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Use 25C Tax Credits for Your HVAC Upgrade

If you have been planning to take advantage of the Federal 25C tax credits, there is not much time left. These tax credits, which were initially in effect between 2006 and 2011, were extended by President Obama in early 2013. You are eligible to claim a credit under the extension if you purchased qualifying equipment any time in 2012 or 2013. However, the tax credits will expire again on the last day of this year. You don’t want to miss the chance to save $50 to $300 on your tax bill for making energy efficiency upgrades to your Elmore, AL home.

Qualifying Equipment for the Tax Credit

You have until April 15, 2014 to claim a tax credit if you purchase one or more of the following items in 2012 or 2013:

  • Highly efficient split system air conditioners and central air conditioning systems are eligible for a $300 credit. The air conditioners must have respective Seasonal Energy Efficiency Ratios (SEER) of 16 or 14.
  • Highly efficient split system and packaged electric heat pumps are also eligible for a $300 credit. The minimum Heat Seasonal Performance Factor (HSPF) for each are 8.5 and 8.0.
  • Electric heat pump water heaters and water heaters that operate on propane, oil or natural gas are eligible for a $300 tax credit. The electric heat pump water heater requires an energy factor of 2.0 while the other type of water heater must have a 90 percent thermal efficiency rating or 0.82 energy factor.
  • Boilers and furnaces with an Annual Fuel Utilization Efficiency (AFUE) rating of 95 percent or better that utilize natural gas, oil or propane are eligible for a $150 credit.
  • A fan used in conjunction with a furnace that operates on natural gas, propane or oil is eligible for a $50 credit. The energy costs for the fan can’t be more than two percent of the cost to operate the furnace.

Installing Your New HVAC System

Now that you know how much money you can save, your next step is to choose a new air conditioner, furnace, boiler or heat pump. Our company, Air Conditioning by Luquire, has been installing new HVAC equipment in the Elmore, AL area since 1983. We are pleased to be included in the five percent of HVAC dealers nationwide that are Factory Authorized Dealers for Carrier.

When you decide to have a new system installed, one of our installation specialists will complete an in-home load calculation to determine the perfect new heating or cooling equipment for your home. We do this to ensure that your new system is big enough to heat or cool your home without being larger than what you need. If your HVAC system is not properly sized for your home, it could cost more to operate than necessary and not provide you with the comfort you need.

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