On January 2nd, 2013, President Obama signed fiscal cliff prevention legislation that retroactively reinstates the 25C tax credits for highly energy efficient HVAC and water heating equipment. The bill expired in December of 2011; however new legislation extends the HVAC tax credit through December 31, 2013, and covers qualifying equipment installed in 2012.
How this can save you money…
You may be eligible for a tax deduction of up to $1.80 per square foot if you new HVAC system lowers energy costs by at least 50% when compared to existing constructions compliant with the minimum requirements established by ASHRAE Standard 90.1-2001.
Additionally, you may qualify for partial deductions up to $.60 per square foot if your existing building envelope, lighting, or HVAC system would comprise energy savings of at least 50% if you were to install more systems.
While the recent tax deduction details have yet to be posted on Energy Star’s website, more information is available through the Department of Energy sponsored online Database of State Incentives for Renewables and Efficiency (DSIRE). Or, you can call AFGO to schedule an on-site analysis to find out if your existing HVAC system qualifies for the tax credit.