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Jan
08

2013 Federal Tax Credits

Federal Tax Credits for Energy Efficient Equipment 2013

The American Taxpayer Relief Act are tax credit extensions for energy-efficient equipment.

The fiscal package passed on January 2nd, 2013 includes incentives for homeowners to be more energy-efficient. Buried in the 150-page document that is the American Taxpayer Relief Act are tax credit extensions for energy-efficient appliances, building materials, and more.

In short, you can save up to $500 on taxes if you made energy-efficient upgrades to your home in 2012, or plan to do so in 2013. These might include swapping out your old furnace with a new high-efficiency model, laying insulation in the attic, or putting in new windows. To collect, you’ll need to file IRS form 5695 with your 2012 or 2013 taxes. Be sure to keep a copy of the Manufacturer’s Certification Statement and any receipts or itemized bills.

Keep in mind that the $500 tax credit cap applies back to the beginning of the program meaning that taxpayers who claimed the credit in previous years will not be eligible for more money this time.

If you installed an energy efficient furnace, boiler, air conditioner or water heater in 2012 or do you plan to upgrade or replace your system in 2013, you might be eligible to receive a tax credit on your taxes.

The bill passed retroactively reinstates the 25C tax credits for highly efficient HVAC and water heating equipment that expired in 2011. Tax credits that expired in 2011 from January 1, 2012 until December 31, 2013 for qualified equipment are listed below:

Water Heaters ($300 Tax Credit)
Electric heat pump water heaters with an energy factor of at least 2.0 Natural gas, propane, or oil water heater with an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent

Furnaces ($150 Tax Credit)
Natural gas, propane, or oil furnace with an AFUE of not less than 95

Boilers ($150 Tax Credit)
Natural gas, propane, or oil boiler with an AFUE of not less than 95

Air Conditioners and Heat Pumps ($300 Tax Credit)

  • Split system central air conditioner that achieves the highest efficiency CEE tier as of January 1, 2009 (16 SEER; 13 EER)
  • Packaged central air conditioner that achieves the highest efficiency CEE tier as of January 1, 2009 (14 SEER; 12 EER)
  • Split system electric heat pump that achieves the highest efficiency CEE tier as of January 1, 2009 (8.5 HSPF; 12.5 EER; 15 SEER)
  • Packaged electric heat pump that achieves the highest efficiency CEE tier as of January 1, 2009 (8.0 HSPF; 12.0 EER; 14 SEER)

Advanced Main Air Circulating Fan ($50 Tax Credit)
A fan used in a natural gas, propane, or oil furnace with an annual electricity use of no more than 2 percent of the total energy use of the furnace.

Be sure to consult with the experts in the matter. Call Standard Heating & Air Conditioning and make sure to get the professional opinion of a family-owned company that look after the customer and cares about the community. From our family to yours.. since 1930.

For more information visit the IRS and ENERGY STAR. For an article visit Consumer Reports