2012 Tax Credit for High Efficency HVAC Equipment

In December 2010, the U.S. Congress passed a 2012 tax extender bill for federal tax payers who install qualified energy-efficient retrofits in their home. This includes higher efficiency heating and cooling systems, such as central air conditioners, furnaces, heat pumps and packaged systems. These credits are only available for improvements made in 2012.

Reference Link: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

2012 Tax Credits - What You Need to Know

What is included in the Tax Credit?

  • Tax Credit of 10% of cost up to $500 or a specific amount from $50 - $300
    Details: Must be an existing home & your principal residence. New construction and rentals do not qualify. Includes Heating, Ventilating, Air Conditioning (HVAC) and Water Heaters (non-solar). Expires: 12/31/2012.

  • Tax Credit: 30% of cost with no upper limit
    Details: Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify. Includes Geothermal Heat Pumps. Expires: 12/31/2016.

  • Tax Credit: Credit Details: 30% of the cost, up to $500 per .5 kW of power capacity
    Details: Existing homes & new construction qualify. Must be your principal residence. Rentals and second homes do not qualify. Expires: 12/31/2016.