Home‎ > ‎

Tax Breaks 2013

Consumer Tax Incentives 2013
Home Heating & Cooling Equipment
What are the incentives for home heating & cooling equipment?
Purchasers of highly efficient heating, cooling, and water heating equipment can take tax credits of up to 10% of the cost of qualifying equipment. These credits are available for systems placed in service from January 1, 2012 through December 31, 2013.The credit is limited to $50 - $500 dependent on the product type.  See equipment descriptions below for more details.
I don't think I qualify for this incentive  - where can I find information on state-level incentives?
What types of equipment qualify?
What are the efficiency requirements to qualify for the credits?
Manufacturers and retailers should be able to help you tell whether a specific product qualifies.
The qualification specifications are:

    • Furnaces and Boilers: From January 1, 2012 through December 31, 2013: Natural gas & propane furnaces must meet an Annual Fuel Use Efficiency (AFUE) 95 or higher, oil furnaces and gas, oil and propane boilers must meet an AFUE of 95 or better. In addition, the credit covers costs up to $150

    • Central Air Conditioning Units: Until December 31, 2013: Central air conditioning units and air-source heat pumps must meet the highest tier standards set by the Consortium for Energy Efficiency (CEE), which in most cases requires a Seasonal Energy Efficiency Ratio (SEER) of 16. SEER measures performance throughout the cooling season. More information on the CEE specification. The credit covers costs up to $300.

    • Fans for heating and cooling systems: From January 1, 2012 through December 31, 2013: $50 for any advanced main air circulating fan.

    • Water Heaters: From January 1, 2012 through December 31, 2013: the credit covers costs up to $300. The specifications are as follows:

    • Gas or propane water heaters—Energy Factor of at least 0.82, or a thermal efficiency of at least 90% required.
    • Heat pump water heaters—Energy Factor of at least 2.0 required.
Where must the equipment be used?
Under guidance issued by the IRS, equipment is eligible if installed in a home occupied by a taxpayer as their principal residence at the time the equipment is installed. This implies that equipment in new homes is generally not eligible since in new homes equipment is generally installed prior to occupancy. However, efficient equipment in new homes can help that home qualify for the new home tax credit.
What do I need to do to qualify for the incentives?
Under the IRS rules, manufacturers need to certify that specific measures are eligible. Homeowners should obtain a copy of this certification when buying these products from the manufacturer, contractor or retailer. Certifications need not be submitted to the IRS, but should be kept on file in case the IRS has questions. Homeowners should also make notes on when each eligible measure is installed- only measures "placed in service" in 2009 or 2010 are eligible.
Click
here to access IRS guidance on qualifying energy-efficient property.
I don't think I qualify for the incentive - where can I find information on state-level incentives?
To apply for the incentive, use IRS form
5695. Please note that this version of the form is for 2008, and so does not include line items for the incentives discussed on this page. There will be a section for these incentives on the 2009 iteration of the form which will likely be available in late 2009 or early 2010.
Where can I find out more about qualifying products?

Comments