When it comes to energy-efficient HVAC installation in Concord, there’s good news for your family this tax period.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This might make you eligible for reductions for energy-efficient home modifications, like modern heating and cooling equipment, water heaters and heat pumps.
What Makes My Purchase Eligible?
To become eligible for the incentive, the home should be the taxpayer’s primary home in the U.S.. The enhancement should work for five years or more, with the initial use beginning with the homeowner.
What Kinds of Improvements are Regarded as High-Efficiency Upgrades?
Usually, this tax incentive is equivalent to 10% of the price of the ensuing energy-saving improvements that achieve certain ENERGY STAR® requirements:
- Advanced main air-circulating fans
- Energy-efficient gas, propane or oil furnaces
- Energy-efficient gas, propane or oil hot water boilers
- Energy-efficient heat pumps
- Energy-efficient water heaters
- Energy-efficient central air conditioners
- Certain metal and asphalt roofing
- Particular exterior storm windows, skylights and storm doors
- Solar/geothermal energy solutions, such as solar electricity, solar water heaters and geothermal heat pumps
Is There a Limit to How Much I Can Claim?
Yes, there’s a lifetime max credit of $500 per location. This means if you have claimed this reduction in previous years, you should reduce any credit you previously claimed.
If you have claimed the max amount, you won’t be eligible for any additional reductions with this expansion.
Credit Limits for Specific Units
Credits are restricted for a few eligible solutions:
- Windows and skylights—$200
- Advanced main air circulation—$50
- Hot water boilers—$150
- Energy-efficient equipment—$300
If you have questions about how you can benefit from the extension of the residential energy efficient property tax credit, download Form 5695 or contact your tax advisor for assistance.
Enhance Your Heating and Cooling Equipment Today
Been procrastinating upgrading your heating and cooling units? Talk with the Experts at 925-384-1303 or contact us online. We can help you select an energy-efficient system you can get tax benefits during the upcoming year.