2012 Federal Tax Credits For Energy Efficient Furnaces & Water Heaters
If your home's old furnace or water heater are in need of replacement, replacing them with new, energy efficient units can save you money every day through the winter. Iowa area residents can also save money on the purchase cost of new systems by taking advantage of 2012 Federal Tax Credits on new, energy efficient home furnaces and water heaters. The rebates vary depending on the type and efficiency of the unit, but can cover 10% of cost up to $500 or a specific amount from $50 - $300.
To quality for these savings you must purchase your new furnace or water heater before December 31, 2012. For more information on federal energy tax credits for new, energy efficient furnaces, visit:http://www.energystar.gov/index.cfm?c=tax_credits.tx_index.
2012 Changes to Federal Tax Credits
Federal tax credits on qualifying, high-efficiency HVAC equipment have been modified and extended through December 31, 2012 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This program differs from the program effective in 2009-2010 in the following ways:
The maximum amount an eligible homeowner may receive in tax credits for purchasing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, will be reduced from $1,500 to $500.
The $500 cap is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2010. If you have already claimed credits of $500 or more from improvements made prior to 2012, you will be unable to claim new credits for improvements made during 2012.
All furnaces and boilers, whether natural gas, propane or oil, must have an AFUE of 95 or above to be eligible for the credit.
The credit is no longer 30% of qualified residential energy property costs (including labor), but is now equal to an amount not to exceed:
The State of Iowa is not offering energy efficiency rebates for home heating or water heaters at this time.
ENERGY STAR® Rated Home Heating Systems
Natural gas, propane and oil furnace style home furnaces can qualify with an AFUE greater or equal to 95. AFUE. AFUE stand for Annual Fuel Utilization Efficiency. Indicated as a percentage, your furnace's AFUE tells you how much energy is being converted to heat. For example, an AFUE of 90 means that 90% of the fuel is being used to warm your home, while the other 10% escapes as exhaust with the combustion gases.
ENERGY STAR® Rated Water Heaters
With water heating accounting for 14%–25% of the energy consumed in the average Des Moines area home, choosing an efficient model can have a significant impact on your energy costs. Gas, oil, propane and electric heat pump water heaters with an Energy Factor greater or equal to 0.82 OR a thermal efficiency of at least 90% can quality for a $300 tax credit.
Remember, the most important day in the life of your furnace or water heater is the day it's installed. Your Golden Rule Home Comfort Specialist will help you choose right energy efficient furnace or water heater for your family's needs and budget. With a profesional installation and the Golden Rule Guarantee, you will be comfortable in knowing that your new furnace or water heater will provide years of efficient, trouble free service.