Want to get an energy-efficient air conditioning system, but are afraid of the costs? If this sounds like you, did you know that there are tax credits available from the federal government to upgrade your system to one that’s more eco-friendly?
The 25c Tax Credit, which was supposed to expire at the end of 2011 and 2012, was reinstated Jan 1 by Congress. The tax credit allows Twin Cities homeowners to claim up to $500 in tax credits to install energy-efficient appliances in their home.
How does the 25c tax credit for energy-efficient appliances work?
The 25c Tax Credit is equal to 10% of the cost (up to $300) of a new energy-efficient central air conditioner, hot water heater or heat pump. Aabbott Ferraro sells, installs and maintains air conditioning systems that meet these standards from carriers like Trane, Coleman, Fujitsu, Honeywell and more.
If you install a qualified furnace or hot water boiler, you can receive a $150 credit, while a $50 credit is available for installing a system with an advanced main air circulating fan.
What all is included in the tax credit?
The following are included in the 25c Tax Credit, and are all offered by Aabbott Ferraro:
- Water Heaters
- Heat Pumps
- Central Air Conditione
When does the tax credit expire?
The credit expires on Dec. 31, 2013.
I made a purchase in 2009/2010/2011/2012. Do I qualify?
According to the DSIRE, the current credit only applies for purchases made in 2011-2013:
For purchases made in 2011, 2012, and 2013: Aggregate amount of credit is limited to $500. Taxpayer is ineligible for this tax credit if this credit has already been claimed by the taxpayer in an amount of $500 in any previous year.
For purchases made in 2009 or 2010: Aggregate amount of credit for all technologies placed in service in 2009 and 2010 combined is limited to $1,500.
Do commercial properties qualify for this credit?
The 25c Tax Credit applies only to the residential sector. The Energy Star website notes that in order to claim the credit, the home with the installation must be your primary residence, and new construction and rentals are not applicable.
How do I apply for the tax credit?
Energy Star has all the information on what’s needed to apply for the 25 Tax Credit. Click here to see
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