Good news for tax payers in Charlotte, North Carolina!
Aimed at averting the “fiscal cliff,” the American Taxpayer Relief Act of 2012 (ATRA) has extended numerous energy-efficiency and renewable energy deductions and credits for another year—and that means more savings for you! Energy tax credits from 2011 that expired on January 1, 2012 have been extended to December 31, 2013. Because these tax credits were reinstated retroactively, they can be used on any qualifying equipment installed after December 31, 2011. Any eligible taxpayer (homeowner) can claim a tax credit of up to $500 in qualifying HVAC and water heating equipment. Of course, there are a few limitations. Here are some of the details:
Water Heaters (Tax Credit: $300)
Electric heat pump, propane, natural gas, and oil water heaters may qualify. Minimum standards apply on the energy factor and the thermal efficiency of the water heater.
Furnaces (Tax Credit: $150)
Propane, natural gas, or oil furnaces may qualify. Minimum standards apply on the AFUE (annual fuel utilization efficiency) of the furnace.
Boilers (Tax Credit: $150)
Propane, natural gas, or oil boilers may qualify. Minimum standards apply on the AFUE (annual fuel utilization efficiency) of the boiler.
Air Conditioners and Heat Pumps (Tax Credit: $300)
Split-system central air conditioners, packaged central air conditioners, split-system electric heat pumps, and packaged electric heat pumps may qualify. Minimum standards apply on the SEER (seasonal energy efficiency ratio), EER (energy efficiency ratio), and HSPF (heating seasonal performance factor) of the air conditioner or heat pump.
Advanced Main Air Circulating Fans (Tax Credit: $50)
Propane, natural gas, or oil furnace fans may qualify as long as they have a maximum annual electricity use of 2% of the total energy of the furnace.
Details about qualifying equipment can be found in Section 25C of the IRC (Internal Revenue Code). If you already have some of the above-mentioned equipment in your home, don’t forget to claim your tax credits! Consult your tax advisor for additional details and instructions about the 25C tax credit extension.
On the other hand, if you haven’t upgraded your air conditioning and heating system yet, now is the time to do so. If you would like to take advantage of both the energy savings and the $500 tax credit, contact a qualified HVAC company to learn more about product eligibility. Residents of Charlotte, North Carolina can call Acosta Heating, Cooling & Electrical at 704.665.5998for more information.