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Energy Tax Extenders

 Energy Tax Extenders 

Tax Credits Extended for Energy Efficient Natural Gas Appliances and Natural Gas Vehicle Programs - Included in the energy tax extenders portion (Title IV) of the American Tax Payer Relief Act of 2012 that was signed into law, are tax extensions for high efficiency natural gas furnaces, boilers and water heaters; natural gas refueling infrastructure; and natural gas sold as a transportation fuel. The tax credits are extended through 2013 and the credits were made retroactive from when they expired on December 31, 2011. Specifically, the tax extensions include:

  • Nonbusiness Energy Property Credit (section 25C of the tax code) – This is a credit up to $500 for home energy efficiency retrofits that helps consumers afford efficiency upgrades, including water heaters, boilers and furnaces. Natural gas appliances that are qualified to receive a credit include:

o Boilers - $150 tax credit for a natural gas, propane, or oil boiler with an AFUE of not less than 95.

o Furnaces - $150 tax credit for a natural gas, propane, or oil furnace with an AFUE of not less than 95.

o Water heaters - $300 tax credit for a natural gas, propane, or oil water heater with an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent.

  • Infrastructure Credit (section 30C of the tax code). Extends the tax credit for the installation of alternative fuel vehicle refueling property (current limits set at 30 percent of the cost of installation up to a maximum of $30,000).
  • Alternative Fuels Excise Credit (section 6426 of the tax code): Extends the $.50 a gallon credit for alternative fuel (including natural gas) used as a motor fuel.

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