Fiscal Cliff Legislation Extends HVAC and Water Heater Tax Credits

Posted On: January 08, 2013

Here at Top Notch Heating, Cooling & Plumbing, our phone lines have been very busy since Congress approved legislation designed to avoid the “fiscal cliff.” The measure was signed into law by President Obama on Jan. 2, 2013. You may be wondering why we’ve been so busy since the enactment of this law. The fiscal cliff avoidance legislation retroactively reinstated 25C tax credits for highly efficient HVAC and water heating equipment. Our Kansas City area customers are curious to determine if they now qualify for federal tax credits for equipment they purchased and installed in 2012.

Give us a call today at (913) 535-8002(913) 535-8002 to see if your equipment qualifies for a federal tax credit.

President Obama signed into law the provision that will extend the tax credits from Jan. 1, 2012 all the way through Dec. 31, 2013, for qualified equipment listed in Section 25C of the Internal Revenue Code. Allow us to sort it all out for you.

Qualified HVAC Tax Credits

Here is the tax credit information for qualified HVAC equipment. These tax credits expired Dec. 31, 2013. 

Furnaces ($150 tax credit): natural gas, propane, or oil furnaces with an annual fuel utilization efficiency (AFUE) of not less than 95 qualify for this tax credit.

Boilers ($150 tax credit): natural gas, propane, or oil boilers with an AFUE of not less than 95 qualify for this tax credit.

Air Conditioners and Heat Pumps ($300 tax credit):

Split system central air conditioners that achieve the highest efficiency CEE tier as of Jan. 1, 2009 (16 SEER; 13 EER).

Packaged central air conditioner that achieves the highest efficiency CEE tier as of Jan. 1, 2009 (14 SEER; 12 EER).

Split system electric heat pump that achieves the highest efficiency CEE tier as of Jan. 1, 2009 (8.0 HSPF; 12.5 EER; 15 SEER).

Packaged electric heat pump that achieves the highest efficiency CEE tier as of Jan. 1, 2009 (8.0 HSPF; 12.0 EER; 14 SEER).

Qualified Water Heater Tax Credits

The fiscal cliff legislation also extends a tax credit of $300 for qualified water heaters. Electric heat pump water heaters with an energy factor of at least 2.0 qualify. Natural gas, propane, or oil water heaters with an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent qualify as well.

Again, if you are unsure whether the HVAC equipment and/or water heater you purchased and installed in 2012 qualifies for a federal tax credit, just give us a call.

Also, this is a good time to install a new high efficiency furnace, heat pump, or water heater. It’s getting cold here in Kansas City—why not take advantage of the extension of federal tax credits on HVAC and water heating equipment now?

Contact us to learn more about the high efficiency HVAC and water heating equipment we can install for you as well as the tax credits you’ll receive.

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