When it comes to energy-efficient HVAC installation in the Wasatch Front region, there’s good news for your family this tax season.
The Residential Energy Efficient Property Credit will now go through 2020. This might entitle you to reductions for energy-efficient home improvements, like new heating and cooling equipment, water heaters and heat pumps.
What Are the Eligibility Requirements?
To become eligible for the reduction, the house should be the taxpayer’s main home in the United States. The improvement must have a life of five years or more, with the first use originating with the homeowner.
What Varieties of Enhancements are Regarded as High-Efficiency Updates?
Typically, this tax credit is equivalent to 10% of the expense of the ensuing 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
- Particular metal and asphalt roofing
- Particular exterior storm windows, skylights and storm doors
- Solar/geothermal energy products, such as solar electricity, solar water heaters and geothermal heat pumps
Is There a Maximum Amount I Can Claim?
Yes, there’s a lifetime maximum credit of $500 per home. This means if you have taken this credit in past years, you must decrease any credit you already claimed.
If you have claimed the highest amount, you aren’t eligible for any additional credits through this continuation.
Credit Limits for Particular Items
Tax reductions are restricted for some qualified solutions:
- Windows and skylights—$200
- Advanced main air circulation—$50
- Hot water boilers—$150
- Energy-efficient units—$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.
Upgrade Your Heating and Cooling Equipment Today
Been putting off upgrading your heating and cooling equipment? Reach the Experts at 801-436-8985 or contact us online. We can help you select an energy-efficient system you can earn tax benefits during the upcoming year.