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Use Energy Tax Credits for an HVAC Upgrade This Fall Before They Disappear

  • September 27, 2013

By now hopefully everyone knows about the energy tax credits for new HVAC systems. Congress reinstated the 2011 25C energy tax credits from January, 1, 2012 to December 31, 2013. This is great news for North Carolina homeowners because the tax credits covers HVAC upgrades to higher efficiency systems.

What Are the Federal Energy Tax Credits?

Federal energy tax credits provide homeowners credits of up to a total of $500 for energy-saving improvements made to their homes in 2012 or 2013. Now is a good time to upgrade your furnace to ensure you get in on the savings at tax time and save on your heating bill during the fall and winter.

Which HVAC Products Are Covered by the Federal Energy Tax Credits?

If your air conditioning unit needs an upgrade, now is a good time to switch to a higher efficiency system for next year. As a result, you’ll save at tax time and save on your cooling bill next spring and summer. HVAC upgrades covered by the tax credits include:

  • Air-source heat pumps – Qualifying heat pumps are eligible for a credit of $300. This includes split systems with a minimum Heating Season Performance Factor (HSPF) of 8.5, Energy Efficiency Ratio (EER) of 12.5 and a Seasonal Energy Efficiency Ratio (SEER) of 15, as well as package systems with a minimum 8 HSPF, 12 EER and 14 SEER.
  • Natural gas, propane or oil furnaces  – Furnaces covered by the tax credits must have a minimum Annual Fuel Utilization Efficiency of 95 percent. Qualifying systems are eligible for a credit of $150.
  • Central air conditioning units – Qualifying A/Cs are eligible for a tax credit of $300. Units covered include split systems with a minimum 16 SEER and 13 EER, and package units with a 14 SEER and 12 EER.
  • Gas, propane, or oil boiler – To qualify for a $150 tax credit, boilers must have a minimum 95 percent AFUE.

Also covered by the tax credits include advanced main air circulating fans, geothermal heat pumps, and non-solar water heaters.

To learn how to apply energy tax credits to your HVAC upgrade this fall, contact Comfort Services, Inc. today.