Tax Credits Return

IRS 1040 Tax Form Being Filled Out

Picture provided by http://www.seniorliving.org.

Many tax incentives were extended through the American Taxpayer Relief Act of 2012 – also known as the “fiscal cliff bill” – which Congress passed on January 1, 2013.  The most important change may be the retroactive reinstating of the 25C Residential Energy-Efficiency Tax Credit from January 1, 2012 to December 31, 2013.

If you had a high-efficiency heating and air conditioning system or water heater installed in 2012, or plan to purchase qualifying equipment in 2013, you may be eligible for a tax credit of up to $500.

There may never be a better time to install new or replacement equipment.  Consider contacting your local heating and cooling contractor to see if you qualify for the new credits or the retroactive credits.