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Residential Energy Efficiency Tax Credits- Extended to December 2013!
Posted in HVAC
Published January 11, 2013
Residential Energy Efficiency Tax Credits- Extended to December 2013!
First things first. What is a tax credit? A tax credit is a dollar for dollar value that reduces one’s actual tax liability- it is not the same as a tax deduction. Basically, it allows a person that owes taxes to allocate the money that they would otherwise pay, to a different entity for a specific reason.
The American Taxpayer Relief Act of 2012 was signed into law January 2nd, 2013, which encompasses any qualified energy efficiency upgrades installed in 2012 or 2013. The maximum amount that a taxpayer can claim is $500.
What Qualifies and How Much Do I Qualify For?
Upgrade Type |
Stipulation |
Credit Amount |
New HVAC Equipment |
16 SEER or greater |
$300 |
Insulation |
10% of material cost |
$500 |
Air Sealing |
10% of material cost |
$500 |
Electric heat pump water heater |
Energy Factor of 2.0 or greater |
$300 |
Natural gas high hot water heater |
Energy Factor of .82 or greater |
$300 |
Windows |
SHGC of .30 |
$200 |
With this in mind, energy efficiency is easier than ever before!