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Cleveland HVAC Blog

High Efficiency + Tax Credits = Savings and Home Comfort

Posted by Kim Nemecek on Wed, Feb 06, 2013 @ 02:53 PM

The Federal government surprised us recently by renewing the tax credits for high efficiency HVAC equipment. Not only that, they made them retroactive for equipment installed in 2012. If you have claimed $500 in tax credits under previous energy tax programs you are not able to collect again. Even though the equipment must meet certain energy efficiency requirements, lower operating costs, available utility rebates and the tax credit combine to make them a very good investment.

HVAC systems eligible for 2012-13 tax credits include:

  • tax credits for hvac equipmentFuel Furnaces—Natural gas, propane or oil furnaces with an AFUE (Annual Fuel Utilization Efficiency) rating of 95 are eligible for federal tax credits of up to $150. Many of these furnaces also qualify for the fan credit listed below.
  • Hot Water Boilers—Oil, natural gas or propane boilers with the AFUE rating of 95 are also eligible for a federal tax credit of $150. Steam boilers are not efficient enough to qualify for any credit.
  • Air Circulating Fans—An advanced main air circulating fan (smart fan) that uses 2 percent or less of a furnace’s total energy requirement is eligible for up to a $50 credit. These fans are generally only found in the top-of-the-line furnaces offered by manufacturers.
  • Central Air Conditioners—Central air conditioning split systems with a SEER (Seasonal Energy Efficiency Ratio) rating of 16 or above and an EER (Energy Efficiency Ratio) of 13 or more can earn a homeowner tax credits of $300. Combination heating and cooling packaged systems (generally installed in homes without basements in the south) with a 14 or above rating and an EER of 13 qualify for the same tax credits.
  • Air Source Heat Pumps—Heat pumps with SEER rating of at least 15, an EER of 12.5 and an HSPF (Heating Seasonal Performance Factor) of 8.5 or more qualify for federal tax credits of up to $300. Packaged heat pump systems rated at 14 SEER and 12 EER with an HSPF of 8 also qualify for the credits.

The credit is for 10% of the installed cost of the qualifying equipment, up to the amount listed above. It is always best to check with your tax advisor to be absolutely certain of your tax situation. 

Savings with utility rebates, tax credits and lower monthly energy bills are great incentives. Get more details by calling the P. K. Wadsworth HVAC specialists for information about qualifying for the best savings and tax credits. We can match your needs with the best equipment and get the maximum credits for your home.


15 Heating Tips from PK Wadsworth


Paul WadsworthKim Nemecek works at P.K. Wadsworth Heating & Cooling. After growing up in Cleveland, she lived in Florida for many years, working at an air conditioning company there. Kim has four grown children, two grandchildren and two spoiled dogs. She lives in Solon with her husband, Todd.

The opinions and statements contained in this article are for general informational purposes only and are not instructions. Only trained, licensed and experienced personnel should attempt installation/repair. The author assumes no liability for the opinions/statements made in this article. Any individual attempting a repair or installation based on this article does so at their own risk of loss.

Topics: air conditioning, tax credits, heat pumps, furnaces

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