As far as energy-efficient HVAC installation in Tempe, there’s fantastic news for you at tax time.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This may entitle you to incentives for energy-efficient home improvements, like new heating and cooling units, water heaters and heat pumps.
What Are the Eligibility Requirements?
To become eligible for the incentive, the residence must be the taxpayer’s main home in the United States. The improvement should have a life of a minimum of five years, with the original use originating with the homeowner.
What Kinds of Enhancements are Qualify for High-Efficiency Renovations?
Typically, this tax reduction is equivalent to 10% of the expense of the ensuing energy-saving improvements that achieve specified ENERGY STAR® conditions:
- 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
- Energy-efficient 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 Maximum Amount I Can Claim?
Yes, there’s a lifetime limitation of $500 per home. This means if you have used this reduction in previous years, you should lower any credit you previously claimed.
If you’ve already claimed the maximum amount, you aren’t eligible for any extra credits under this expansion.
Credit Limits for Certain Equipment
Credits have a limit for some eligible equipment:
- Windows and skylights—$200
- Advanced main air circulation—$50
- Hot water boilers—$150
- Energy-efficient systems—$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 Units Today
Been delaying buying new heating and cooling units? Talk with the Experts at 623-243-4517 or contact us online. We can help you choose an energy-efficient system you can get tax benefits from the next year.