Federal tax credits for the purchase and installation of qualified HVAC systems and products that were in place in 2011, but that expired at the end of that year, are back! These renewed tax credits, officially called “25c tax credits” provide homeowners with the opportunity to claim up to $500 in tax credits when installing high efficiency HVAC systems, including central air conditioners, heat pumps, hot water heaters, furnaces, boilers and main air circulating fans.
Air conditioners and heat pumps:
Homeowners may receive a tax credit of up to 10% of the cost of installing a qualifying central air conditioning system, with a maximum tax rebate availability of $300. For the central air conditioner to qualify for the federal tax rebate, it must be considered a high efficiency model, with efficiency values determined by the system’s SEER and EER levels. Split system central air conditioners must be a minimum of 16 SEER and 13 EER. If the central air conditioner is a packaged system, those minimum requirements drop to 14 SEER and 12 EER.
The 10% tax credit (with a maximum of $300) is also available for homeowners that install a heat pump in their home. High efficiency heat pumps must meet not only SEER and EER minimum levels, but minimum HSPF ratings as well, in order to qualify. Minimum requirements are 15 SEER, 12.5 EER and 8.5 HSPF for split system electric heat pumps. For packaged heat pumps, those minimum ratings drop to 14 SEER, 12 EER and 8 HSPF.
The 10% tax credit is available on water heaters, with a maximum cap of $300 in credits. To be eligible, electric heat pump water heaters must have an energy factor of at least 2.0, while natural gas, propane and oil water heaters must have an energy factor of at least .82 or a thermal efficiency of at least 90%.
Furnaces and boilers:
In addition to the federal tax credit being offered on qualified high efficiency central air conditioning systems, heat pumps and hot water heaters, the government is also offering additional tax credits for the installation of a qualified high efficiency furnace or boiler. This tax credit is also equal to 10% of the installation price, with a maximum limit of $150. Products eligible for this tax credit include natural gas furnaces and hot water boilers, propane furnaces and boilers, and oil furnaces and hot water boilers. Efficiency ratings for these products are measured in AFUE ratings, and in order to qualify for the tax credit, the AFUE rating must exceed 95%.
Advanced main air circulating fans:
Smaller tax credits are also available for installing systems with an advanced main air circulating fan. This tax credit is also equal to 10% of the installed price, with a maximum limit of $50. To qualify for this tax credit, the main air circulating fan must use a maximum of 2% of the furnace’s total energy and can be used with natural gas, propane or oil furnaces.
Although the federal HVAC tax credits were renewed in 2013, they are retroactive for purchases and installations completed in 2012. There is a lifetime residential energy tax credit limit of $500, however, which is retroactive back to January 1, 2005.
For more information about the renewed federal HVAC tax credits for 2013, or to find out more about the purchase and installation of qualified central air conditioners, heat pumps, hot water heaters, furnaces, boilers and main air circulating fans in Jacksonville, contact AllWeather Contractors at 904-781-7060.