Did you know that aside from the different benefits that your air conditioner gives you, installing a new one can provide taxpayers with a potential tax credit? We all know that air conditioners provide a more relaxed and comfortable environment through its cooling system and it also has various health benefits by providing purified air to its consumers. But by installing the appropriate energy efficient air conditioning system, you can qualify for an extension of tax credits. These tax credits can be claimed by taxpayers when they file their federal tax income. But what are the different criteria that can help you qualify for a tax credit?
You should see to it that the air conditioning system that you will install meets certain manufacturer’s standards to qualify for a tax credit. A central air-conditioning system must meet or exceed 16 SEER (Seasonal Energy Efficiency Ratio) or 13 EER (Energy Efficiency Ratio). The higher the unit’s SEER rating the more energy efficient it is. The taxpayer should check the manufacturer’s standards before buying the unit. He should verify if the standards are met to qualify for the tax credit.
The taxpayer should be aware that only air conditioning system installed in the primary residence can qualify for the tax credit. Air conditioners installed in rental properties and commercial buildings are not entitled to the credit. The renter cannot claim the tax credit as well. They can only claim the credit in the homes where they live in the longest during the tax year.
If you want the claim the credit, you have to install the air conditioning system during the appropriate tax year. An air-conditioning system installed in 2011 is qualified only for a tax credit on a 2011 federal tax return. If it was installed before that year, then the tax credit cannot be claimed for the 2011 tax return.
Money is very difficult to come by nowadays. We should do everything we can to save money. We should look at all the possible things that we can do to cut back on our expenses and taxes. As simple as installing the right energy efficient air conditioning unit can help you save money.