Have you been thinking about upgrading your air conditioning system before the summer Florida heat sets in? Or perhaps you what to replace your heating system with an energy-efficient heat pump? Act this year and qualify for energy tax credits on your 2013 tax return.
What are the energy tax credits?
Reinstated on January 2, 2013, the federal energy tax credits give homeowners a credit on their federal tax returns of up to $500 for materials and labor on selected HVAC items installed during 2013. (Congress also made the credits retroactive to 2012; be sure to take your credit if you made qualifying improvements last year.) The energy upgrades must be made to your primary, existing residence. Improvements on new construction, rental properties and vacation homes don’t qualify.
What items qualify for the tax credits?
Several HVAC appliances qualify for tax credits. Among them are:
- Central air conditioning systems
- Heat pumps
- Water heaters (natural gas, propane or heating oil)
- Furnaces (natural gas, propane or oil)
- Advanced main circulating fan
Be aware that not every item in these categories qualifies for a tax credit, even some of the energy-efficient models. It’s a good idea to have an HVAC professional help you select your new equipment to make sure that you choose a qualifying appliance.
Claiming your tax credit
Once you’ve purchased a qualifying item and it’s been installed, claiming your tax credit is easy?much easier than claiming a manufacturer’s rebate. You simply complete IRS Form 5695 and file it with your 2013 (or 2012) tax return. Your credit is automatically added to your refund or deducted from your tax obligation. Be sure to save your Manufacturer’s Certification Statement and receipts with your tax paperwork in case of an audit.
If you’d like to learn more about how upgrading your south Florida HVAC systems can not only save you energy dollars, but tax dollars too, call Robert R. McGill Air Conditioning. We’ve been serving home and business owners in eastern Palm Beach, southern Martin and eastern Broward counties for more than 30 years.
Our goal is to help educate our customers in Palm Beach County, Florida about energy and home comfort issues (specific to HVAC systems).?
Image courtesy of Shutterstock
Filed under: Tax Credits
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