The Fiscal Cliff legislation released a tax credit for the installation of high efficiency residential air conditioning and heating equipment.

The reinstatement of what was known as the 2SC tax credit provides for up to $500 in homeowner tax credit. As a bonus, the provision was made retroactive to include all qualifying installations starting January 1, 2012 as well as moving forward into 2013. Qualifying installations must meet these minimum standards.

Furnaces ($150 Tax Credit)

  • Natural gas, propane, or oil furnace with an AFUE of not less than 95%

Boilers ($150 Tax Credit)

  • Natural gas, propane, or oil boiler with an AFUE of not less than 95%

Air Conditioners and Heat Pumps ($300 Tax Credit)

  • Split system central air conditioner that achieves the highest efficiency CEE tier as of January 1, 2009 (16 SEER; 13 EER)
  • ackaged central air conditioner that achieves the highest efficiency CEE tier as of January 1, 2009 (14 SEER; 12 EER)
  • Split system electric heat pump that achieves the highest efficiency CEE tier as of January 1, 2009 (8.5 HSPF; 12.5 EER; 15 SEER)
  • Packaged electric heat pump that achieves the highest efficiency CEE tier as of January 1, 2009 (8.0 HSPF; 12.0 EER; 14 SEER)

Advanced Main Air Circulating Fan ($50 Tax Credit)

  • A fan used in a natural gas, propane, or oil furnace with an annual electricity use of no more than 2 percent of the total energy use of the furnace.