When it comes to energy-efficient HVAC installation in Fort Wayne, there’s good news for homeowners this tax period.
The Residential Energy Efficient Property Credit will now go through 2020. This might make you eligible for incentives for energy-efficient home modifications, like new heating and cooling units, water heaters and heat pumps.
How Do I Know if My Equipment Qualifies?
To qualify for the credit, the house must be the taxpayer’s primary residence in the USA. The change should have a life of at least five years, with the first use starting with the homeowner.
What Varieties of Enhancements are Eligible to be High-Efficiency Updates?
Typically, this tax reduction is equivalent to 10% of the expense of the subsequent energy-saving changes that match certain ENERGY STAR® guidelines:
- 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
- Energy-efficient metal and asphalt roofing
- Certain exterior storm windows, skylights and storm doors
- Solar/geothermal energy products, for instance solar electricity, solar water heaters and geothermal heat pumps
Is There a Limit to How Much I Can Claim?
Yes, there’s a lifetime limitation of $500 per location. This means if you have taken this reduction in previous years, you are required to decrease any credit you already claimed.
If you’ve previously claimed the max amount, you aren’t eligible for any additional credits with this expansion.
Credit Limits for Specific Units
Incentives are limited for certain qualified items:
- 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.
Enhance Your Heating and Cooling Equipment Today
Been procrastinating upgrading your heating and cooling units? Call the Experts at 260-557-1275 or contact us online. We can help you select an energy-efficient system you can earn tax benefits from the next year.