By: Brian Schutt
As Federal Bill’s seemed to be these days, the last-minute deal to avert the “fiscal cliff” didn’t escape the reach of special interests. For once some of the things thrown in might benefit consumers or at least balance out the increase in social security tax. Enough of my editorializing though, let’s get down to the facts.
While tax credits had ended at the end of 2011, this deal included a retroactive and forward component that allows high-efficiency systems installed in 2012 and 2013 eligible to receive the same credit available in 2011. Unfortunately, it’s not the $1500 that was available before 2011, but it does allow for up to $500 in credits.
The specifics related to heating and cooling are capped at the following:
- Advanced main air circulating fan: $50
- Natural gas, propane, or oil furnace or hot water boiler with an annual fuel utilization rate of 95 or greater: $150
- Electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency: $300
- Central air conditioner which achieves the highest efficiency tier established by the Consortium for Energy Efficiency: $300
- Natural gas, propane, or oil water heater which has either an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent: $300
- Biomass stoves that use “plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers”: $300
As the specifics are still being figured out, we’ll be here to provide more detail. If you have any questions about high-efficiency systems, please call us today.