25C Tax Credits: Available Through 2013

Posted On: March 03, 2013

The 25C federal energy-efficiency tax credits that expired at the end of 2011 have been resurrected. If you’re shopping for a high-efficiency HVAC system upgrade, inform yourself about which systems, equipment and products are eligible, the tax credit amount and more.

Qualifications for 25C tax credits

The federal tax credit is available for eligible homeowners for certain high-efficiency systems installed at their primary place of residence. The tax credit is retroactive for 2012, and is good through Dec. 31, 2013. The cap for the 25C tax credits is $500, which may be reached by combining the credits from more than one qualifying purchase or installation.

Qualifying high-efficiency HVAC systems

To be eligible for the tax credit, you must purchase qualifying HVAC systems that meet specific energy-efficiency guidelines, as follows:

  • Furnaces and water boilers must carry 95 percent AFUE (annual fuel utilization efficiency) or higher. Fuel source may be natural gas, heating oil or propane. The tax credit is 10 percent of costs up to $150.
  • Electric heat pumps must meet or exceed 8.5 HSPF (heating seasonal performance factor) for heating efficiency, 12.5 EER (energy efficiency ratio) for cooling efficiency at a specific temperature, and 15 SEER (cooling efficiency for the entire season). The tax credit for electric heat pumps is 10 percent of costs up to $300.
  • Central air conditioning systems must meet or exceed 13 EER and 16 SEER. The tax credit is the same as for heat pumps.
  • Electric heat-pump water heaters must carry an energy factor (EF) of two or more.
  • Water heaters heated with natural gas, propane or oil must have an energy factor (EF) of .82 or more, or a thermal efficiency of no less than 90 percent. The tax credit for electric- and fuel-heated water heaters is 10 percent of costs up to $300.

As part of the eligibility guidelines for the 25C tax credits, you’ll need the Manufacturer’s Certification Statement to submit along with the proper IRS forms.

Most importantly, work closely with your HVAC professional to help you choose the best equipment for your particular home and needs. For more information about 25C tax credits, contact Ernst Heating & Cooling today, and we’ll be happy to help. We’ve proudly served Metro-East homeowners since 1951.

Our goal is to help educate our customers in Hamel, Illinois and surrounding areas about energy and home comfort issues (specific to HVAC systems).  For more information about tax credits and other HVAC topics, download our free Home Comfort Resource guide. 

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