When it comes to energy-efficient HVAC installation in Concord, there’s good news for you this tax period.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This could make you eligible for credits for energy-efficient home enhancements, like updated heating and cooling equipment, water heaters and heat pumps.
What Makes My Purchase Eligible?
To become eligible for the incentive, the home is required to be the taxpayer’s primary home in the USA. The improvement needs to last for five years or more, with the initial use beginning with the homeowner.
What Types of Improvements are Regarded as High-Efficiency Upgrades?
Typically, this tax incentive is equivalent to 10% of the expense of the subsequent energy-saving improvements that match 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
- Insulation
- Certain metal and asphalt roofing
- Qualified exterior storm windows, skylights and storm doors
- Solar/geothermal energy equipment, for instance solar electricity, solar water heaters and geothermal heat pumps
Am I Limited to Claiming a Certain Amount?
Yes, there’s a lifetime max credit of $500 per home. This means if you have claimed this incentive in previous years, you are required to reduce any credit you already claimed.
If you have claimed the maximum amount, you aren’t eligible for any additional incentives through this expansion.
Credit Limits for Specific Units
Credits are restricted for a few eligible equipment:
- 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.
Improve Your Heating and Cooling Equipment Today
Been procrastinating buying new heating and cooling system? Reach 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.