240-399-5051

Do you qualify for a federal energy tax credit?

Posted on: March 12, 2013

Did you install a new energy efficient HVAC system or water heater last year in the Washington, DC Metropolitan area? Are you wondering if you apply for the federal energy tax credit that is currently available? Thanks to the retroactive reinstatement of the 25C residential tax credits for 2012 that had previously expired on December 31, 2011, you could be eligible!

Any eligible taxpaying homeowner can claim their federal energy tax credit for up to 10 percent (up to $500) of installation costs for a variety of qualified energy efficient retrofit improvements to the HVAC systems, insulation, roof, windows, doors, and hot water equipment of their primary residence. Although the total amount claimed may not exceed $500, the amount you can claim for each type of retrofit improvement is subject to individual price caps.

Call James A. Wheat & Sons today at 240-399-5051240-399-5051 to find out if your equipment qualifies for a federal energy tax credit!

Installations that Qualify for a Federal Energy Tax Credit

Do you want to know if your high efficiency system qualifies for a federal energy tax credit? Here are the standards, according to Air Conditioning Contractors of America:

Furnaces ($150 tax credit): natural gas, propane, or oil furnaces with an annual fuel utilization efficiency (AFUE) of 95 or greater

Boilers ($150 tax credit): natural gas, propane, or oil boilers with an AFUE of 95 or greater

Air Conditioners and Heat Pumps ($300 tax credit):

  • Split system central air conditioners that achieve the highest efficiency CEE tier as of Jan. 1, 2009 (16 SEER; 13 EER)
  • Packaged central air conditioner that achieves the highest efficiency CEE tier as of Jan. 1, 2009 (14 SEER; 12 EER)
  • Split system electric heat pump that achieves the highest efficiency CEE tier as of Jan. 1, 2009 (8.0 HSPF; 12.5 EER; 15 SEER)
  • Packaged electric heat pump that achieves the highest efficiency CEE tier as of Jan. 1, 2009 (8.0 HSPF; 12.0 EER; 14 SEER)

Water Heaters ($300): Electric heat pump water heaters with an energy factor of at least 2.0, and natural gas, propane, or oil water heaters with an energy factor of at least 0.82 or a thermal efficiency of at least 90

How to Get Your Federal Energy Tax Credit

If you installed any of the above in 2012, and you think you are eligible for a federal energy tax credit in Maryland or Washington, DC, the IRS will soon release information instructing taxpayers on how to file a claim. If it is anything like the previous HVAC tax credits, you will be required to file a Form 5695 when submitting your tax forms, as well as a keep a copy of the Manufacturer’s Certification Statement with your records.

Learn More About High Efficiency Tax Credits

If you’re unsure whether or not your equipment installation qualifies for the federal energy tax credit, contact us today! We’re happy to help you determine whether or not you qualify and help you install energy efficient systems in the future.

Some of the high efficiency installations we provide include:

Schedule your installation today!