Advanced Services stays up-to-date and informed on any federal and state tax incentives that are available for our customers. To assure that the information contained on this website and page are up-to-date, contact us today.
The Tax Increase Prevention Act of 2015 extends the 25C tax credits that expired on December 31, 2014. This includes higher efficiency heating and cooling systems, such as central air conditioners, furnaces, heat pumps and packaged systems. These credits are only available for improvements made between January 1, 2015 and December 31, 2016.
An eligible tax payer may claim up to $500 in tax credits, subject to caps based on the type of equipment installed.
For the advanced main air circulating fan credit, the fan must use no more than 2% of the furnace's total energy. If the fan is qualified, but the furnace is not, you will not be able to take 10% off the cost of the entire furnace. Ask your dealer to break out the cost of the fan in your invoice. You can get a 10% tax credit (up to $50) on the cost of the fan alone. If the furnace is qualified, but the fan is not, you can still take the 10% tax credit on the full cost of the furnace.
If you have taken more than $500 in 25c tax credits since January 1, 2005, you are ineligible for any further credits. Please consult your tax advisor for full details.
Now is a great time to consider purchasing a heat pump instead of an air conditioner. Heat pumps work just like an air conditioner in the summer, but also provide heat in the winter. You can pair a heat pump with a gas furnace, and run the heat pump in mild weather and the furnace in colder temperatures, saving you money on your winter utility bills. And because many heat pump models qualify for the federal tax credit, you'll get a wider range of choices and price ranges than with an air conditioner. Advanced Services can help you select the right system for your home.
To learn more about the current Federal Tax Credits, click here.