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The Furnace, AC or Water Heater You Installed May Qualify For Tax Credits

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Did you install a new furnace, air conditioner, or water heater in your Cincinnati area home in 2012? If so, you could be eligible for a tax credit. On January 2nd, President Obama signed legislation that retroactively reinstated the 25C tax credits for high-efficiency furnaces, air conditioners, and water heaters. That means that you could get a tax credit of up to $500 depending on what you installed. Below is a breakdown of the eligible equipment and the tax credit amount available:

Air Conditioners and Heat Pumps ($300 Tax Credit)

  • Packaged central air conditioner – must be at least 14 SEER and 12 EER
  • Split system central air conditioner – must be at least 16 SEER and 13 EER
  • Packaged electric heat pump – must be 8 HSPF and 12 EER and 14 SEER
  • Split system electric heat pump – must be 8.5 HSPF and 12.5 EER and 15 SEER

Water Heaters ($300 Tax Credit)

  • Natural gas, propane, or oil water heater – must have an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent
  • Electric heat pump water heaters – must have an energy factor of at least 2.0

Furnaces ($150 Tax Credit)

  • Natural gas, propane, or oil furnace – must have an AFUE of no less than 95

Boilers ($150 Tax Credit)

  • Natural gas, propane, or oil boiler – must have an AFUE of no less than 95

Advanced Main Air Circulating Fan ($50 Tax Credit)

  • A fan used in a natural gas, propane, or oil furnace – must have an annual electricity use of no more than 2 percent of the total energy use of the furnace

Previous tax credits had expired at the end of 2011. This new law makes the credits retroactive for all of 2012 and extends them to cover all of 2013. So if you installed any qualified heating, cooling or plumbing equipment after Dec. 31st, 2011, you may be eligible for tax credits. Check with your tax advisor to make sure you get the maximum tax credits. If you installed a furnace, air conditioner, heat pump or water heater in your Cincinnati area home this past year, give Schneller a call at 859-757-1877. We can help you see if your heating and cooling equipment qualifies. Happy 2013!

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