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2013 Tax Credit For Replacing Your AC, Furnace, or Water Heater

2013 Tax Credit For Replacing Your AC, Furnace, or Water Heater

If you are like me and had to replace a furnace in 2013, or replaced an air conditioner or even put in a new water heater, you may be eligible to get a tax credit on your 2013 taxes that you will be filing before April. 2013 was the last year you could claim these energy efficiency saving deductions, but they are a way to get up to 500 dollars back from the government.

In early December right in the middle of the cold snap that covered the country we had a furnace go out. Yep, Christmas shopping was curtailed as we had the lovely opportunity to spend nearly two thousand dollars, top market pricing, on a new furnace. It was painful, but we will end up getting a $150 credit on on 2013 taxes. That takes a little of the sting out of it. It would have been more painful now that I realize it if the furnace had gone out in January of this year. The credit has now expired. 

Here are the things you need to know to get a tax credit if you replaced a furnace, air conditioning unit, or a water heater in 2013.

Heating, Cooling and Water-Heating Equipment

  • Taxpayers who purchase qualified residential energy-efficient property may eligible for a tax credit. The credit is equal to the full cost of the equipment up to the following caps:
  • Advanced main air circulating fan: $50
  • Natural gas, propane, or oil furnace or hot water boiler with an annual fuel utilization rate of 95 or greater: $150
  • Electric heat pump water heater with an energy factor of at least 2.0: $300
  • Electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency: $300
  • Central air conditioner which achieves the highest efficiency tier established by the Consortium for Energy Efficiency: $300
  • Natural gas, propane, or oil water heater which has either an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent: $300
  • Biomass stoves that use “plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers”: $300

IRS Form 5695 & Instructions: Residential Energy Credits

One comment

  1. This is a good list. I was able to take advantage of one of these last year.

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