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 has been lengthened through 2020. This could make you eligible for incentives for energy-efficient home enhancements, 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 improvement needs to have a life of a minimum of five years, with the first use starting with you.
What Varieties of Changes are Eligible to be High-Efficiency Updates?
Usually, this tax reduction corresponds with 10% of the price of the ensuing energy-saving enhancements that achieve 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 home. This means if you have used this reduction in previous years, you should decrease any credit you previously claimed.
If you’ve previously claimed the maximum amount, you aren’t eligible for any additional credits through this expansion.
Credit Limits for Specific Equipment
Incentives are restricted for a few qualified items:
- 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.
Improve Your Heating and Cooling Equipment Today
Been procrastinating upgrading your heating and cooling system? Call the Experts at 260-557-1275 or contact us online. We can help you find an energy-efficient system you can earn tax benefits from the following year.