2012/2013 Tax Credits (25 C) for High-Efficiency HVAC and Water Heating Equipment
On January 1, 2013, the U.S. Congress passed the American Taxpayer Relief Act of 2012 for federal taxpayers installing qualified energy-efficient heating, cooling and water heating equipment in their home. Purchasers can take tax credits of up to 10% of the installed cost. The maximum credit is $500 with the actual amount dependent on the limits placed on the type of equipment installed.
The credits are available for systems placed in service from January 1, 2012, through December 31, 2013.
Taxpayers that have taken more than $500 in 25 C tax credits since January 1, 2005, are not eligible for any further credits.
Qualified equipment includes:
- $300 tax credit limit for central split-system air conditioners meeting or exceeding 16 SEER and 13 EER.
- $300 tax credit limit for split-system air-source heat pumps meeting or exceeding 15 SEER, 12.5 EER and 8.5 HSPF.
- $300 tax credit limit for package air conditioners and package gas/electric units meeting or exceeding 14 SEER and 12 EER.
- $300 tax credit limit for packaged heat pumps and packaged dual-fuel systems meeting or exceeding 14 SEER, 12 EER and 8 HSPF.
- $150 tax credit limit for furnaces (natural gas, propane or oil) meeting or exceeding 95% AFUE. $50 tax credit limit for advanced main air circulating fan using no more than 2% of the furnace’s total energy.
- $150 tax credit limit for boilers (natural gas, propane and oil) meeting or exceeding 95% AFUE.
- $300 tax credit limit for electric heat pump water heaters with an energy factor of at least 2.0.
- $300 tax credit limit for natural gas, propane and oil water heaters with an energy factor of at least 0.82 or a thermal efficiency of at least 90%.