Tax Credit Extended For Energy Efficient Upgrades: Tax Credit For Heating And Cooling Equipment Extended

SAN DIEGO, CALIFORNIA—Do you need an air conditioning repair but keep putting it off? Have you been considering an upgrade to your heater that keeps breaking down?

“Instead of pumping more money into an old system, it might be more cost effective to have a new energy efficient indoor comfort system installed,” says Gabriel Carini. (http://www.cariniair.com/about-us/)

On Jan. 1, 2013, Congress passed the American Taxpayer Relief Act of 2012 that modified and extended certain energy efficiency tax credits. (http://www.gpo.gov/fdsys/pkg/BILLS-112hr8eas/pdf/BILLS-112hr8eas.pdf) The legislation included an extension of the 25C tax credit that allows homeowners to claim up to $500 in tax credits when they make qualified energy efficient improvements to their homes. This tax credit only applies to specific installation measures purchased in 2012 and 2013.

“Because the amendments are retroactive, homeowners who upgraded their heating and cooling systems in 2012 may be eligible for a tax credit this year,” says Carini. “This extension goes through the end of this year, so if you need a new system you might want to take advantage of this credit.”

Why Choose Energy Efficient?
The tax credits and rebates are good incentives to choose an energy efficient system, but here are a few other good reasons to choose energy efficient heating and air conditioning products:

1. Cut down on heating and cooling costs. Incorrectly installed heating and cooling equipment and poorly sealed or insulated ducts are often the reasons for high utility bills in summer and winter. A new energy efficient system will cut down on the monthly heating and cooling costs and save you money.
2. Improve indoor air quality. Some homes are plagued by excessive dust, mold, mildew or musty smells, which can be caused by several common HVAC problems. A heating, ventilation and air conditioning service expert can determine whether the problem is caused by a clogged air filter, leaky ductwork or improperly sized or installed air conditioners. (http://www.cariniair.com/services/) After the new energy efficient system is installed properly, all the problems should be resolved.
3. Eliminate hot and cold spots. A couple of the factors that can cause significant differences in temperature from one room to another are poor duct performance and HVAC equipment installed incorrectly.

“We can help you determine the ideal system for your air conditioning and heating needs that also qualifies for the tax credit,” says Carini. “And, most importantly, we can make sure the unit has been installed properly, so you don’t end up with an efficient system installed in a way that negates the benefits.”

The Internal Revenue Service Form 5695 can be used to claim you tax credit. (http://www.irs.gov/pub/irs-pdf/f5695.pdf) There may be other financial incentives in your area for heating and cooling equipment, which can be found by checking the Database of State Incentives for Renewables & Efficiency. (http://www.dsireusa.org/)

As a part of the recently passed American Taxpayer Relief Act of 2012, Congress modified and extended its energy efficiency tax credits for appliances, new homes and retrofits to existing homes, which includes the 25C heating and cooling equipment tax incentive for 2012 and 2013. The new legislation extends the cumulative cap of a $500* maximum tax credit.