Tax Credits Are Back
If you missed out on the 25C tax credit program originally started in 2009, it’s back! You now can use this credit in 2013 for purchasing a new water heater or HVAC system. The new fiscal cliff legislation brought back this popular program that some of you may remember from 2009.
The Federal Tax Credits for Energy Efficiency program paid 1/3 of the cost of a new qualifying heating & cooling system or water heater for your primary residence. There were no income limits on this program and everyone could take advantage of this credit if you earned income and paid taxes of at least $500 a year. This is the same program. Just replace your old worn out system with a new high efficiency gas furnace, air conditioner or efficient water heater and you will get up to $500 in credit from the federal government.
In the world of air conditioners, to qualify for the tax credit, the new unit has to be 16 seer or greater and the furnace has to be variable speed furnace or 95% efficient. A new water heater must be at least 90% efficient if gas or if electric, have an energy factor of at least .82. Both HVAC systems and water heaters such as these will significantly reduce your energy consumption and enhance your comfort level. These systems including special D/C powered motors and very efficient compressors that help remove more moisture in the summer time and provide much more even heat in the winter. The tax credit is a great way to help pay for the more efficient system and start saving on utility costs.
One of the most asked about products on the market today is the tankless water heater. We receive many requests for information about this efficient alternative to normal water heating and it is one of the tax credit approved water heaters on the market. Tankless water heaters heat water as it is needed and do not store hot water when it is not in demand. These water heaters can supply unlimited hot water and make more sense than storing gallons of water that may not be needed for hours. Most people in this country have heard of tankless water heaters but do not realize that almost every home in other countries use one of these compact efficient sources for domestic water heating. The tankless water heater lasts many more years than a normal heater and one never has to worry about a leak flooding a home like a normal tanked heater. This is the primary reason many people install a tankless water heater.
There are also electric water heaters that are extremely efficient and will earn the tax credit while providing much greater capacity and lifespan than a normal water heater. These fiberglass heaters carry a lifetime tank warranty and will never cause a flood in a home just as in the tankless variety. If you have ever had a water heater rupture, you understand how important this is.
Don’t let the tax credit expire this time without taking advantage of it.