Energy efficiency tax creditHow do I get started? Which systems qualify?
WHAT IS A FEDERAL ENERGY TAX CREDIT?
2020 Update - Further Consolidated Appropriations Act
The Further Consolidated Appropriations Act, 2020 amended Internal Revenue Code section 25C, which provides a tax credit for the purchase and installation of Qualified Energy Property, which includes residential heating and cooling equipment meeting certain energy efficiency requirements. There are several important requirements and limitations homeowners must meet to qualify for the section 25C tax credit, such as the Qualified Energy Property must be installed in the homeowner’s primary residence. American Standard recommends that homeowners consult a qualified tax professional to ensure they meet all requirements.
Tax Payer Relief Act of 2012
As part of the recently passed American Tax Payer Relief Act of 2012, Congress modified and extended its energy efficiency tax credits for appliances, new homes and retrofits to existing homes, which includes the 25C heating and cooling equipment tax incentive for 2012 through 2016. Thanks to the federal legislation retroactively extending previously available tax credits, homeowners may be eligible for a tax credit if they purchase certain types of heating, ventilation and air conditioning (HVAC) systems, water heating equipment, or make other energy-related improvements to their homes between January 1, 2012 and December 31, 2017. The new legislation extends the cumulative cap of a $500* maximum tax credit.
Energy Improvement and Extension Act of 2008 (H.R. 1424)
Geothermal tax credits are also available for home owners who install geothermal heating and cooling systems through the Energy Improvement and Extension Act of 2008 (H.R. 1424). H.R. 1424 offers a onetime tax credit of 30% of the total investment for homeowners who install residential ground loop or ground water geothermal heat pumps that meet or exceed ENERGY STAR requirements and are installed after December 31, 2007. The tax credit is available through December 31, 2016. Consult your local tax professional for advice on taking advantage of this tax credit.HOW DO I APPLY FOR A TAX CREDIT?
For qualified HVAC improvements, homeowners may be able to claim 25C tax credits equal to 10 percent of the installed costs (up to $500 maximum*). The extended tax credit is in effect for all qualifying systems and products installed during the 2012 through 2016 calendar years and expires on December 31, 2016. For qualified geothermal improvements, homeowners may be able to claim HR 1424 tax credits equal to 30% of the total installed cost. Subject to IRS regulations, tax credits apply as a direct reduction of taxes owed. The IRS has directed taxpayers to use Form 5695 to calculate and file for their residential energy credits. Customers should consult with a tax professional to fully understand how the tax credits may apply to you, what you can do to obtain one, and for advice on tax preparation.HOW DO I LEARN MORE ABOUT AMERICAN STANDARD'S ENERGY EFFICIENT SOLUTIONS?
American Standard is committed to meeting the needs of homeowners in a very dynamic environment and offers many products under this new law. Depending on the type of system or product purchased, it may be possible to qualify for a 25C tax credit of up to $500* on your income tax return. IRS form 5695 will need to be filed with your return. To find a dealer near you, click here. *Maximum 25C tax credit amount is $500 and is available for respective products in the following amounts: $300 maximum for a qualifying air conditioning system, heat pump or packaged system, $150 maximum for a qualifying furnace, and $50 maximum for a qualifying product with an advanced circulating fan. The tax credit is effective for all qualified systems installed from 1/1/2012 through 12/31/2016, and is only valid to taxpayers that own their home and use it as their principal residence.The following American Standard residential products qualify for a federal tax credit:
- Split system air conditioning - must meet 25C requirements of 16 SEER/13 EER (both efficiency levels must be met to qualify for the tax credit) Manufacturer's Certificate
- Split system heat pump - must meet 25C requirements of 15 SEER/12.5 EER/8.5 HSPF (all three efficiency levels must be met to qualify for the tax credit) Manufacturer's Certificate
- Gas furnace - must meet 25C requirements of 95% AFUE Manufacturer's Certificate
- Advanced main air circulating fan - gas furnace or packaged system with an advanced circulating fan that utilizes no more than 2% of furnace total energy use per 25c requirements. Manufacturer's Certificate
- Packaged air conditioning, heat pump or dual fuel products - must meet 25C requirements of 14 SEER, 12 EER, 8 HSPF Manufacturer's Certificate
Find out what specific products are eligible by visiting individual product pages on the site, or by visiting our Special Offers page and clicking "EcoRebates" tab. In addition, you'll find the government's summary of Energy Star products that are eligible for HVAC credits at www.energystar.gov/taxcredit. As always, you can also contact your local independent American Standard Heating & Air Conditioning Dealer who can help you determine product model numbers if necessary.
FIND TAX CREDIT ELIGIBLE EQUIPMENT (Click on the EcoRebates tab for listings.)