Tax Credits for High Efficiency Equipment Reinstated to Include 2012 and 2013 - Lindstrom Air Conditioning & Plumbing

Tax Credits for High Efficiency Equipment Reinstated to Include 2012 and 2013

Included in the “fiscal cliff” legislation Congress and the president signed on December 31, tax credits for high-efficiency heating, cooling, ventilation, and water heating equipment were reinstated retroactively to January 1, 2012 and will not expire until December 31, 2013. Lindstrom Air, a locally owned and operated business since 1975, will be doing its best to ensure that consumers receive all the tax credits to which they are entitled.

Joe Canosa, General Manager of Lindstrom Air says, “For consumers, this is great news. Anyone who purchased qualified high-efficiency equipment in the past year will be rewarded for it.  Anyone who has been thinking of purchasing equipment this year now has an added incentive to do so.”

Under Internal Revenue Code Section 25C, tax credits for qualifying high-efficiency products began on January 1, 2009 and expired on December 31, 2011. 

The list of equipment is specific, and to qualify for the rebates it must meet the requirements.

  • Air conditioners and heat pumps may qualify for $300 in tax credits each.  They must have the highest efficiency rating as of January 1, 2009, as determined by the Consortium for Energy Efficiency (CEE). Requirements include:

    • 1. Split system central air conditioner :16 SEER; 13 EER
    • 2. Packaged central air conditioner 14 SEER; 12 EER
    • 3. Split system electric heat pump: 8.5 HSPF; 12.5 EER; 15 SEER
    • 4. Packaged electric heat pump: 8.0 HSPF; 12.0 EER; 14 SEER
  • Advanced main air circulating fans are eligible for a $50 tax credit. The fan must be used in a natural gas, propane, or oil heating system. Its annual electricity use must be no more than two percent of the heating system’s total energy use.
  • Heating system and boilers may qualify for a $150 credit.  They must be natural gas, oil, or propane and have an AFUE of 95 or greater.
  • Water heaters may receive a $300 credit.
  • Natural gas, oil, or propane water heaters must be at least 90% efficient or have an energy factor of 0.82 or greater.
  • Electric heat pump water heaters must have an energy factor of 2.0 or greater.

“If you have any question at all whether the equipment you purchased in 2012 qualifies, contact your contractor as soon as possible to be sure your equipment qualifies and that you have all the necessary paperwork in place before claiming your credit,” Canosa continues.

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