On New Year’s Day of this year, Congress approved a legislative package that extends previously expired tax credits. The fiscal cliff avoidance legislation will benefit many homeowners, often retroactively, for efforts they made to improve energy efficiency in their homes in 2012. The tax credits apply to efficient energy improvements made on new and existing homes from January 1, 2012 until December 31, 2013.

The 25C tax credit originally expired in 2011. Homeowners can once again claim up to $500 in credit for installing energy-efficient appliances throughout 2012 and 2013. This includes:

  • Advanced main air circulating fans (up to $50): Used in a propane, natural gas or oil furnace. The fan must require no more than 2 percent of the total energy of the furnace.
  • Furnaces and boilers (up to $150): Must use propane, natural gas or oil and have an AFUE (Annual Fuel Utilization Efficiency) of at least 95 percent.
  • Split air conditioners with a minimum SEER (Seasonal Energy Efficiency Ratio) of 16 and a minimum EER (Energy Efficiency Ratio) of 13 and packaged air conditioners with a minimum SEER of 14 and EER of 12 are eligible for up to $300.
  • Split-system heat pumps with a minimum HSPF (Heating Seasonal Performance Factor) of 8.5 and a minimum SEER of 15 and minimum EER of 12.5 are eligible for up to $300.
  • Electric heat pump water heaters with a minimum EF (Energy Factor), or natural gas, propane or oil with a minimum EF of 0.82 and that offer a minimum of 90 for thermal efficiency are eligible for up to $300 in tax credits.

For further expert advice on how to benefit from the new tax credits and other information relating to home comfort, please do not hesitate to contact us at Around The Clock. We have been serving Los Angeles and Ventura County for more than 45 years.

Our goal is to help educate our customers in Los Angeles, North Hollywood 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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