Posts Tagged ‘Tax Credit’

Federal Tax Credits Renewed

2016 22-03

A number of tax credits for residential energy efficiency have been renewed.  These tax credits are available for purchases made in 2016, as well as retroactive to purchases made in 2015 for qualifying Energy Star rated units.

These credits are available for equipment you purchase for your existing residence when replacing equipment.

Available credits include:

  • Central Air Conditioners with ratings at equal or exceed 16 SEER and 13 EER
  • Boilers with AFUE ratings of 95% or higher
  • Furnaces with AFUE ratings of 95% or higher
  • Water Heaters with energy factors of 0.82 or higher

For more information on credits available, visit ENERGY STAR.

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*The tax credit information contained within this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the IRS.

Take Advantage of The Tax Credit Before Its Too Late

2013 30-07

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. Here are some frequently asked questions about the 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. Qualifying Rheem equipment includes:

  • Tankless Gas Water Heater With an efficiency rate of 0.82 or higher – $300
  • High–Efficiency Gas Furnaces with an AFUE of 95 or greater – $150
  • High–Efficiency Central A/C System  that achieves the highest efficiency CEE tier as of January 1, 2009 (16 SEER; 13 EER) – $300
  • Advanced Main Air Circulating Fan – $50

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 for improvements is $500. If you have already claimed credits of $500 or more from improvements made in 2011 or any year prior, you are ineligible 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.

For information on installing a new system and taking advantage of this tax credit, contact your local Rheem contractor.

Fujitsu Mini-Splits Eligible For Federal Tax Credit

2013 01-05

The Energy Tax Extenders of The American Taxpayers Relief Act of 2012 extends the federal tax credits that expired in 2011 from January 1, 2012 until December 31, 2013 for “Qualified Energy Property” listed in Section 25C of the Internal Revenue Code. Because the credits were made retroactive to January 1, 2012, tax credit is available for qualified equipment that was installed any time after December 31, 2011.

A tax credit can provide significant savings. It reduces the amount of income tax you have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the tax itself. 

The federal tax credit for qualified Fujitsu equipment is 10% of the amount paid but shall not exceed $300 for the qualified energy property. There is a lifetime limit of $500 for this credit, meaning if a homeowner has previously claimed the credit (up to $500), they are not eligible to claim it on their 2012 and 2013 tax returns. As every taxpayer’s situation is different, please consult a tax advisor for the actual credit.

For a list of Fujitsu units that are eligible for the tax credit download the Manufacturer’s Certification Statement  

To claim your tax credit, you will need to submit this form. IRS Form 5695  

The above is provided for informational purposes only.  Consumers should verify available tax credits with your tax advisor.

Fiscal Cliff Impact on New Systems

2013 07-01

Legislation has been approved to avoid the “fiscal cliff.” In addition to 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.

Specifically, the bill extends the tax credits that expired in 2011 from January 1, 1012 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)
  • Furnaces ($150 Tax Credit)
  • Boilers ($150 Tax Credit)
  • Air Conditioners and Heat Pumps ($300 Tax Credit)
  • Advanced Main Air Circulating Fan ($50 Tax Credit)

To find out more about the tax credit available to homeowners, visit the Federal Energy Efficiency Tax Credit Page of the AHRI website.