The recent “fiscal cliff” budget agreement in Washington had one big positive side effect for American homeowners – reinstatement of the 25C federal energy tax credits that expired at the end of 2011. The credits act as an incentive for homeowners to purchase energy-efficient heating and cooling appliances, as well as energy-saving insulation, windows, etc.
Homeowners will be eligible to claim up to $500 in tax credits for making qualified energy-efficient improvements and upgrades to their homes during the 2013 tax year. The extension of these tax credits was also made retroactive to include qualified equipment installed during the 2012 tax year. $500 is the maximum credit that a taxpayer can receive for whatever combination of qualified energy-saving purchases or upgrades he or she makes. Amounts of specific energy tax credits include:
- Maximum tax credit for a qualified water heater with an energy factor of 2.0 or more: $300
- Maximum tax credit for a qualified furnace or boiler with an Annual Fuel Utilization Efficiency (AFUE) of at least 95 percent: $150
- Maximum tax credit for qualified air conditioners and heat pumps that meet the highest efficiency Consortium for Energy Efficiency standards: $300
- Maximum tax credit for a qualified air circulating fan: $50
Many other improvements are also eligible for the credits, including energy-saving windows and insulation. If you foresee a need to upgrade your home’s energy efficiency in the near future, the extension of these federal energy tax credits makes 2013 the year to make qualified improvements to your home.
At Donald P. Dick Air Conditioning, we are experienced professionals who specialize in making your home more efficient and strive to stay ahead of the curve when it comes to the latest energy-efficiency requirements. Please contact us today to learn more about how we are helping residents of the greater Fresno area take advantage of the 25C energy tax credits.
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