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New Legislation Extends HVAC And Water Heating 25C Tax Credits

Written by Heidi Schwartz. Posted in Energy, FacilityBlog, Featured Post, Topics

Tagged: , , , , ,

Published on January 03, 2013 with No Comments

fiscal cliff, hvac, ahri, water heaters, tax creditsOn January 2, 2013, President Obama signed legislation designed to avoid the “fiscal cliff” and keep tax rates from increasing for every American who pays taxes. In addition to its many other tax provisions, the bill retroactively reinstates the 25C tax credits for highly efficient HVAC and water heating equipment that expired at the end of 2011.

Representatives from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) explain that the bill extends the tax credits that expired in 2011 from January 1, 2012, until December 31, 2013, for qualified equipment listed in Section 25C of the Internal Revenue Code. Because the credits were made retroactive to January 1, 2012, they can be used for qualified equipment that was installed any time after December 31, 2011. Qualified equipment includes:

Water Heaters ($300 Tax Credit)

  • Electric heat pump water heaters with an energy factor of at least 2.0 
  • Natural gas, propane, or oil water heater with an energy factor of at least 0.82 or a thermal efficiency of at least 90%

Furnaces ($150 Tax Credit)

  • Natural gas, propane, or oil furnace with an AFUE of not less than 95

Boilers ($150 Tax Credit)

  • Natural gas, propane, or oil boiler with an AFUE of not less than 95

Air Conditioners and Heat Pumps ($300 Tax Credit)

  • Split system central air conditioner that achieves the highest efficiency CEE tier as of January 1, 2009 (16 SEER; 13 EER)
  • Packaged central air conditioner that achieves the highest efficiency CEE tier as of January 1, 2009 (14 SEER; 12 EER)
  • Split system electric heat pump that achieves the highest efficiency CEE tier as of January 1, 2009 (8.5 HSPF; 12.5 EER; 15 SEER)
  • Packaged electric heat pump that achieves the highest efficiency CEE tier as of January 1, 2009 (8.0 HSPF; 12.0 EER; 14 SEER)

Advanced Main Air Circulating Fan ($50 Tax Credit)

  • A fan used in a natural gas, propane, or oil furnace with an annual electricity use of no more than 2% of the total energy use of the furnace

 

About Heidi Schwartz

Heidi Schwartz

Schwartz joined Group C Media in April 1989 as managing editor of Today's Facility Manager (TFM) magazine (formerly Business Interiors) where she was subsequently promoted to editor/co-publisher of the monthly trade magazine for facility management professionals. In September 2012, she took over the newly created position of internet director for TFM's parent company, Group C Media, where she is charged with developing content and creating online strategies for TFM and its sister publication, Business Facilities. Schwartz can be reached at schwartz@groupc.com.

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