Restored Energy Tax Credits: A Significant Little Something In The Fiscal Cliff Deal

While the amount of information included in the recent “fiscal cliff” agreement in Washington can be overwhelming, one item of significance that should not be overlooked by savings-conscious homeowners is the extension of the 25C federal energy tax credits.  

The reinstated energy tax credits for 2013 (retroactive to all of 2012) allow homeowners to receive tax credits of up tRestored Energy Tax Credits: A Significant Little Something In The Fiscal Cliff Dealo $500 for making qualified energy-efficient improvements and upgrades to their homes. While the maximum credit that a taxpayer can receive for qualified equipment and upgrades installed is $500, that total can include a variety of qualified energy-efficient upgrades. Here’s a list of some of the qualified equipment and the maximum tax credit associated with each upgrade:

  • Insulation: Up to 10 percent of the total cost with a cap of $500.
  • Exterior window that meets Energy Star requirements: Up to 10 percent of the cost with a cap of $200.
  • Exterior door that meets Energy Star requirements: Up to 10 percent of the total cost with a cap of $500.
  • Central air conditioner that meets the highest efficiency tier established by the Consortium for Energy Efficiency (CEE):  $300.
  • Electric heat pump that meets the highest efficiency tier established by the CEE: $300.
  • Natural gas, propane or oil furnace with an AFUE rating of at least 95 percent: $150.

In order to take advantage of these residential energy credits, you will need to submit a Form 5695 with your taxes.

If you are in the market to upgrade your home’s HVAC system, the extension of the energy tax credits makes 2013 the ideal year to make this change. Geisel Heating, Air Conditioning and Plumbing has been serving the greater Cleveland area for nearly 80 years, and our team of experienced professionals can help your home to run more efficiently. Please contact us today.

Our goal is to help educate our customers in Western Cleveland, Ohio about energy and home comfort issues (specific to HVAC systems).  For more information about energy tax credits and other HVAC topics, download our free Home Comfort Resource guide.

For those Do it Yourselfers who would rather take control of your own indoor comfort, you can shop our online store for replacement parts, products and accessories!   

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