On January 2, President Obama signed legislation designed to avoid the “fiscal cliff” and keep tax rates from increasing for every American who pays taxes. In addition to its many other tax provisions, the bill retroactively reinstates the 25C tax credits for highly efficient HVAC and water heating equipment that expired at the end of 2011.
Specifically, the bill extends the tax credits that expired in 2011 from January 1, 2012, until December 31, 2013, for qualified equipment listed in Section 25C of the Internal Revenue Code. Because the credits were made retroactive to January 1, 2012, they can be used for qualified equipment that was installed any time after December 31, 2011. Qualified equipment includes:
Water Heaters ($300 Tax Credit)
- Electric heat pump water heaters with an energy factor
of at least 2.0
- Natural gas, propane, or oil water heater with an
energy factor of at least 0.82 or a thermal efficiency of at least 90
percent
- Natural gas, propane, or oil furnace with an AFUE of
not less than 95
- Natural gas, propane, or oil boiler with an AFUE of not
less than 95
- Split system central air conditioner that achieves the
highest efficiency CEE tier as of January 1, 2009 (16 SEER; 13 EER)
- Packaged central air conditioner that achieves the
highest efficiency CEE tier as of January 1, 2009 (14 SEER; 12 EER)
- Split system electric heat pump that achieves the
highest efficiency CEE tier as of January 1, 2009 (8.5 HSPF; 12.5 EER; 15
SEER)
- Packaged electric heat pump that achieves the highest
efficiency CEE tier as of January 1, 2009 (8.0 HSPF; 12.0 EER; 14 SEER)
A fan used in a natural gas, propane, or oil furnace with an annual electricity use of no more than 2 percent of the total energy use of the furnace
Brian Starzec | HVAC Business Solutions, LLC | January 15, 2012
Government has finally understood how essential is heating and cooling during bad whether situations because of that only they have given tax credits for HVAC systems.
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