Last January, the U.S. Congress reinstated federal energy tax credits to help stimulate the sluggish economy. Consumers who purchase high-efficiency HVAC equipment and energy-saving products between Jan. 1, 2012 and Dec. 31, 2013 are eligible for energy tax credits for up to 10 percent of the cost of the system or product, with certain caps for each product. The energy tax credits range from $50 to $300, and the total of multiple credits can’t exceed $500.
What Types of Equipment Qualifies for the Energy Tax Credits?
Boilers and furnaces: The maximum energy tax credit on qualifying boilers and furnaces is $150. An Annual F
uel Utilization Efficiency (AFUE) rating of 95 percent or higher is required for all natural gas, oil and propane boilers and furnaces.
Central air conditioners: The energy tax credit on qualifying air conditioners is $300. Split-system air conditioners must have a minimum Seasonal Energy Efficiency Ratio (SEER) of 16, while packaged systems must have a minimum SEER of 14.
Main circulating fans for heating and cooling systems: These are eligible for a tax credit of $50 if they contribute no more than 2 percent of the system’s energy consumption.
Heat pumps: Packaged air-source heat pumps with a minimum SEER of 14, and split-system electric heat pumps with a minimum SEER of 15 are eligible for a tax credit of up to $300.
Water heaters: An energy factor of at least 0.82 or a thermal efficiency of at least 90 percent are required for both gas and propane water heaters. The energy tax credit for water heaters is $300.
If you’re considering replacing your heating or cooling system, be sure to do it before Dec. 31, 2013, so you can take advantage of these federal energy tax credits. Also, check out our maintenance program to ensure you’re getting the most out of your new heating or air conditioning system.
Marsh Heating & Air Conditioning Co. has been serving the Twin Cities Metro Area since 1974. If you need expert advice or an estimate on a new heating or cooling system for your home, please contact us today.
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Our goal is to help educate our customers in Minneapolis-St. Paul, Minnesota about energy and home comfort issues (specific to HVAC systems). For more information about tax credits and other HVAC topics, download our free Home Comfort Resource guide.
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