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02_28_13HVAC upgrades in Dallas has become even easier now that the widely trumpeted “Fiscal Cliff” deal, otherwise known as the American Taxpayer Relief Act, has been approved. The act has restored the 25C tax credits, that can be applied to the individual income taxes of homeowners who purchase and install certain types of qualified high-efficiency home HVAC upgrades.

The 25C tax credits vary based on the type of HVAC upgrades involved, up to a total of $500. The credits are retroactive for 2012 and are valid throughout 2013. They apply to new equipment installations or HVAC upgrades at a principal place of residence. If you have already taken energy tax credits since January 1, 2005, the 25C credits cannot be applied.

Here are some explanations of the tax credits that are available to consumers:

$50 credit:

Advanced main air circulating furnace fan that annually uses no more than 2 percent of the total energy used by the furnace.

$150 credit:

Natural gas, propane, or oil furnace or hot-water boiler of Annual Fuel Efficiency (AFUE) 95 or higher.

$300 credit:

  • High-efficiency electric heat pump with a minimum 15 Seasonal Energy Efficiency Ratio (SEER), 12.5 Energy Efficiency Rating (EER) and 8.5 Heating Seasonal Performance Factor (HSPF) for air-source heat pumps, and 14 SEER, 12 EER and 8 HSPF for packaged heat pump systems.
  • High-efficiency central air conditioner with a minimum 16 SEER and 13 EER for split-system central air conditioners and 14 SEER and 12 EER for package-system central air conditioners.
  • Natural gas, propane or oil water heater with a minimum energy factor of 0.82 or a minimum thermal efficiency of 90 percent.
  • Electric heat pump water heater with a minimum energy factor of 2.0.

Homeowners with eligible HVAC upgrades can claim the 25C tax credits by filling out Form 5695, Residential Energy Credits, and including it with their standard income tax form. Contact your tax preparation professional for more specific guidance on claiming 25C credits.

Crawford Services, Inc. is a professional heating, air conditioning and plumbing services provider for Dallas and communities throughout North Texas. Contact us today for more information on HVAC upgrades in Dallas and what the restored 25C tax credits mean for energy efficiency and monetary savings.

Our goal is to help educate our customers in North Texas about energy and home comfort issues (specific to HVAC systems).

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