Energy Tax Credits on HVAC Upgrades Are Available Through the End of 2013

Energy Tax Credits on HVAC Upgrades Are Available Through the End of 2013If you’re interested in upgrading your heating or cooling systems, you should be aware that federal energy tax credits for HVAC upgrades are available until the end of the year, and are retroactive for all of 2012. According to the Air Conditioning Contractors of America, homeowners seeking qualified improvements to their home’s HVAC system or overall energy efficiency may qualify for a tax credit. This credit can be up to 10 percent of the cost of the improvement or an amount between $50 to $300, with the total available credits for any one homeowner capped at $500.

These credits are intended to help homeowners who wish to install energy-efficient heating and cooling equipment, as well as “green” windows, improved insulation and other upgrades. Energy-efficient systems and upgrades also can increase the overall resale value of a home, as recent statistics have shown. The tax credit will be awarded if minimum efficiency ratings are achieved for each type of equipment or project upgrade in the home.

The applicable federal tax credit will be applied directly to any tax liability that the homeowner has or will be issued directly to the homeowner as a refund. Either way, a tax credit will put money directly into the homeowner’s pocket for renovations that will save them money on energy for many years to come.

Following are some of the more common HVAC upgrades and details about the available energy tax credits, per the official Energy Star website:

  • Central air conditioners may qualify for a tax credit amount of $300 if they have a minimum Seasonal Energy Efficiency Ratio (SEER) of 16 and Energy Efficiency Ratio (EER) of 13 for a split system and 14 and 12, respectively, for a package system.
  • Air source heat pumps offer a tax credit of up to $300 and must have at least a SEER of 15, EER of 12.5 and Heating Seasonal Performance Factor (HSPF) of 8.5 for split systems, and minimums of 14, 12 and 8, respectively, for package systems.
  • A gas-fueled forced-air furnace must have a minimum Annual Fuel Utilization Efficiency of 95 percent to qualify for a $150 tax credit.

For more information about these 2013 energy tax credits and the applicable HVAC upgrades, please contact us at Powers Heating & Air. We provide superior HVAC services to Peachtree City and the surrounding area.

Our goal is to help educate our customers in Peachtree, Georgia and surrounding areas about energy and home comfort issues (specific to HVAC systems). 

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