It's not too early to be thinking about your 2013 taxes. After all, the actions you take this year affect the tax bill you'll have to pay next spring. One of the ways you can reduce your tax obligations come tax day is to take advantage of the federal energy tax credits. If you've been thinking about upgrading your air conditioning system, it makes sense to act this year.
About the federal energy tax credits
The federal energy tax incentives allow homeowners who install a qualified central air conditioning system or air source heat pump to claim up to $300 of the cost of materials and installation. The system must be purchased and installed by Dec. 31, 2013, though the credit also applies to cooling systems purchased in 2012. The credit only applies to existing, primary residences. Rental properties and vacation homes aren't covered under this program. New homes are also excluded.
Claiming the tax credit is easy. You simply complete IRS form 5695 and submit it with your federal tax return. The tax credits are deducted from your tax obligation or added to your return.
Qualifying A/C systems
Not every central air conditioning system or heat pump qualifies for the tax credit. To qualify, an air conditioning system or heat pump must have a Seasonal Energy Efficiency Ratio (SEER) of at least 16. The government minimum SEER is 13, so the credit does cover a lot of the cooling systems on the market.
Tips for choosing a new A/C system
If you've decided to take advantage of the tax credits and buy a new A/C, keep these things in mind when shopping:
1. Buy the right size. Many homes have A/C systems that are too big for the size of the house. This causes the A/C to use more energy than necessary, and provides uneven cooling and inadequate humidity control. An A/C that's too small will struggle to cool your home on the hottest days.
2. Choose a system for your climate. Some A/C systems handle moisture better than others. In Indiana's muggy climate, you'll want an A/C that can control indoor humidity.
If you'd like to see how installing a new air conditioning system in your Fort Wayne area home can save you on your 2013 taxes, please contact us at Hartman Brothers Heating & Air Conditioning. We've been helping area homeowners with their heating and cooling needs since 1963.
Our goal is to help educate our customers in New Haven, Indiana and surrounding Fort Wayne area about energy and home comfort issues (specific to HVAC systems). For more information about tax credits and other HVAC topics, download our free Home Comfort Resource guide.
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