The 25C Tax Credit made its way into the “Fiscal Cliff” deal, which Congress passed this week and was signed into law by President Obama. The credit is essentially the same as the 2011 credit… it was simply renewed retro-actively for 2012 and through the end of 2013. Homeowners who have not used the credit in the past are eligible for a tax credit up to 10% of the cost of installing high efficiency HVAC equipment. The maximum credit is $150 for a furnace or boiler, $300 for an A/C, heat pump, or water heater, and $50 for the fan system for a total maximum of $500.
Qualifying Efficiency Levels for the credit are as follows:
- Central A/C (Split-System): 16 SEER & 13 EER or higher
- Central A/C (Package System): 14 SEER & 12 EER or higher
- Heat Pump (Split-System): 15 SEER/ 12.5 EER/ 8.5 HSPF or higher
- Heat Pump (Package System): 14 SEER/ 12 EER/ 8.0 HSPF or higher
- Boilers (Natural Gas/ Oil/ Propane): 95% AFUE
- Furnaces (Natural Gas/ Oil/ Propane): 95% AFUE This applies to you Tom!
- Advanced Main Circulating Fan: If the fan uses less than 2% of the furnaces total energy
As you know – the 25c tax credit was retroactively enacted for 2012 and extended through 2013. However, the IRS was caught slightly off guard by this change. According to a press release, the IRS Form 5695, which is required to be completed in order to claim the 25c credit, will likely not be available until late February or early March. Meaning, any homeowners who will be claiming this credit for their 2012 taxes will need to wait until the form is available.
Click Here to read the IRS Press Release.
For more information about the qualifying product and credit amounts – Click Here