Rebates and Tax Credits

Federal Tax Credits for Energy Efficiency

The federal government is offering tax credits for consumers on existing homes including water heaters and air conditioners.

Federal Tax Credits Renewed for 2013

On Jan. 1, 2013, the American Taxpayer Relief Act of 2012 was extended, which continues tax credits for energy efficiency upgrades to existing homes, including purchases of heating, cooling and water heating equipment made in 2012 and 2013.

Geothermal system tax credits and solar water heaters are unaffected by these changes and remain in place through 12/31/2016.

Note: State, Local and Utility rebates may still be available in your respective markets for residential energy products installed in 2012.

Here’s what you need to know about these tax credits:

What equipment qualifies for the credit?
High-efficiency water heaters, furnaces, boilers, heat pumps, central air conditioners, building insulation, windows, roofs, biomass stoves, and circulating fans used in qualifying gas furnaces. Please see the chart below, which details the qualifying equipment.

When does the tax credit expire?
This tax credit originally expired at the end of 2011, however the American Taxpayer Relief Act of 2012 retroactively renewed the tax credit effective Jan. 1, 2012. It runs through Dec. 31, 2013, so qualifying equipment must be purchased by the end of this year.

What’s the maximum amount that a homeowner can receive in tax credits?
The maximum amount an eligible homeowner may receive in tax credits is $500. If you have already claimed credits of $500 or more from improvements made in 2011, you are eligible to claim new credits for any new improvements made during 2012 or 2013.

Can these tax credits be applied to energy-efficient equipment purchased for a second home?
In order for purchases of high-efficiency heating, cooling and water heating equipment to be eligible for this tax credit, the equipment must be installed in a primary residence that is owned and used by the taxpayer.

What do I need to do to take advantage of this tax credit?
Your local contractor who installs the equipment can help make sure that you have the right documentation needed to claim the tax credit. You can also download the proper IRS form here.

Where can I find out more information about these tax credits?
DSIRE, the Database of State Incentives for Renewables & Efficiency, has more information here.

MAXIMUM AVAILABLE TAX CREDIT PRODUCT TYPE EFFICIENCY REQUIREMENTS
$300 Tankless Gas Water Heater EF >= 0.82 or TE >=90
$300 Heat Pump Water Heater EF >= 2.0
$150 High-Efficiency Gas Furnace AFUE >= 95
$150 High-Efficiency Gas Boiler AFUE >= 95
$300 High-Efficiency Central A/C System Must meet highest tier of efficiency established by the Consortium for Energy Efficiency
$300 Electric Heat Pump Must meet highest tier of efficiency established by the Consortium for Energy Efficiency

 

NOTE: Geothermal system tax credits and solar water heaters are unaffected by these changes and remain in place through 12/31/2016.

IMPORTANT: This information is provided to assist in identifying applicable tax credits and should not be considered tax advice. Consult your tax professional to review your particular circumstances.

Federal Tax Credits Currently Not Renewed for 2012

On Jan. 1, 2013, the American Taxpayer Relief Act of 2012 was extended, which continues tax credits for energy efficiency upgrades to existing homes, including purchases of heating, cooling and water heating equipment made in 2012 and 2013.

Geothermal system tax credits and solar water heaters are unaffected by these changes and remain in place through 12/31/2016

Federal tax credit information for products purchased in 2011

Federal tax credits on qualifying, high-efficiency HVAC & Water Heating equipment have been modified and extended through December 31, 2011 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This program differs from the program effective in 2009-2010 in the following ways:

  • The maximum amount an eligible homeowner may receive in tax credits for purchasing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, will be reduced from $1,500 to $500 (with a maximum per-category amount as listed in the table below).
  • The $500 cap is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2010. If you have already claimed credits of $500 or more from improvements made prior to 2011, you will be unable to claim new credits for improvements made during 2011.
  • All furnaces and boilers, whether natural gas, propane or oil, must have an AFUE of 95 or above to be eligible for the credit.
  • The credit is no longer 30% of qualified residential energy property costs (including labor), but is now equal to an amount not to exceed:

MAXIMUM AVAILABLE TAX CREDIT PRODUCT TYPE EFFICIENCY REQUIREMENTS
$50 Any advanced main air circulating fan Electricity use of no more than 2% of the total energy use of the furnace
$150 Natural Gas, Propane, Oil Furnace or Boiler 95% AFUE
$300 Split System Air Conditioners 16 SEER / 13 EER
$300 Split-System Heat Pumps 15 SEER / 12.5 EER / 8.5 HSPF
$300 Package Air Conditioners 14 SEER / 12 EER
$300 Package Heat Pump 14 SEER / 12 EER / 8 HSPF
$300 Package Gas / Electric 14 SEER / 12 EER
$300 Gas Water Heater EF >= 0.82 or TE >= 0.90
$300 Heat Pump Water Heater EF >= 2.0

 

NOTE: Geothermal system tax credits and solar water heaters are unaffected by these changes and remain in place through 12/31/2016.

IMPORTANT: This information is provided to assist in identifying applicable tax credits and should not be considered tax advice. Consult your tax professional to review your particular circumstances.

Local and State links for rebate and tax credit information:

Rebates for High Efficiency Toilets
Looking for information about High Efficiency Toilet rebates and other water districts rebates?

Bosch Geothermal Heat Pumps Tax Credit & Rebates
Geothermal Heat Pumps Tax Rebates
Bosch Greenstar Condensing Boiler Tax Credits
Gas-Fired Condensing Boilers Tax Rebates

Federal & State Tax Rebates & Incentives for Bosch Tankless Water Heaters
Tankless Water Heaters Tax Rebates
Bosch Compress Heat Pump Water Heater
Compress Heat Pumps Tax Rebates

 

Call your Sacramento area full-service plumbers Crystal Blue Plumbing, Heating & Air today at (916) 577-5020 today!