Energy Tax Credits: Don’t Let the Upgrade Opportunity Pass You By

Energy Tax Credits: Don't Let the Upgrade Opportunity Pass You ByIf you have been putting off a much-needed upgrade to your HVAC system, but are afraid to make the financial leap, here’s some good news for you. The 2013 federal energy tax credits are still available until the end of December. Let these credits ease the financial burden of upgrading to a more energy-efficient system. You can save money at tax time and continue to save on energy bills every time you use your new equipment.These tax credits were originally set to expire at the end of 2011, but were extended by the American Taxpayer Relief Act of 2012 to last until December 2013. The credit covers 10 percent of the cost of the upgrades or a specific amount between $50 and $300, depending on the type of equipment chosen. Only upgrades to existing, primary-residence homes apply; new homes and rental properties are not eligible. The credits are retroactive for all of 2012.

To qualify for the credit, equipment must meet specific energy-efficiency criteria. For example, a split system air source heat pump must be rated with an EER (Energy Efficiency Ratio) of 12.5 or greater and an SEER (Seasonal Energy Efficiency Ratio) of 15 or greater. For fuel-burning systems such as propane- and oil-burning furnaces, a unit must meet an AFUE (Annual Fuel Utilization Efficiency) rating of 95 percent or greater. A/Cs and water heaters also may qualify for these credits, as well as energy-efficient windows, insulation and other improvements.

In order to receive the energy tax credits, you must file the IRS form 5695. Make sure you retain all the receipts pertaining to the purchase and installation of your new equipment; you may need to provide those with the application. Also, you should receive a certificate from the manufacturer stating that the equipment meets the necessary efficiency ratings and qualifies for the credit. Keep this document for your records.

To find out about tax credit-qualified options for your home, please contact us at Overland Park Heating & Cooling. Our company has been serving the greater Kansas City area for 30 years. Our dedicated team can provide solutions to all your heating and cooling needs.

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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