New Fiscal Cliff Legislation Saves You Money On HVAC Installation

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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 your 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.