The reinstatement of the 25C homeowner federal tax credits for 2013 have many homeowners and contractors excited. These federal energy credits allow homeowners to claim a tax credit up to a 10 percent (with a $500 cap) of product and installed costs on a variety of qualified energy efficient improvements to a primary resident’s HVAC system, roof, insulation, doors, windows, hot water equipment. This incentive makes the switch from energy-draining to energy-efficient easier than ever, but hurry! These federal tax credits expire January 2014.
HVAC equipment details
Eligible homeowners may qualify for energy tax credits up to 10 percent of the costs for installing a high efficiency hot water heater, heat pump, or central air conditioner. This energy credit has a cap of $300.
However, the same homeowner is also eligible for an additional tax credit of up to 10 percent of the costs (limited at $150) for installing a higher efficiency hot water boiler or qualified furnace. An additional credit of up to $50 is available for installing an advanced main air circulating fan.
What qualifies as a high efficiency unit?
- To qualify, a split system central air conditioner system must meet or exceed a SEER rating of 16 and an EER rating of 13. Package split central air conditioners must meet or exceed a SEER rating of 14 or an EER rating of 12.
- In regards to heat pumps, an air source heat pump must meet or exceed a 8.5 HSPF, 12.5 EER, and a 15 SEER rating. Pacakage heat pump systems must meet or exceed an 8 HSPF, 12 EER, and a 14 SEER rating.
- Natural gas furnaces, natural as hot water boilers, propane furnaces, propane hot water boilers, oil furnaces, and oil hot water boilers must have a least a 95 percent AFUE.
- For an advanced main air circulating fan to apply for the tax credit, it must use no more than 2 percent of the furnace’s total energy.
To learn more about these federal tax credits, or to schedule a personalized consultation, contact your local Texan HVAC experts at James Lane Air Conditioning & Plumbing today.
