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Federal Tax Credits Are Back And Retroactive To 2012

On January 2, President Obama signed legislation designed to avoid the “fiscal cliff” and keep tax rates from increasing for every American who pays taxes. In addition to its many other tax provisions, the bill retroactively reinstates the 25C tax credits for highly efficient HVAC and water heating equipment that expired at the end of 2011.

Specifically, the bill extends the tax credits that expired in 2011 from January 1, 2012, until December 31, 2013, for qualified equipment listed in Section 25C of the Internal Revenue Code. Because the credits were made retroactive to January 1, 2012, they can be used for qualified equipment that was installed any time after December 31, 2011. Qualified equipment includes:

Water Heaters ($300 Tax Credit)


Furnaces ($150 Tax Credit)


Boilers ($150 Tax Credit)

Air Conditioners and Heat Pumps ($300 Tax Credit)

Advanced Main Air Circulating Fan ($50 Tax Credit)

Here is a link to the AHRI announcement: Click Here

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