An investment in HVAC upgrades is a great idea that delivers increased energy efficiency and enhances interior comfort in your home. But it’s even a better idea when you get a substantial tax break along with it. Fortunately, our legislators in Washington have seen the wisdom of both. The 25C federal tax credits for heating and cooling equipment, which had been allowed to lapse in 2011, is back by popular demand along with a little help from Congress. Not merely an exemption, a tax credit reduces the amount due on your federal tax return and puts that money back in your pocket. In addition to a little more spendable income this year, you’ll enjoy the energy efficiency and performance benefits of a high-efficiency HVAC upgrade for many seasons to come.
But don’t put off taking advantage of this savings opportunity too long. The 25C program has a definite deadline for eligibility and time is running out. While it’s retroactive to include equipment purchased and installed during 2012, the program is set to expire on December 31, 2013.
The credit applies to 10 percent of the cost of buying and installing components of a high-efficiency HVAC system up to a $500 maximum. Broken down by category, it provides $300 for an A/C or heat pump, $150 for an accompanying furnace and $50 for an energy-efficient blower with ECM technology. Here’s what qualifies in each category:
- A split-system A/C with a minimum SEER (Seasonal Energy Efficiency Ratio) of 15 and an EER (Energy Efficiency Ratio) of 13 or better.
- A split-system heat pump with a minimum 15 SEER, an EER of at least 12.5 and an HSPF (Heating Seasonal Performance Factor) of 8.5 or greater.
- A gas-fired furnace with a 95 percent or greater AFUE (Annualized Fuel Utilization Efficiency) rating.
- A blower fan that incorporates advanced Electronically Commutated Motor (ECM) technology which accounts for two percent or less of the system’s total energy consumption.
- Geothermal systems that have earned Department of Energy’s Energy Star rating can receive a 30 percent one-time tax credit on the total purchase price and installation expense of the system. The geothermal credit is retroactive to December 31, 2007.
Since 1955, AirRite Air Conditioning is your comfort and efficiency leader in the Dallas/Ft. Worth area. Contact us about an HVAC upgrade and take advantage of the extended federal tax credit before time runs out.
Our goal is to help educate our customers in the Fort Worth and Arlington, Texas area about energy and home comfort issues (specific to HVAC systems).
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