One of the more unique advantages to buying Energy Star® rated HVAC units such as heating and air conditioning units are the many ways they help protect the environment we live in daily. However, did you know that they also can help put money back into your pocket book; thanks in part to the new 2012 & 2013 Federal Income Tax Credits offered by the US Federal Government by purchasing select Energy Star® rated appliances?
It’s true – in fact, many people are discovering that they can save upwards of $300.00 simply by purchasing an HVAC unit that not only is designed to save you money each month on electrical bills, but also gives you an incentive for purchasing an energy saving product.
Like many other tax rebates and credits, there are certain rules that apply and standards which need to be held to in order for the tax rebate to be legitimate on your income tax returns. So, in order to answer some questions to make sure you purchase the right product and get the maximum tax credit, here are a few answers to help you along this process and find the right Energy Star® rated HVAC unit.
What is included in the 2012 and 2013 Federal Tax Credit?
In order to receive the 2012 or 2013 Federal Tax Credit for Energy Star® rated HVAC units, you must purchase one of the following types of products:
An Advanced Main Air Circulating Fan
This Energy Star® rated product is an Advanced Main Air Circulating Fan which efficiently blows air from your furnace through the duct system in your house. This is used to circulate the air more efficiently through your home.
You can receive a total tax credit amount up to $50.00 for this unit. The requirement for this tax credit is that this unit must use no more than 2% of the total energy of the furnace.
One of the more efficient products for keeping a house heated and cooled are heat pumps. These products offer a different solution to both air conditioning units and heaters. Heat pumps work by moving heat from cool spaces into a warmer location – which cools a room and then do the reverse to warm a room. Since these products are designed to simply transfer heat and cool air from one place to the other, they are more energy efficient; in fact, about 4 times as efficient as the standard heater and air conditioning units.
Air Source Heat Pumps
You can receive up to 10% of the total cost up to at least $500.00 on the purchase of an Energy Star® rated Heat Pump system. To use this Federal Income tax credit, the heat pump must be installed in an existing home and it must be your primary residence.
Unfortunately, new homes or rental properties do not apply for this tax credit. The other following HVAC units are also applicable for a tax credit of up to $300.00.
- Gas, Propane, or Oil Hot Water Boiler – must be Energy Star® Rated
- Central Air Conditioning – must be Energy Star® Rated
- Natural Gas, Propane or Oil Furnace – must be Energy Star® Rated
In order to apply for this tax rebate, you need to file IRS Form 5695 and submit it with your 2012 Federal Income Tax report prior to April 15th, 2012. If you purchase a unit this year, you will need to use the Form 5695 and enter it on line 52 of the standard 1040 form for tax year 2013 next year.
Since we’re talking about saving money, learn 3 additional changes that will make your home more efficient. If your ac unit is over due for a service call for an air conditioning service before we’re in triple digits.
On Time Air Conditioning & Heating: Making Your World A More Comfortable Place
Kristi is the owner and co-founder of On Time Air Conditioning. As an award winning director for a large fortune 500 company she attributes her early success to having high customer satisfaction standards. Kristi’s core vales and standards are focused on keeping customers happy which is the backbone and mission at On Time Air, one of the Valley’s top air conditioning companies. Kristi loves taking care of her customers, so if there is anything that you need, please contact her at 623-209-8333.