Tax Credits Available for Furnaces, Air Conditioners, & Water Heaters Installed in 2012 and 2013

Posted On: January 10, 2013

If you had Mountain Air Conditioning & Heating install a high-efficiency air conditioner or furnace in your Ogden, Utah area home in 2012, you may have a tax credit to claim! President Obama recently signed legislation that retroactively reinstated the 25C Tax Credit. This legislation allows homeowners to qualify for a tax credit for up to $500 of installed costs for furnaces, air conditioners, or heat pumps. This tax credit is available for installations performed in 2012 and will extend through December 31 of 2013.

Installed Heating and Cooling Equipment That May Qualify

The legislation states that a homeowner can receive a tax credit of up to $500 for the installation of a furnace, air conditioner, or heat pump. The equipment must have minimum efficiency requirements, and they are:

Air Conditioners and Heat Pumps ($300 Tax Credit)

  • Packaged central air conditioner – must be at least 14 SEER and 12 EER
  • Split system central air conditioner – must be at least 16 SEER and 13 EER
  • Packaged electric heat pump – must be 8 HSPF and 12 EER and 14 SEER
  • Split system electric heat pump – must be 8.5 HSPF and 12.5 EER and 15 SEER

Furnaces ($150 Tax Credit)

  • Natural gas, propane, or oil furnace – must have an AFUE of no less than 95

Advanced Main Air Circulating Fan ($50 Tax Credit)

  • A fan used in a natural gas, propane, or oil furnace – must have an annual electricity use of no more than 2 percent of the total energy use of the furnace

Remember, the previous tax credits expired at the end of 2011. This legislation makes the tax credits for all of 2012 and 2013 retroactive so if you installed a qualified furnace or air conditioner check with your tax advisor to ensure that you receive the maximum tax credits. If Mountain Air Conditioning and Heating installed your equipment in your Ogden area home in 2012, give us a call at (801) 416-2215(801) 416-2215 and we will help you see if it qualifies.