When it comes to energy-efficient HVAC installation in Elkhart, there’s good news for you this tax period.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This may entitle you to reductions for energy-efficient home enhancements, like modern heating and cooling systems, water heaters and heat pumps.
What Equipment is Eligible?
To qualify for the reduction, the house must be the taxpayer’s chief home in the USA. The improvement must work for a minimum of five years, with the original use originating with you.
What Varieties of Enhancements are Eligible to be High-Efficiency Updates?
Generally, this tax reduction is equivalent to 10% of the price of the following energy-saving enhancements 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
- Energy-efficient metal and asphalt roofing
- Energy-efficient exterior storm windows, skylights and storm doors
- Solar/geothermal energy products, such as solar electricity, solar water heaters and geothermal heat pumps
How Much Can I Claim?
Yes, there’s a lifetime cap of $500 per home. This means if you have claimed this credit in past years, you are required to reduce any credit you already claimed.
If you’ve previously claimed the top amount, you won’t be eligible for any extra reductions under this expansion.
Credit Maximums for Specific Items
Incentives are limited for certain participating items:
- 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.
Enhance Your Heating and Cooling Units Today
Been delaying upgrading your heating and cooling units? Talk with the Experts at 574-218-6404 or contact us online. We can help you choose an energy-efficient system you can earn tax benefits during the upcoming year.