In regard to energy-efficient HVAC installation in Waldorf, there’s great news for your family at tax time.
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 equipment, water heaters and heat pumps.
What Are the Eligibility Requirements?
To become eligible for the credit, the home is required to be the taxpayer’s main house in the United States. The improvement needs to have a life of at least five years, with the initial use starting with the homeowner.
What Types of Changes are Considered High-Efficiency Renovations?
Usually, this tax credit corresponds with 10% of the price of the following energy-saving improvements that match 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
- Insulation
- 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 limitation of $500 per home. This means if you have used this incentive in prior years, you should lower any credit you previously claimed.
If you’ve previously claimed the maximum amount, you won’t qualify for any additional reductions under this expansion.
Credit Maximums for Certain Equipment
Tax reductions are restricted 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.
Upgrade Your Heating and Cooling Equipment Today
Been procrastinating upgrading your 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 get tax benefits during the upcoming year.