Eligibility Requirements for 2013 Tax Credits for Heating and Cooling

Homeowners with older heating or cooling systems should consider upgrading to high efficiency models in 2013. Installing a high-efficiency A/C system or a more efficient furnace will save you money on energy use, compensating for the initial expense of a new unit, while a newly reinstated tax credit — of up to $500 — will also help reduce the cost of a system upgrade. The credits are part of the “fiscal cliff” package signed into law on Jan. 2, 2013, in which Congress reinstated some federal tax credits, making them valid for 2013 and retroactive for 2012. This means that consumers who made the choice to convert to a more efficient system in 2012 can also take advantage of the tax credits for heating and cooling.

How can you take advantage of residential energy credits?
Below are some general eligibility requirements. These guidelines are based on past requirements for the credit.

The equipment must be:

  • a qualifying unit, as listed in Section 25C of the Internal Revenue Service Code.
  • installed January 1, 2012, or later.
  • installed in the individual’s primary residence.
  • Individual taxpayers may not exceed the lifetime residential tax credit limit of $500.
  • Depending on an individual’s tax situation, the amount of the credit is limited to up to 10 percent of installed costs (maximum of $500) with lower caps on some types of units.

Those filers planning to take advantage of the tax credits for heating and cooling for 2012 should plan to delay filing until sometime in late February or March, as the IRS will delay processing returns to adjust for tax law changes. If you apply for the credit, be sure to consult a tax professional about your specific situation.

Homeowners with questions about heating and cooling system upgrades can contact Roth Heating & Cooling. We are the Portland area’s top heating and cooling service company, proudly serving homeowners since 1976.