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Congress Extends Energy Tax Credits on Air Conditioning & Heating

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Finally there’s some good news from Washington DC. Relief has been provided to homeowners that have made energy efficiency improvements in 2013 or plan to invest in such improvements this year.

While representatives haggled over the notorious “Fiscal Cliff” earlier this year, Congress voted to extend the popular Federal tax credits for Consumer Energy Efficiency. This serves as an incentive to upgrade systems in existing homes by installing energy- efficient air conditioning systems, heat pumps and hot water heaters. Other improvements such as roofing, windows and insulation may also qualify.

The tax credit amount varies depending on the type of energy-efficient heating and air conditioning component(s) installed. To be eligible, the products must be installed in a home that you own and serves as your primary residence.

Central Air Conditioning products must meet certain minimum Seasonal Energy Efficiency Rating (SEER) or Energy Efficiency Ratio (EER) to qualify. Heat Pumps are given a Heat Seasonal Performance Factor (HSPF). The higher the SEER, EER or HSPF, the more efficient the system is.

Which heating and air conditioning improvements are eligible for the Federal tax credit?

Central Air Conditioning Systems (CACs)

  • Split Systems (outdoor compressor, indoor evaporator coil and air handler) 16 SEER, 13 EER or above
  • Package Systems (all-in-one outdoor pack) rated 14 SEER, 12 EER or above
  • Tax Credit amount: 10% of cost, maximum credit: $300.00

Geothermal Heat Pumps

Air Source Heat Pumps

  • Split Systems with a minimum 8.5 HSPF, 12.5 EER, or 15 SEER
  • Package Systems with a minimum 8 HSPF, 12 EER, or 14 SEER
  • Tax Credit amount: 10% of cost, maximum credit: $300.00

Natural Gas, Propane or Oil Furnaces and Boilers

  • Must be rated AFUE (Annual Fuel Utilization Efficiency) 95% or above
  • Tax Credit amount: 10% of cost, maximum credit: $150.00

Most of the tax credits allow inclusion of the cost of installation in the eligible amount, but there is a lifetime maximum credit allowance of $500.00. If you have or plan to install energy-efficient products, call Total Comfort Mechanical Heating and Air Conditioning in Burlington, MA – to consult with professional HVAC experts and find out if any other rebates are available. Be sure to also consult a tax advisor for specific details when filing your tax r

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This entry was tagged Energy Rebates, AC, Ductless, Pumps, Air Conditioning, Heat Pumps, MiniSplit, Heat, Energy Tax Credit and posted on June 06, 2013

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