, 2013, and many are also retroactive for 2012. This means you can claim energy tax credits for purchases and installations you made in 2012 along with future upgrades you plan to make before the end of this year.
Here’s what you need to know about your equipment’s eligibility and what the tax credits cover:
- Insulation, Energy Star-compliant roofing and exterior doors: Tax credits cover 10 percent of the cost.
- Energy Star-compliant windows and skylights: Tax credits cover 10 percent of the cost, up to $200.
- Heat pump water heaters: 10% of the cost up to $300 energy tax credits for water heaters with an energy factor (EF) of at least 2.0.
- Oil, propane, and natural gas water heaters: 10% of the cost up $300 energy tax credits for water heaters with an EF of at least 0.82 and a thermal efficiency of at least 90 percent.
- Oil, propane, and natural gas furnaces and boilers: 10% of costs up to $150 energy tax credits for systems with an annual fuel utilization efficiency (AFUE) rating of at least 95 percent.
- Central air conditioners: 10% of costs up to $300 energy tax credits for systems with a Seasonal Energy Efficiency Ratio (SEER) rating of at least 16 and an Energy Efficiency Ratio (EER) rating of at least 13.
- Heat pumps: 10% of costs up to $300 energy tax credits for systems with a Heating Seasonal Performance Factor (HSPF) rating of at least 8.5, SEER of at least 15, and EER of at least 12.5.
- Advanced main air circulating fan: 10% of costs up to $50 energy tax credits for new circulating fans in oil, propane or natural gas furnaces that consume 2 percent or less of the furnace’s total energy consumption.
- Biomass stove: 10% of costs up $300 energy tax credits for biomass stoves with a thermal efficiency rating of at least 75 percent.
For more information about redeeming tax credits for the energy-efficient equipment upgrades you made in 2012 or 2013, please contact Comfort Systems today. We proudly serve residents of Wichita and the surrounding area.
Our goal is to help educate our customers in Wichita, Kansas about energy and home comfort issues (specific to HVAC systems). For more information about energy tax credits and other HVAC topics, download our free Home Comfort Resource guide.