Buying and installing an air conditioner or a heat pump is a popular home cooling solution. A combination of energy-efficient products, insulated walls, roofs and windows minimizes your power consumption and carbon footprint. The air conditioner energy credit is designed to remove obsolete HVAC equipment in exchange for environmentally friendly devices in American homes.
The American Tax Payer Relief Act of 2012 has extended energy tax credits until Dec. 31, 2013. Your decision to purchase an eligible air conditioner will both help enhance your home’s energy efficiency and make you eligible for energy credits.
You can claim 10 percent of the cost of purchase and installation of HVAC equipment as an air conditioner energy credit is subject to a maximum limit. The eligibility requirements focus on the date of purchase, the specifications of the device purchased, and the nature of the property in which the device is installed.
It’s a good idea to review or print out any necessary forms prior to having your contractor purchase your AC unit. You want to ensure the equipment meet the energy requirements for the tax rebate. You can ask your HVAC contractor about this federal program, as well if there are any similar city or state options.
Be sure to get an itemized receipt for your AC and other materials from your contractor too in case you need a proof of purchase.
The following eligibility conditions must be fulfilled:
- The device was purchased and installed on or before Dec. 31, 2013.
- The HVAC device is installed in an existing home that serves as the principal residence of the person claiming the tax credit. The air conditioner energy credit is not available for an AC installed in a new construction or in rental properties.
- A maximum tax credit of $50 can be obtained upon purchase and installation of an advanced fan for main air circulation. The fan cannot use more than 2 percent of the total energy consumed by the furnace.
A maximum tax credit of $300 can be obtained upon purchase and installation of heat pumps that conform to the following requirements:
- Split heat pumps must have a Heating Seasonal Performance Factor (HSPF) of not less than 8.5, an Energy Efficiency Ratio (EER) of not less than 12.5 and a Seasonal Energy Efficiency Ratio (SEER) of not less than 15.
- Package heat pump systems must have an HSPF of not less than 8, an EER of not less than 12, and an SEER of not less than 14.
A maximum air conditioner energy credit of $300 can be claimed upon installation of an air conditioner that fulfills the conditions given below:
- Split devices must have an EER of not less than 13 and an SEER of not less than 16.
- Package systems must have an EER of not less than 12 and an SEER of not less than 14.
- The HVAC devices must meet all the HSPF, EER and SEER specifications prescribed for the category.
- A package central air conditioner must have an EER of not less than 12 and an SEER of not less than 14 to be eligible for tax credits.
It is important to consider tax credit eligibility when using Reply! to find the best air conditioner estimate offered by a professional contractor in your area. Keep in mind the air conditioner energy credit eligibility and how it reduces costs and maximizes savings.