Tell Your Customers: Consumer Tax Credit Extended
Malta, NY, January 9, 2013 - We know home
performance can be a tough sell. But thanks to Congress' last-minute deal to
avert the "fiscal cliff," a $500 tax credit for your customers will
make it just a bit easier for you to make your own deal. Take a moment to
educate your customers on the importance of these upgrades, and the limited
time in which they have to redeem the tax credit. This is an opportunity for
you to grow your relationship with your customers, and for your customers to
save money on improvements that will make their homes safer and more
comfortable places to live.
The American Taxpayer Relief
Act of 2012 passed by Congress on January 3, 2013, provides extensions of
energy tax credit provisions that benefit homeowners seeking energy-efficiency
improvements. Under section 25C, homeowners can claim a $500 maximum tax credit
to cover material costs of energy-efficient upgrades to existing homes for all
taxable years. The credit is only redeemable if the upgrades are in place by
the end of 2013.
If a taxpayer has claimed $500
or more of this tax credit in any year prior to 2013, they may not claim any
additional credit. For those that remain eligible, the tax credit can be
applied to any of the following upgrades:
- Insulation - Additional insulation to
walls, ceilings, or other part of the building envelope that meets the
2009 IECC (& supplements) specifications.
- Windows - 10% of material cost, up to $200
for replacement windows and skylights, and exterior doors that
meet EnergyStar requirements.
- Windows must
be equal to or below a 0.30 U factor and a Solar Heat Gain
Coefficient (SHGC) of 0.30. Storm windows that meet the
IECC in combination with their paired external window are eligible
(taking into account the applicable climate zone). Storm doors paired
with U-factor rated wood doors are eligible provided they do not exceed
the default U-factor requirement for the combination. See the 2009 IECC
for details.
- Window Films -The product must meet the
requirements of a "qualifying insulation system" and be
manufacturer certified.
- Home Sealing - Sealing cracks in the building
shell and ducts to reduce infiltration and heat loss in a manner
consistent with the 2009 IECC.
- Electric Heat Pump - Must yield
an energy factor of at least 2.0 in the standard Department of
Energy test procedure,
- Natural Gas & Propane Furnaces - Credit of
up to $150 for furnaces that meet an Annual Fuel Use Efficiency (AFUE) 95
or higher. Oil furnaces and gas, oil and propane boilers must meet an AFUE
of 90 or better.
- Central air Conditioning Units and Air-Source Heat Pumps - Credit of
up to $300 for units that meet the highest tier standards set by the
Consortium for Energy Efficiency (CEE) as of February 17, 2009, which in
most cases requires a Seasonal Energy Efficiency Ratio (SEER) of 16.
- Natural Gas, Propane, or Oil Water Heaters - Must have an
energy factor of at least 0.82 or thermal efficiency of at least 90
percent.
- Biomass Fuel Property - A stove
that burns biomass fuel to heat a dwelling unit located in the United
States and used as a principal residence by the taxpayer; or to heat water
for said dwelling unit, and must have a thermal efficiency rating of at
least 75 percent.
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