The American Tax Payer Relief Act of 2012, reinstated tax incentives for Burbank homeowners who install certain HVAC components in their home between January 1, 2012 and December 31, 2013. Through 2013, the Federal government will allow an array of energy tax credits for heating and cooling systems and other energy-efficiency improvements. The program allows for a lifetime maximum credit of 10% of upgrade costs up to $500 for all AC installation upgrades combined. Also, home owners who received a credit of $500 or more in years 2009 and 2010 are excluded from claiming the credits in 2013. The American Tax Payer Relief Act of 2012 creates a $500 total ceiling; however, some improvements have individual limits below $500. For example, the most a homeowner can claim for any advanced main air-circulating fan is $50. Likewise, the cap for any qualified natural gas, propane/oil furnace or hot water boilers is set at $150. The Relief Act of 2012 also sets a cap of $300 for any qualified item of energy-efficient building property, as specified by the IRS. For the most part, installation costs are 100% covered; however, certain limits and deadlines apply. First, homeowners can claim no more than a $500 for the year. Also, homeowners must keep their manufacture certifications and receipts in case they are needed when filing. Finally, the AC unit must have been before December 31, 2013. The Energy Star website provides information to homeowners about which AC units to install in order to obtain the tax credit. The website provides the most reliable information for homeowners about which systems receive the credit. Information is also available from the Internal Revenue Service, the US Department of Energy, and the Database of State Incentives for Renewables & Efficiency. The homeowner must always ask his or her contractor for a Manufacturer’s Certification Statement in order to obtain the tax credit. The cost for a Burbank resident to install an upgraded AC system may seem substantial; however, the savings from lower energy bills and tax credits makes a worthwhile investment.