Tax Credits on Plumbing, Heating & Cooling Equipment Extended!

Posted on March 10th, 2016 by carrolladmin

The American Taxpayer Relief Act of 2012 (ATRA 25C) was passed by Congress on January 1, 2013, offering numerous rebate incentives and tax credits to homeowners.  Credits and rebates fall under the general homeownership umbrella ranging from things like deductions for mortgage insurance premiums to home improvements that increase energy efficiency.   This was signed into law in an attempt to help homeowners recoup costs spent on a variety of aspects associated with homeownership.

One important tax incentive in particular is a credit for making improvements to your home to boost its energy efficiency.  This includes investments in purchasing and installing certain products such as water heaters, central air conditioners, home insulation, replacement windows, and even a new roof.

In more recent news related to ATRA, the Federal Government has reinstated a federal tax credit for homeowners. On December 18, 2015 Congress approved the extension of the 25C federal tax credits through December 31, 2016 and retroactive for 2015.  The tax credit offers a maximum rebate up to $450 for systems depending on the type of equipment being installed. This specifically applies to the purchase of air conditioners, heat pumps, furnaces, main circulating fans, boiler systems and water heaters.


Qualified equipment includes:

Air-conditioners ($300 tax credit)—Central air-conditioners with efficiency requirements of 14 SEER; 12 EER

Heat Pumps ($300 tax credit)—Split system central air-conditioners with efficiency specifications of 16 SEER; 13 EER

    • Split system electric heat pumps (8.5 HSPF; 12.5 EER; 15 SEER)
  • Packaged electric heat pumps (8.0 HSPF; 12.0 EER; 14 SEER)

Furnaces ($150 tax credit)—Natural gas, oil or propane furnaces with an AFUE of at least 95

Advanced main air circulating fans ($50 tax credit)—A fan used with natural gas, propane, or oil furnaces with no more than 2% of furnace total energy use

Boilers ($150 tax credit)—Natural gas, oil or propane boilers with an AFUE of at least 95

Water heaters ($300 tax credit)—Electric heat pump water heaters with an energy factor of at least 2.0—Natural gas, propane, or oil water heaters with an energy factor of at least 0.82 or a thermal efficiency of no less than 90%

Qualification Rules & Limitations:

    • Equipment models must meet AHRI efficiency requirements
  • Equipment must be installed in homeowner’s primary residence

Save Money, Improve Comfort

Carroll Plumbing & Heating Inc. understands how important it is for our customers to save money on energy costs and avoid emergency repairs.  This is why we recommend seasonal tune-ups and preventative maintenance to catch problems and inefficiencies before they turn into costly repairs.  If you’re in the market and considering the purchase of new equipment now might be the best time to take advantage of the savings available through these tax credit extensions.  Our team can help you make the best choice for your home and guide you through the qualification and credit process.

For more information, contact Carroll Plumbing & Heating Inc. today!