2012/2013 Tax Credits for High-Efficiency Heating and Cooling Equipment

On January 1, 2013 the U.S. Congress passed The American Taxpayer Relief Act of 2012 for federal tax payers who install qualified energy-efficient retrofits in their home. This includes higher efficiency heating and cooling systems, such as central air conditioners, furnaces, heat pumps and packaged systems. These credits are only available for improvements made between January 1, 2012 and December 31, 2013.

An eligible tax payer may claim up to $500 in tax credits, subject to caps based on the type of equipment installed.

• Up to 10% of installed costs ($300 limit) for central split-system air conditioners meeting or exceeding 16 SEER and 13 EER.
• Up to 10% of installed costs ($300 limit) for split-system air-source heat pumps meeting or exceeding 15 SEER, 12.5 EER and 8.5 HSPF.
• Up to 10% of installed costs ($300 limit) for package air conditioners and gas packs meeting or exceeding 14 SEER and 12 EER.
• Up to 10% of installed costs ($300 limit) for packaged heat pumps and dual-fuel packaged systems meeting or exceeding 14 SEER, 12 EER and 8 HSPF.
• Up to 10% of installed costs ($150 limit) for furnaces meeting or exceeding 95% AFUE.
• Up to 10% of installed costs ($50 limit) for advanced main air circulating fan.

For the advanced main air circulating fan credit, the fan must use no more than 2% of the furnace's total energy.

If the fan is qualified, but the furnace is not, you will not be able to take 10% off the cost of the entire furnace. Ask your dealer to break out the cost of the fan in your invoice. You can get a 10% tax credit (up to $50) on the cost of the fan alone. If the furnace is qualified, but the fan is not, you can still take the 10% tax credit on the full cost of the furnace.

If you have taken more than $500 in 25c tax credits since January 1, 2005, you are ineligible for any further credits. Please consult your tax advisor for full details.