With tax season fresh in our minds, many Arizona residents are wondering about the newest tax savings program recently announced by the American Tax Payer Relief Act. In this new law, the United States Federal Government agreed to offer tax incentives to home owners who install energy efficient appliances in new homes, or to retrofit older properties that are their primary residents. One of the most common appliances receiving this tax credit is Trane AC units that are all Energy Star® rated.
However, the question that many Phoenix and Scottsdale residents is whether or not the Trane AC Units that are sold today are energy efficient enough in order to qualify for this US Federal Government Tax Credit for the 2012 or 2013 tax years. The simple answer to this question is yes. However, there are restrictions you should be aware of prior to buying any new Trane AC Unit to be certain you can qualify for this tax credit.
AC Unit Tax Credit Restrictions & Qualifications
The tax credit was established to provide American citizens with a tax credits to purchase Energy Star® rated appliances that will reduce energy usage and protect the environment. However, the following restrictions are applicable:
- You must reside in the residence where the major appliance was installed as a primary residence.
- You must buy the appliance between January 1st 2012 and December 31, 2013.
- There is a maximum tax credit of $500 per household.
The Following Type of Trane Units Qualify for this Tax Credit
- Split system air conditioning – these units must meet US Federal 25C requirements of 16 SEER/13 EER (both efficiency levels must be met to qualify for the tax credit)
- Split system heat pump – these units must meet the 25C requirement of 15 SEER/12.5 EER/8.5 HSPF (in this case, each of the three efficiency levels must be met to qualify for tax credit for the tax year you purchase the item)
- Packaged air conditioning, heat pump or dual fuel products – that meet 25C requirements of 14 SEER, 12 EER, 8 HSPF (In this case, the unit must meet one of these requirements posted above and not all as the two above units require)
There are some resources you can research to explain this tax credit in more detail
The one thing that is important to remember is that there are loop holes in every US Government program and restrictions that need to be met in order to qualify. Although replacing any air conditioning unit that is Energy Star® rated is a smart financial decision – due to the monthly energy savings these units provide each month, you’ll want to check the fine print from the US Federal Government to ensure you qualify for this tax savings.
The US Federal Government has been kind enough to provide a detailed list of Energy Star® rated products that are all eligible for HVAC credit on their website. Another great source of information is to simply contact Scottsdale Air (Independent Trane HVAC dealer in Scottsdale) who will be happy to discuss all options to meet your individual requirements and receive the tax credit if you so choose.