Congress, Retroactively Extends HVAC and Water Heating 25C Tax Credits; On January 2, President Obama signed legislation designed to avoid the “fiscal cliff” and keep tax rates from increasing for every American who pays taxes. In addition to its many other tax provisions, the bill retroactively reinstates the 25C tax credits for highly efficient HVAC and water heating equipment that expired at the end of 2011.Specifically, the bill extends the tax credits that expired in 2011 from January 1, 2012, until December 31, 2013, for qualified equipment listed in Section 25C of the Internal Revenue Code. Because the credits were made retroactive to January 1, 2012, they can be used for qualified equipment that was installed any time after December 31, 2011.Qualified equipment includes:

Air Conditioners and Heat Pumps ($300 Tax Credit) -Split system central air conditioner that achieves the highest efficiencyCEE tier as of January 1, 2009 (16 SEER; 13 EER)-Split system electric heat pump that achieves the highest efficiency CEE tier as of January 1, 2009 (8.5 HSPF; 12.5 EER; 15 SEER)

This $300 tax credit would be in addition to any other rebates or incentives offered by your utility company!!


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