Federal Tax Credit

 

    Federal Tax Credits: Renewed for 2013 and Retroactive for 2012

    On Jan. 1, 2013, the American Taxpayer Relief Act of 2012 was extended, which continues tax credits for energy efficiency upgrades to existing homes, including purchases of heating, cooling and water heating equipment made in 2012 and 2013.

    Geothermal system tax credits and solar water heaters are unaffected by these changes and remain in place through 12/31/2016.

    Note: State, Local and Utility rebates may still be available in your respective markets for residential energy products installed in 2012. Please visit the "Homeowner Resource Center" for a list of energy efficiency tax credits by State.


    Here's what you need to know about these tax credits:

    What equipment qualifies for the credit?

    High-efficiency water heaters, furnaces, boilers, heat pumps, central air conditioners, building insulation, windows, roofs, biomass stoves, and circulating fans used in qualifying gas furnaces. Please see the chart below, which details the qualifying Rheem equipment.

    When does the tax credit expire?

    This tax credit originally expired at the end of 2011, however the American Taxpayer Relief Act of 2012 retroactively renewed the tax credit effective Jan. 1, 2012. It runs through Dec. 31, 2013, so qualifying equipment must be purchased by the end of this year. 

    What's the maximum amount that a homeowner can receive in tax credits?

    The maximum amount an eligible homeowner may receive in tax credits for improvements is $500. If you have already claimed credits of $500 or more from improvements made in 2011 or any year prior, you are ineligible to claim new credits for any new improvements made during 2012 or 2013.

    Can these tax credits be applied to energy-efficient equipment purchased for a second home?

    In order for purchases of high-efficiency heating, cooling and water heating equipment to be eligible for this tax credit, the equipment must be installed in a primary residence that is owned and used by the taxpayer 

    What do I need to do to take advantage of this tax credit?

    Your local contractor who installs the equipment can help make sure that you have the right documentation needed to claim the tax credit. You can also download the proper IRS form here.

    Where can I find out more information about these tax credits?

    DSIRE, the Database of State Incentives for Renewables & Efficiency, has more information here.

    MAXIMUM AVAILABLE TAX CREDIT PRODUCT TYPE EFFICIENCY REQUIREMENTS
    $300 Tankless Gas Water Heater EF >= 0.82 or TE >=90
    $300 Heat Pump Water Heater EF >= 2.0
    $150 High-Efficiency Gas Furnace AFUE >= 95
    $150 High-Efficiency Gas Boiler AFUE >= 95
    $300 High-Efficiency Central A/C System Must meet highest tier of efficiency established by the Consortium for Energy Efficiency
    $300 Electric Heat Pump Must meet highest tier of efficiency established by the Consortium for Energy Efficiency

    NOTE: Geothermal system tax credits and solar water heaters are unaffected by these changes and remain in place through 12/31/2016.

    IMPORTANT: This information is provided to assist in identifying applicable tax credits Rheem products, and should not be considered tax advice. Consult your tax professional to review your particular circumstances.