When it comes to energy-efficient HVAC installation in Elkhart, there’s good news for your family at tax time.
The Residential Energy Efficient Property Credit will now go through 2020. This may entitle you to credits for energy-efficient home enhancements, like updated heating and cooling systems, water heaters and heat pumps.
What Equipment is Eligible?
To qualify for the reduction, the residence must be the taxpayer’s chief home in the U.S. The improvement must work for a minimum of five years, with the original use originating with the homeowner.
What Varieties of Changes are Eligible to be High-Efficiency Updates?
Generally, this tax reduction corresponds with 10% of the expense of the following energy-saving changes 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
- Insulation
- Qualified 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 prior years, you are required to reduce any credit you already claimed.
If you’ve previously claimed the top amount, you aren’t eligible for any extra incentives under this continuation.
Credit Maximums for Specific Items
Tax reductions are restricted for a few eligible 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.
Improve Your Heating and Cooling Units Today
Been procrastinating buying new heating and cooling system? 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.