In January 2013, Congress approved a legislative package that reinstated dozens of popular tax breaks that benefit both small businesses and homeowners, including the 25C tax credits for qualifying HVAC equipment. Although tax credits for solar energy equipment and geothermal products are available through 2016, the 25C tax credits expire soon on most retrofits for energy-efficient HVAC equipment. Homeowners have until December 2013 to upgrade their existing systems and fill out Form 5695 to take advantage of these tax credits.

Qualifying HVAC Products for the 2013 25C Tax Credits

Eligible taxpayers may claim a tax credit up to 10 percent of the installed costs for retrofit improvements to the HVAC system of their primary residence. Although the maximum amount a taxpaying homeowner may claim for qualified HVAC systems is $500, each type of retrofit is subject to specific monetary limits. With the installation of a high efficiency heat pump, hot water heater or central air conditioner, the cap is $300. The cap for qualified hot water boilers and furnaces is $150. A smaller tax credit cap of $50 is available for a system with a new advanced main air circulating fan.

Energy Efficiency Ratings Required for the 2013 Tax Credits

Here is list of the qualifying HVAC equipment and their required ratings:

  • Furnaces and Hot Water Boilers: No matter what the fuel, all furnaces and hot water boilers must all have a minimum of 95 percent AFUE.
  • Heat Pumps: Packaged heat pump systems must meet or exceed 8 HSPF,12 EER and 14 SEER. Air source heat pumps must have a minimum of 8.5 HSPF, 12.5 EER and 15 SEER.
  • Central Air Conditioners: Packaged central air conditioner systems must have a minimum of 12 EER and 14 SEER. Split system central air condition systems must meet or exceed 13 EER and 16 SEER.
  • Main Air Fan: Advanced main air circulating fans must use less than 2 percent of the unit’s total energy.

Upgrade with Custom Air in Bradenton FL

If you’re ready to install a new energy efficient HVAC system that qualifies for the 2013 tax credits, be sure to visit us at Custom Air. From energy efficient furnaces and hot water boilers to heat pumps and central air conditioners, we carry and install a wide array of systems that meet the federal government’s guidelines for the 2013 tax credits and deliver ultimate comfort year-round. All of our products come with great warranties and are installed by our certified and experienced HVAC technicians. In addition, we’ll help you select the best unit for your unique needs and do a cool and heat load calculation to ensure that your new system is just the right size for efficiency and indoor comfort.