New Tax Credit Available in Kansas City

As reported by ACCA (Air Conditioning Contractors of America), the Fiscal Cliff legislation passed this week included a tax credit for the installation of high efficiency residential air conditioning and high-efficiency heating-furnace systems.

The provision was made retroactive to include all qualifying installations starting January 1, 2012 as well as moving forward into 2013.

“This could mean free money, even for homeowners who have already replaced their furnace or AC,” said Steve Burbridge of Anthony Plumbing, Heating & Cooling. “We will be contacting our customers and we will let them know how much they qualify for.”

The reinstatement of what was known as the 25C tax credit provides an eligible taxpayer (homeowner) a tax credit of 10% (up to $500) of installed costs of  a variety of qualified energy efficient retrofit improvements to the HVAC system, insulation, roof, windows, and doors, or hot water equipment of their primary residence. While the total amount a homeowner may claim for all qualified retrofit measures is $500, the amount a homeowner may claim for each type of retrofit measure or equipment installed is subject to individual caps.

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 percent of the total energy use of the furnace.