Fiscal Cliff Deal Includes HVAC Tax Credits
Energy efficiency tax credits for homeowners of up to $500 are back as part of the Jan 1, 2013, fiscal cliff deal. Qualifying energy-efficient HVAC equipment installations can again receive federal tax credits for installing HVAC units that save energy and money. Water heaters, air conditioners, and heat pumps are eligible for up to $300.; furnaces and boilers are eligible for $150.
These are the popular “25C” tax credits that expired last Dec 31, 2011, and they make far more sense than most stimulus programs. Just think, a federal tax expenditure of $300. incents an air conditioner installation of approximately $3,000. That is a 10:1 multiplier ratio! Many of the government incentive programs were wholly funded by federal dollars, and they pulled nothing from the rest of the economy–they just burned money on a dollar-for-dollar basis, and that does not pencil out. These 25C tax credits on the other hand not only stimulate the economy on a lofty 10:1 ratio, they also give the homeowner ongoing savings for the life of the installed equipment–which may run up to 25 years. This program is smart and a win-win for everyone. Call your favorite HVAC contractor to see what you qualify for.