Your New System Purchase Could Get You Up To $500 In Federal Tax Credits
The American Taxpayer Relief Act of 2012 passed in January 2013 retroactively extends tax credits for homeowners replacing heating and cooling equipment for their primary residence with qualifying, high-efficiency products. Tax credits, unlike deductions, are subtracted directly from your personal income tax liability. For example, if you complete your tax return and calculate that your tax liability is $2,000, a tax credit of $500 may reduce your tax liability to only $1,500. Be sure to check with your tax advisor to determine eligibility for and how to best take advantage of the tax credits.
Here's How It Works
Product purchase must be for your principal residence and be "placed in service" between January 1, 2012 and December 31, 2013. According to the IRS "placed in service" means when the original installation of the product is completed.
System components must meet efficiency levels set by the Federal government. Note that NOT all ENERGY STAR® qualified products are eligible