Have you been considering replacing your old A/C with a new, more energy-efficient one, but are afraid to make an expensive investment? Federal energy tax credits can help ease the financial burden. These credits can save you money at tax time, and you’ll continue to save money on energy costs every time you use your new, more efficient unit. Now is the time to act; these credits expire at the end of 2013.
These tax credits are granted in collaboration with the federal Energy Star program, which aims to provide consumers an incentive to purchase more energy-efficient technology. Energy Star technology saves money and reduces the emission of greenhouse gases that can pollute the environment and contribute to global warming. These credits apply for new units in existing homes only. Newly built homes and rental properties are not eligible for the credits.
For central air conditioning units, a tax credit is available until December 31, 2013. This credit is available for up to $300; the amount depends on the price and type of unit installed. Qualifying A/C units must meet certain standards set by the Consortium for Energy Efficiency (CEE). A Seasonal Energy Efficiency Ratio (SEER) of at least 16 is required for most units to qualify. The Energy Star website has more on information on efficiency ratings.
To apply for tax credits, you must file an IRS 5695 form. Be sure to hold on to the receipts from the purchase and installation of your new equipment as well. Manufacturers are responsible for providing a certificate documenting that their product is eligible for the credit, so remember to obtain a copy and keep it for your records.
The team at Preferred Air Conditioning and Mechanical has been proudly serving South Florida for over 20 years, and is ready to provide solutions for all your A/C and HVAC needs. Contact us today to learn more about federal tax credits and how you can take advantage of them before they expire.