Tax Credits

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Tax Credits

Your Bryant System Purchase Could Get You Up To $500 In Federal Tax Credits

BryantThe American Taxpayer Relief Act of 2012 passed in January 2013 retroactively extends tax credits for homeowners replacing heating and cooling equipment for their primary residence with qualifying, high-efficiency products. Tax credits, unlike deductions, are subtracted directly from your personal income tax liability.

For example, if you complete your tax return and calculate that your tax liability is $2,000, a tax credit of $500 may reduce your tax liability to only $1,500. Be sure to check with your tax advisor to determine eligibility for and how to best take advantage of the tax credits.

Here’s How It Works

Product purchase must be for your principal residence and be “placed in service” between January 1, 2012 and December 31, 2013. According to the IRS “placed in service” means when the original installation of the product is completed.

  • System components must meet efficiency levels set by the Federal government. Note that NOT all ENERGY STAR® qualified products are eligible.

 

Federal Tax Credit Program

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides for federal tax credits on qualifying, high-efficiency residential heating and cooling products and systems (HVAC) through December 31, 2013.

This program is an extension of the federal tax credits that were in effect during 2009, 2010, and 2011.

  • The maximum amount an eligible homeowner may receive in federal tax credits for purchasing and installing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, is now 10% of the cost of the improvement, including installation costs, up to  $500 (with maximum per-category amounts listed below).
  • The $500 tax credit amount is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2013. If a residential homeowner has already claimed single-family home tax credits of $500 or more from improvements made prior to 2013, he or she cannot claim any new tax credits during 2013.
  • All furnaces and boilers, whether fueled by natural gas, propane or fuel oil, must have an AFUE rating of 95% or higher to be eligible.
  • Products or units must be installed between January 1, 2009, and December 31, 2013, to be eligible for tax credits.

 

CreditProduct TypeEfficiency Requirements
$50Any Advanced Main Air Circulating FanElectricity consumption of no more than 2%  of the total energy use of the furnace – Amana Brand Tax Certificate, Distinctions Brand Tax Certificate
$150Natural Gas, Propane, Oil Furnaces or Boilers95% AFUE rating – Amana Brand Tax Certificate, Distinctions Brand Tax Certificate
$300Split-System Air Conditioners16 SEER / 13 EER — Tax Certificate
$300Split-System Heat Pumps15 SEER / 12.5 EER / 8.5 HSPF — Tax Certificate
$300Packaged Air Conditioners14 SEER / 12 EER — Tax Certificate
$300Packaged Heat Pumps14 SEER / 12 EER / 8 HSPF — Tax Certificate
$300Packaged Gas/Electric Units14 SEER / 12 EER — Tax Certificate

This information is provided for discussion purposes only and is provided as a generic guideline. No consideration should be taken that this information represents tax advice. Contact your local tax professional to determine how these credits may apply to your circumstances and visit www.energy.gov/taxcredits for more information. Contact us today!