ATLANTA FURNACE TAX CREDIT AVAILABLE
The American Taxpayer Relief Act of 2012 was enacted January 2, 2013 and is now available through 2013 for the tax credit of residential energy property expenditures, such as installing a new furnace.
This tax relief was originally provided for under the Energy Tax Incentives Act of 2005. The residential energy credit expired at the end of 2011, but now has been retroactively reinstated and extended to include energy improvements for 2012 and 2013. The Act provides for a tax credit of up to $150 for the installation of a natural gas, propane, or oil furnace. There is a $500 lifetime limit for the credit–meaning that you won’t be able to claim the credit if you claimed the maximum credit in a prior tax year. Visit www.irs.gov and see IRS Form 5695, Residential Energy Credits, for more information.
In addition to the tax credit, you may also be able to save money on the installation of your furnace with a rebate offered by your utility company or local government. Rebates can often provide incentives of up to a few hundred dollars per installation.
When applying for an energy rebate, consider the following:
• Energy rebates usually require the product to be ENERGY STAR certified
• The amount of the rebate may hinge on the energy efficiency of the product (e.g., a furnace that has a higher efficiency will be eligible for a larger rebate)
• The rebate may only be available for products that have been installed by a certified contractor
• You may have to apply for the rebate within a certain time period after the installation of your energy-saving product
• You can visit www.energy.gov for more information.
By installing a more energy-efficient furnace, you can save money on your heating expenses over the long run. According to the U.S. Department of Energy, installing a higher-efficiency heating system along with making energy-efficient upgrades can result in cutting your winter home heating costs in half.