The renewed “25C” tax credit for 2013 allows qualifying homeowners to receive up to $500 in federal tax credits when completing certain home improvements. Because the credits were made retroactive to January 1, 2012, they can be used for qualifying heating, cooling, water heating or even some insulation and window upgrade projects and help reduce the federal taxes owed for 2012! These credits are also extended for 2013 and can be used when completing your tax forms next April 2014.
Qualified HVAC equipment includes:
Water Heaters (up to a $300 Tax Credit) – Electric Heat Pump Water Heaters with an energy factor of at least 2.0; Natural gas, propane or oil-fired water heaters with an energy factor of at least 0.82 or a thermal efficiency of at least 90 per cent
Furnaces (up to a $150 Tax Credit) – Natural gas and propane furnaces with an AFUE (Annual Fuel Utilization Efficiency) rating of 95 or higher
Boilers (up to a $150 Tax Credit) – Natural gas and propane hot water boilers with an AFUE rating of 95 or higher
Air Conditioners and Heat Pumps (up to a $300 Tax Credit) – Split system air conditioning systems must carry a 16 SEER or a 13 EER rating. Packaged air conditioning systems must have a 14 SEER or a 12 EER rating. Split system heat pumps should have a 15 SEER or a 8.5 HSPF or a 12.5 EER rating while packaged heat pump systems must have a 8.0 HSPF or a 14 SEER or a 12 EER rating
When combining these credits, whether from a new heater along with added attic insulation or other choices, you may NOT EXCEED a total of $500 federal tax credit.
Be sure to save all your billing information and talk to your local home comfort experts at UGI Heating, Cooling & Plumbing to see how these rules might apply to you. We’re here to help you save on your energy usage as well as your taxes!