Tax Credits For Energy-Efficient Systems: Did You Know They’re Back And Even Retroactive?

Tax Credits For Energy-Efficient Systems: Did You Know They're Back And Even Retroactive?If you’ve been considering making your home “greener,” you now have even more incentive to do so. The government is once again offering tax credits for energy-efficient systems for 2013 and 2012 — the credits apply to qualifying appliances and products such as energy-saving windows and doors. By making the switch to eco-friendly products, you will reduce your carbon footprint as well as potentially earn tax credit on your federal income taxes. Additionally, you will save money on your monthly utility bills. 

Understanding how the tax credits work

On January 1, 2013, the “fiscal cliff” budget agreement reinstated energy-efficiency federal tax credits that had expired at the end of 2011. The law retroactively reinstated 25C tax credits for products that qualify and were purchased in 2012 as well as those products that qualify and were purchased in 2013. Discover how this may benefit you by looking at the following breakdown – the list shows you what type of products qualify and the potential tax credits that may apply to each:

Water heaters: $300 tax credit 

  • Electric heat pump water heaters with a minimum energy factor of 2.0
  • Propane, natural gas or oil water heaters with a minimum thermal efficiency of 90 percent or a minimum energy factor of 0.82

Heat pumps and air conditioners (that have the highest efficiency CEE (Consortium for Energy Efficiency) level as of Jan. 1, 2009): $300 tax credit

  • Split-system central air conditioners
  • Split-system electric heat pumps
  • Electric heat pumps (packaged)
  • Central air conditioners (packaged)

Furnaces: $150 tax credit 

  • Propane, oil furnaces or natural gas furnaces with a minimum Annual Fuel Utilization Efficiency (AFUE) AFUE of 95 percent

Boilers: $150 tax credit 

  • Propane, oil or natural gas boilers with a minimum AFUE of 95 percent

Advanced main air circulating fan: $50 tax credit 

  • Fans used in propane, natural gas or oil furnaces that no use more than 2 percent of the furnace’s total energy usage annually.

For more helpful information about tax credits for energy-efficient systems and other related home comfort topics, please contact us at Aladdin Heating and Cooling. We’ve been serving Detroit and the surrounding area for over 65 years.

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

Aladdin Heating services Novi, Farmington, Farmington Hills, Southfield, Oak Park, Ferndale, Beverly Hills, Berkley, Royal Oak, Birmingham, Bloomfield Twp., Bloomfield Hills, West Bloomfield, Madison Heights, Clawson, Sterling Heights, Warren, Troy, St. Clair Shores, Grosse Pointe, Grosse Pointe Woods, Grosse Pointe Farms, Grosse Pointe Park, Detroit, Utica, Shelby Twp., Rochester, Rochester Hills, Auburn Hills, Lake Orion, Oxford, and Clarkston.

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