Due to the fiscal cliff situation early this year, Congress has reinstated the Federal 25C Tax Credits. In January 2013, President Obama signed legislation, so homeowners and businesses can take advantage of owing Uncle Sam less taxes. Under the American Tax Payer Relief Act, consumers who purchased energy efficient home improvement products or fuel efficient cars are eligible.
Federal 25C Tax Credits Expire Soon
The Federal 25C Tax Credits expire soon, so you’ll have to act quickly. The deadline to file is December 2013. Homeowners may quality for tax credits equal to 10 percent of the installation costs for high efficiency hot water heaters, central air conditioners and heat pumps. There are also tax credits for hot water boilers, furnaces and advanced main air circulating fans. The total cap on qualified equipment is $500, and each type has its own specific cap and energy efficiency ratings. Here’s a list of the specific energy efficiency ratings HVAC equipment must have in order to qualify:
- Boilers and Furnaces: Oil, propane and natural gas hot water boilers must meet or exceed an AFUE of 95 percent. Propane furnaces, natural gas furnaces and oil furnaces must also meet or exceed an AFUE of 95 percent. The maximum credit for boilers is $150, and the maximum credit for furnaces is $300.
- Central Air Conditioners: Split system central air conditioners must have a minimum of 13 EER and 16 SEER. Packaged system central air conditioners must meet or exceed 12 EER and 14 SEER. The maximum tax credit is $300.
- Heat Pumps: Packaged heat pump systems must have a minimum of 12.5 SEER, 8 HSPF and 15 SEER. Air source heat pumps are required to have a minimum of 12.5 EER, 8.5 HSPF and 15 SEER. The cap on this tax credit is $300.
- Main Air Circulating Fan: The advanced main air circulating fan must not use more than two percent of energy. The tax credit is $50.00.
Filing for the Federal 25C Tax Credits is easy. You just need to fill out Form 5695 and submit a copy of the manufacturer’s certification.
Energy Efficient Equipment in High Springs, FL
Businesses and residents can purchase energy efficient HVAC equipment to qualify for tax credits at Bounds Heating & Air. We carry and install a wide selection of HVAC systems that are Energy Star certified, including heat pumps, furnaces, central air conditioners, ductless systems and much more. If you’re seeking to upgrade your existing unit to an energy efficient one, be sure to give us a call.