As far as energy-efficient HVAC installation in Waldorf, there’s fantastic news for you this tax period.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This may make you eligible for incentives for energy-efficient home enhancements, like modern heating and cooling units, water heaters and heat pumps.
What Makes My Purchase Eligible?
To be entitled for the credit, the home should be the taxpayer’s chief home in the United States. The enhancement should have a life of a minimum of five years, with the initial use beginning with you.
What Kinds of Enhancements are Considered High-Efficiency Renovations?
Typically, this tax incentive corresponds with 10% of the expense of the following energy-saving improvements that achieve particular 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
- Qualified metal and asphalt roofing
- Certain exterior storm windows, skylights and storm doors
- Solar/geothermal energy equipment, like solar electricity, solar water heaters and geothermal heat pumps
Is There a Limit to How Much I Can Claim?
Yes, there’s a lifetime max credit of $500 per property. This means if you have taken this reduction in prior years, you should lower any credit you already claimed.
If you’ve already claimed the max amount, you won’t qualify for any additional reductions under this continuation.
Credit Maximums for Certain Units
Tax reductions are limited 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.
Upgrade Your Heating and Cooling Equipment Today
Been procrastinating buying new heating and cooling equipment? Talk with the Experts at 301-747-3140 or contact us online. We can help you choose an energy-efficient system you can earn tax benefits during the upcoming year.