AMERICAN TAX PAYER RELIEF ACT OF 2012 As a part of the recently passed American Tax Payer Relief Act of 2012, Congress modified and extended its energy efficiency tax credits for appliances, new homes and retrofits to existing homes, which includes the 25C heating and cooling equipment tax incentive for 2012Thanks to the federal legislation retroactively extending previously available tax credits, homeowners may be eligible for a tax credit if they purchase or purchased certain types of heating, ventilation and air conditioning (HVAC) systems, water heating equipment, or make other energy-related improvements to their homes between January 1, 2012 and December 31, 2016. legislation extends the cumulative cap of a $500* maximum tax credit. As a leader in producing energy-efficient home comfort solutions, Trane offers many products that are eligible under this new law. Depending on the type of system or product purchased, it may be

possible to qualify for a 25C tax credit of up to $500* on your incomeIRS form 5695 will need to be filed with your return. ENERGY IMPROVEMENT AND EXTENSION ACT OF 2008 (H.R. 1424) Geothermal tax credits are also available for home owners who install geothermal heating and cooling systems through the Energy Improvement and Extension Act of 2008 (H.R. 1424). H.R. 1424 offers a onetime tax credit of 30% of the total investment for homeowners who install residential ground loop or ground water geothermal heat pumps that meet or exceed Energy Star requirements and are installed afterThe tax credit is available through December 31, 2016. Consult your local tax professional for advice on taking advantage of this tax credit. HOW DO I APPLY FOR A TAX CREDIT? For qualified HVAC improvements, homeowners may be able to claim 25C tax credits equal to 10 percent of the installed costs (up to $500The extended tax credit is in effect for all qualifying

systems and products installed during the 2012 through 2016 calendar years and expires on December 31, 2016. improvements, homeowners may be able to claim HR 1424 tax credits equal to 30% of the total installed costs. Subject to IRS regulations, tax credits apply as a direct reduction of taxes owed. directed taxpayers to use Form 5695 to calculate and file for theirCustomers should consult with a tax professional to fully understand how the tax credits may apply to you, what you can do to obtain one, and for advice on and/or assistance WHICH PRODUCTS ARE ELIGIBLE? The following residential Trane products qualify for a federal tax credit: Split system air conditioning – that meet 25C requirements of 16 SEER/13 EER (both efficiency levels must be met to qualify for Split system heat pump – that meet 25C requirements of 15 SEER/12.5 EER/8.5 HSPF (all three efficiency levels must be met to qualify for the tax credit)

Gas furnace – that meet 25C requirements of 95% AFUE Advanced main air circulating fan - gas furnace or packaged system with an advanced circulating fan that utilizes no more thanhow much does a new air conditioning unit cost 2011 2% of furnace total energy use per 25c requirements.gree split air conditioner service manual Packaged air conditioning, heat pump or dual fuel products –air conditioner window unit not cold that meet 25C requirements of 14 SEER, 12 EER, 8 HSPF Geothermal Systems-Energy Improvement and Extension Act of 2008H.R. 1424 offers a onetime tax credit of 30% of the total investment for systems that meet or exceed Energy Star requirements and be installed after December 31, 2007.

*Maximum 25C tax credit amount - is $500 and is available for respective products in the following amounts: $300 maximum for a qualifying air conditioning system, heat pump or packaged system, $150 maximum for a qualifying furnace, and $50 maximum for a qualifying product with an advanced circulating fan. The tax credit is effective for all qualified systems installed from 1/1/2012 through 12/31/2016, and is only valid to tax payers that own their home and use it as In addition, you’ll find the government’s summary of Energy Star products that are eligible for HVAC credits at . As always, you can also contact your local independent Trane dealer who can help you determine product model numbers if necessary. Tax Calculators & Tips / Energy Tax Credit: Which Home Improvements Qualify? Taxpayers who upgrade their homes to improve energy efficiency or make use of renewable energy may be eligible for tax credits to offset some of the costs.

As of the 2015 tax year, the federal government offers two such credits: the Residential Energy Efficiency Property Credit and the Nonbusiness Energy Property Credit. The credits are good through 2016, except for the solar credits which are good through 2019 and then are reduced each year through the end of 2021. Claim the credits by filing Form 5695 with your tax return. Residential Energy Efficiency Property Tax Credit Equipment that qualifies for the Residential Renewable Energy Tax Credit includes solar, wind, geothermal and fuel-cell technology: Solar panels, or photovoltaics, for generating electricity. The electricity must be used in the home.The water heated by the system must be used inside the home, and at least half of the home's water-heating capacity must be solar. (Solar heaters for swimming pools and hot tubs do not qualify.) Wind turbines that generate up to 100 kilowatts of electricity for residential use. Geothermal heat pumps that meet federal Energy Star guidelines.

Fuel cells that rely on a renewable resource (usually hydrogen) to generate power for a home. The equipment must generate at least 0.5 kilowatts of power. Renewable energy tax credit details According to the U.S. Department of Energy, you can claim the Residential Energy Efficiency Property Credit for solar, wind, and geothermal equipment in both your principal residence and a second home. But fuel-cell equipment qualifies only if installed in your principal residence. Nonbusiness Energy Property Tax Credit Equipment and materials can qualify for the Nonbusiness Energy Property Credit only if they meet technical efficiency standards set by the Department of Energy. The manufacturer can tell you whether a particular item meets those standards. For this credit, the IRS distinguishes between two kinds of upgrades. Exterior windows and skylights Electric heat pump water heaters Central air conditioning systems Natural gas, propane or oil water heaters