About Federal HVAC Tax Credits For 2013

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The renewed "25C" tax credit for 2013 allows homeowners to get up to $500 in tax credits when installing qualified home improvements. Depending on their eligibility, homeowners may qualify for tax credits equal to 10% of the costs (up to $300) for qualifying new high efficiency central air conditioners, heat pumps or hot water heaters.

Homeowners may qualify for additional tax credits equal to 10% of the costs (up to $150 limit) for installing qualified furnaces or boilers. A smaller tax credit of 10% of the installed costs (up to $50 limit) is available for installing a system with an advanced main air circulating fan.
  • A central air conditioner must meet or exceed 16 SEER and 13 EER; package system central air conditioners must meet or exceed 14 SEER and 12 EER.
  • A heat pump must meet or exceed 15 SEER and 12.5 EER and 8.5 HSPF. Package heat pump systems must meet or exceed 14 SEER and 12 SEER and 8 HSPF.
  • Natural gas furnaces, propane furnaces, natural gas hot water boilers, propane boilers, oil furnaces, and oil hot water boilers must meet or exceed 95% AFUE.
  • For the advanced main air circulating fan credit, the fan must use no more than 2% of the furnace’s total energy. If the fan is qualified, but the furnace is not.
  • There is a lifetime residential energy tax credit limit of $500, retroactive to January 1, 2005.
The IRS is expected to release more information soon about how to file a claim. For more information on this or any HVAC tax credits or rebates, contact Service Experts Heating & Air Conditioning for a free consultation.
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