The renewed “25C” tax credit for 2014 allows homeowners to get up to $500 in tax credits when installing qualified home improvements. Depending on their eligibility, homeowners may qualify for tax credits equal to 10% of the costs (up to $300) for qualifying new high efficiency central air conditioners, heat pumps or hot water heaters.
Homeowners may qualify for additional tax credits equal to 10% of the costs (up to $150 limit) for installing qualified furnaces or boilers. A smaller tax credit of 10% of the installed costs (up to $50 limit) is available for installing a system with an advanced main air circulating fan.
- A central air conditioner must meet or exceed 16 SEER and 13 EER; package system central air conditioners must meet or exceed 14 SEER and 12 EER.
- A heat pump must meet or exceed 15 SEER and 12.5 EER and 8.5 HSPF. Package heat pump systems must meet or exceed 14 SEER and 12 SEER and 8 HSPF.
- Natural gas furnaces, propane furnaces, natural gas hot water boilers, propane boilers, oil furnaces, and oil hot water boilers must meet or exceed 95% AFUE.
- For the advanced main air circulating fan credit, the fan must use no more than 2% of the furnace’s total energy. If the fan is qualified, but the furnace is not.
- There is a lifetime residential energy tax credit limit of $500, retroactive to January 1, 2005.
We are excited to announce the reinstatement of the “25(c)” tax credit for energy-efficient improvements to existing homes. On January 2, 2013 The American Taxpayer Relief Act of 2012 retroactively renewed the federal tax credit for homeowners who install qualified high-efficiency, energy-saving products in their homes between January 1, 2012, and December 31, 2013. Under 26 U.S.C. § 25(c), any qualified cooling and heating system installed in 2012 or 2013 is eligible for this credit, subject to IRS regulations.
The applicable tax credit eligibility requirements are as follows:
- Up to 10% of installed costs ($300 limit) for central split-system air conditioners meeting or exceeding 16 SEER and 13 EER.
- Up to 10% of installed costs ($300 limit) for split-system air-source heat pumps meeting or exceeding 15 SEER, 12.5 EER and 8.5 HSPF.
Please refer to www.mitsubishicomfort.com/taxcreditfor further details.