Is your HVAC system in dire need of upgrades? Afraid your heating and cooling equipment might not make it another year? Don’t put it off another season. Valuable federal tax credits can help ease the financial burden, but they are only available for a few more months.
These tax credits were originally signed into law in 2008 and were set to expire in 2011. President Obama signed an extension making them good through December 2013. The credits are designed to help Americans afford more energy efficient heating and cooling equipment for their homes. This helps save money on energy bills and reduces the amount of harmful greenhouse gases being emitted into the atmosphere.
The credits are available for upgrades in existing, primary-residence homes only; rental properties and new homes are not eligible. The credits are good for 10 percent of the total cost or a specific amount between $50 and $300 depending on what kind of equipment is chosen.
To qualify for these tax credits, products must meet specific energy efficiency criteria. For example, a package system, central air conditioning unit needs to have a SEER (Seasonal Energy Efficiency Ratio) of 14 or higher and an EER (Energy Efficiency Ratio) of 12 or higher. These ratings indicate how efficiently the product uses the energy required to run it. The higher the rating, the more money you can save on your energy bills with the product.
To receive the tax credit, you’ll need to file form 5695 with the IRS. Retain all the receipts for the purchase and installation of your new equipment, as you may need them for a successful application. Also, you should receive a certificate from the equipment manufacturer stating that the equipment qualifies for the tax credit. Hold on to this document for your records as well.
To explore the options available for your credit-eligible upgrades, please contact us at Thermacon Service Company, Inc. We’ve been serving Beaumont, Texas and the surrounding areas for over 30 years. Our friendly, professional staff is here to answer all your heating and cooling questions.