If your home has older HVAC equipment that does not meet current energy-efficiency standards, at some point you’re going to need to upgrade to higher-efficiency equipment. Legislation President Obama signed on Jan. 2, 2013 to avoid the “fiscal cliff” includes reinstatement of federal energy tax credits for residential energy-efficiency improvements that lapsed at the end of 2011. This makes many HVAC upgrades – from furnaces to water heaters to windows and insulation – even more attractive in 2013.The cost of heating and cooling your home in the Kansas City area is probably the largest expense you have related to home ownership. Investing in energy-efficiency improvements around your house can decrease your monthly expenses significantly and give you an excellent return on your investment. Tax credits are icing on the cake.
Here is a brief summary of the provisions for residential energy tax credits in the new legislation:
- Tax credits that expired at the end of 2011 have been extended until the end of 2013 and apply retroactively to qualifying investments you made in 2012.
- A $500 lifetime maximum applies to homeowners claiming residential energy tax credits, but you can combined individual credits. The total just can’t exceed $500.
- A tax credit of 10 percent (up to a $500 maximum) is available for upgrading insulation and installing high-efficiency windows, doors and roofing.
- A tax credit of 10 percent (up to $300) may apply to energy-efficient heat pumps, central air conditioning systems and water heaters.
- A tax credit of 10 percent (up to $150) for a new furnace or heating system boiler.
- A tax credit of 10 percent (up to $50) for a system with a high-efficiency circulating fan.
The energy tax credits that are available to you may vary depending upon your personal tax situation, the equipment you want to install, and other factors, so be sure to discuss them with your tax adviser and HVAC contractor before you make final decisions based on the credits.
Contact Overland Park Heating & Cooling, Inc. for advice on the most cost-effective ways to reduce your home’s heating and cooling costs, including the tax credits you may qualify for. We have served homeowners and businesses throughout the Kansas City area since 1983, so we know how to keep your family comfortable and your utility bills low in our Midwest climate.
Our goal is to help educate our customers in Overland Park, Kansas about energy and home comfort issues (specific to HVAC systems).
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