Federal Energy Tax Credit 2012

 

There has been an extension of the federal energy tax credit and it is retroactive.

  • It is extending the 2011 $500 tax credit  for both 2012 and 2013.
  • Customers should check with tax advisors or IRS before filing.  The IRS has announced that they won’t have the form for this credit ready until mid February, which will mean people claiming the tax credit will need to wait to file until then.
  • You can get these tax credits AND also collect the rebates from your local utilities.

 

The energy tax credit restrictions:

  • Has a lifetime limit of $500
  • Product meeting Energy Star requirements below
  • Installed in taxpayer’s existing principal residence;
  • Some $ limits apply – see below.

 

What energy tax credits can you get:

  • 10% credit for the purchase of qualified products up to the specific limits set below.

Air Circulating Fan: $50.  This is the blower motor that goes with the furnace.

Heat Pump: $300 for 15 SEER rated or higher.

Central Air Conditioner:  $300 for 16 SEER or higher when stand alone, 14 SEER or higher in a package.

Gas Furnace or Boiler:  $150 for AFUE 95% or higher.

Insulation:  10% of the cost of the insulation product excluding labor, up to $500.

Tankless Water Heater: $300 for .82 EF (82% efficiency) or higher.

Heat Pump Water Heater: $300.

Windows: 10% of the cost of the window excluding labor up to $200, for EnergyStar qualified windows.

Doors & Skylights: 10% of the cost of materials excluding labor, up to $500.

Caveats: For the 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, the rules will not allow the taxpayer to take 10% off the cost of the entire furnace.