Energy Tax Credits – Don’t Miss Out!
Most people have heard a lot about this supposed “fiscal cliff” we were all supposed to fall off of at the beginning of the year. Luckily, we did not drop into the abyss and legislation was passed which can actually save the average home owner some serious money on their heating and air conditioning.
So what exactly does that mean for you? These credits were made retroactive to January 1, 2012, and can be used for qualified equipment that was installed in 2012. Additionally, if you have been thinking about upgrading your furnace or air conditioning unit, these energy tax credits can also apply to equipment purchased in 2013.
You can receive up to $500 off in energy tax credits for purchasing qualifying HVAC equipment.
To understand what qualifies, let’s start with a few energy efficiency terms and standards most folks outside the HVAC industry are not familiar with. The Consortium for Energy Efficiency (CEE) is a nonprofit corporation that works with energy offices, utilities, and others to promote the manufacturing of energy efficient products and services. In addition to CEE, here are a few other terms you might hear associated with your HVAC system:
- AFUE – Annual Fuel Utilization Efficiency
- SEER – Seasonal Energy Efficiency Ratio
- EER – Energy Efficiency Ratio
- HSPF – Heating Seasonal Performance Factor
Below are the energy tax credits and how these terms apply:
Furnaces ($150 Energy Tax Credit)
- Natural gas, propane, or oil furnace with an AFUE of not less than 95
Boilers ($150 Energy Tax Credit)
- Natural gas, propane, or oil boiler with an AFUE of not less than 95
Air Conditioners and Heat Pumps ($300 Energy Tax Credit)
- 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)
Advanced Main Air Circulating Fan ($50 Energy Tax Credit)
- 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.
To collect, you’ll need to file IRS form 5695 with your taxes. Do not forget to keep a copy of the Manufacturer’s Certification Statement and any receipts or itemized bills. At Mister Quik, we deal mostly in high efficiency equipment which qualifies for these tax breaks. If you have been thinking about reducing your heating and cooling costs by upgrading to a high efficiency unit, give me a call and my team would be happy to set up an in-home consultation. We also have financing currently available at 0% for 60 months for qualifying individuals.
– Mike M., HVAC Sales Manager