EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING HOMES
On January 2, President Obama signed “The Taxpayer Relief Act of 2012” into law. Without regard to the title, there are important energy efficiency tax credit provisions in this law you should know about. In addition to its many other tax provisions, the bill retroactively reinstates the 25C tax credits for highly efficient HVAC and water heating equipment that expired at the end of 2011.
Specifically, the bill extends the tax credits that expired in 2011 from January 1, 1012, until December 31, 2013, for qualified equipment listed in Section 25C of the Internal Revenue Code. Because the credits were made retroactive to January 1, 2012, they can be used for qualified equipment that was installed any time after December 31, 2011. Qualified equipment includes:
Water Heaters ($300 Tax Credit)
Electric heat pump water heaters with an energy factor of at least 2.0
Natural gas, propane, or oil water heater with an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent
Furnaces ($150 Tax Credit)
Natural gas, propane, or oil furnace with an AFUE of not less than 95
Boilers ($150 Tax Credit)
Natural gas, propane, or oil boiler with an AFUE of not less than 95
Air Conditioners and Heat Pumps ($300 Tax Credit)
Split system central air conditioner that achieves the highest efficiency CEE tier as of January 1, 2009 (16 SEER; 13 EER)
Packaged central air conditioner that achieves the highest efficiency CEE tier as of January 1, 2009 (14 SEER; 12 EER)
Split system electric heat pump that achieves the highest efficiency CEE tier as of January 1, 2009 (8.5 HSPF; 12.5 EER; 15 SEER)
Packaged electric heat pump that achieves the highest efficiency CEE tier as of January 1, 2009 (8.0 HSPF; 12.0 EER; 14 SEER)
Advanced Main Air Circulating Fan ($50 Tax Credit)
A fan used in a natural gas, propane, or oil furnace with an annual electricity use of no more than 2 percent of the total energy use of the furnace.
Eugene A. Guilford, Jr.
President
Connecticut Energy Marketers Association [CEMA] [formerly ICPA]
10 Alcap Ridge
Cromwell, CT 06416
toll free: 866-521-4272 fax: 860-632-1122