Tax Credits

Post revision Nov. 2019

Current tax credits are:

A maximum credit of $50 for certain main air circulating fans.

$150 for a qualifying furnace, AC or boilers.

Please contact us with any questions.

The American Taxpayer Relief Act 0f 2012 has extended the tax credits that expired in 2012. This is for equipment that was installed anytime after December 31, 2012, and is listed in section 25C of the Internal Revenue Code.

According to AHRI, qualified equipment includes:

Product Type Tax Credit Minimum Efficiency Requirements
$150 Natural Gas, Propane, or oil with an AFUE of not less than 95%
AC and HP $300 Split system
central air conditioners that achieve 16 SEER and 13 EER;
Packaged central air conditioners that achieve 14 SEER and 12 EER; Split system electric heat pumps that achieve 8.5 HSPF, 12.5 EER and 15 SEER; Package electric heat pumps that achieve 8.0 HSPF, 12 EER, and 14 SEER.
Advanced Main Air Circulating Fan $50 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.
Water Heaters Electric heat pump water heaters with energy factors of at least 2.0; and Natural gas, propane, or oil water heaters with energy factors of at least 0.82 or thermal efficiencies of at least 90 percent.

IRS OFFERS TAX CREDITS FOR 2014 WHEN  new air conditioners heat pumps and furnaces are installed that meet the new federal guidelines. A tax credit is different than a tax deduction in that it reduces taxes dollar for dollar. A tax deduction on the other hand only removes a percentage of tax that is owed. Call Denmark Heating and Cooling and we will show you how to maximize these tax savings. For more on tax credits

Please note, not all ENERGY STAR qualified products to qualify for a tax credit. These tax credits are available for a number of products at the highest efficiency levels, which typically cost much more than standard products. If for whatever reason, you decide not to purchase a product covered by the tax credit, you may still consider purchasing an ENERGY STAR product. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.


Denmark Heating And Cooling would like to remind homeowners about the reinstatement of federal tax credits available on home improvements made in 2013 and 20014. Tax credits for residential products, which had expired at the end of 2012, are now available for improvements made during 2014 by way of the Economic Stabilization Act of 2008.
According to Energy Star®, replacing old heating and cooling equipment with Energy Star-rated equipment can reduce the average homeowner’s annual energy costs by $200 or more. When paired with a cumulative tax credit of 30 percent of the installed cost, up to $1,500, this creates an opportunity for homeowners to realize significant savings in 2014 and beyond.

Ultra high-efficiency products such as the new Bryant 18 SEER Condensing unit or the 17 SEER Heat Pump not only provide homeowners a tax credit, but also slash home energy consumption by improving the overall efficiency of your heating and cooling system.

For more details on the tax credit available on Heating and Cooling products, please visit