Tax Incentives Extended for 2012 and 2013!

7 01 2013

When the “fiscal cliff bill” passed on January 1, 2013 it extended the energy tax credits.  The extension is retroactive for 2012.  Meaning all qualifying home improvements done in 2012 will qualify for a tax credit now.  The extension is set to last through 2013.

An eligible taxpayer (homeowner) may claim a tax credit for 10% of installed costs of a variety of qualified energy efficient improvements to their home including: HVAC, insulation, roof, windows and doors, or hot water equipment.  While the amount a homeowner may claim for all qualified improvements is capped at $500, the amount for each improvement is subject to individual caps.  For HVAC, the individual tax cap for heat pump or air conditioner is $300, for a furnace the cap is $150, and for an advanced circulating fan the cap is $50.  There are minimum efficiency requirements that must be met in order to qualify.  You can give us a call to find out if your system qualifies or if you are interested in taking advantage of this tax credit by replacing your old heating and cooling system.

There is a lifetime residential energy tax credit limit of $500, going back to January 1, 2005.  Meaning that if you have already taken a energy tax credit for $400 then you only have $100 left to take.  The IRS will soon release information instructing taxpayers on how to file a claim.  Assuming the requirements are similar to the past, you will need to file a Form 5695 when you submit your taxes.  Your tax preparer should be able to provide more information.


Why Use a Company Whose Owner Puts Thier Name On It

21 11 2012

This is a follow-up post to answer some questions I received concerning a comment I made a few days ago.  I commented that it was a good idea to use a heating and air conditioning company whose owner was proud enough of the service they provide to put their name on the company.  So, what does that mean.  Well in our industry new companies pop up every year.  In fact, just look at your phone books from one year to the next and you will see different ads from one year to the next.  People start new service companies and either they fail or they have such a bad reputation that they shut down and start back under a new name.  Someone who puts their own name out there and stakes the reputation of their company on their name can’t hide.  They get one shot to do it right.  A company owner who really wants to succeed and provide great service is also willing to stake their name on it.  Having worked in the heating and air conditioning service industry for decades, I have come to the conclusion that if their name is on it, then you are probably better off.  But, there are exceptions, so always do your research and check their Better Business Bureau ratings and ask for references (ask for 100 as anyone can provide 3 to 4).

By the way, I always encourage people to check the Better Business Bureau ratings for a company.  The Better Business Bureau is the only ratings service that actually verifies and concludes every complaint.  There is no other source of verified reviews for a company available on the internet.  Trust me, I have seen companies post fictious reviews about other companies on the internet.  And, you would think that a company could get those reviews removed, you would be wrong.  So, lesson is use the BBB and don’t believe everything you read on the internet.  More often than not, it is misleading.