Part of fiscal cliff deal offers tax credit - KCTV5

Part of fiscal cliff deal offers tax credit for installing new furnace, A/C

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As confusing as the fiscal cliff was, so was the deal that prevented us from going over it.

There's a possible tax credit that came out of the deal that many may qualify for, but not know about.

Sue Willman likes to show off the latest investment she's made in her Overland Park, KS, home: a new furnace installed by Anthony Plumbing and Heating. Willman spent about $7,000 on a brand new high efficiency furnace and air-conditioner.

She was pleasantly surprised to learn she'll be getting some of that money back, thanks to the deal to avert the so-called fiscal cliff.

"When they called to tell me I thought, ‘This is great, this is a bonus.' We didn't have a new furnace and air-conditioner put in because of the tax credit, but it's nice to know we can save some extra dollars that way," Willman said.

Ironically, the deal that was supposed to raise taxes is also loaded with tax breaks.

"I don't know if it surprises me or not. I don't know if anything Congress does surprises me," Willman said.

The deal also includes breaks for homeowners who've recently purchased new high-efficiency heating and cooling systems.

According to a breakdown from the Air Conditioning Contractors of America, homeowners can expect $150 back for a new furnace or boiler, $300 for an air-conditioner and $50 for an advanced main air-circulating fan, with a total refund topping out at $500.

Even though it's just a fraction of Willman's $7,000 investment, she said she knows every dollar helps.

"Add that to the high energy efficiency of these units and the savings on utilities, and that's pretty nice," she said.

Now Willman doesn't mind quite as much when she has to crank up the heater on a cold night.

The tax credit is retroactive to last January, so if you had the qualifying work done during any of 2012, you should be eligible for the credit.

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