In regard to energy-efficient HVAC installation in Mobile, there’s good news for homeowners this tax season.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This might make you eligible for credits for energy-efficient home enhancements, like modern heating and cooling systems, water heaters and heat pumps.
What Makes My Purchase Eligible?
To be entitled for the reduction, the house should be the taxpayer’s chief residence in the USA. The change should work for a minimum of five years, with the original use beginning with the taxpayer.
What Types of Improvements are Qualify for High-Efficiency Upgrades?
Usually, this tax reduction corresponds with 10% of the expense of the ensuing energy-saving changes that match specified 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 equipment, for example solar electricity, solar water heaters and geothermal heat pumps
How Much Can I Claim?
Yes, there’s a lifetime max credit of $500 per location. This means if you have used this reduction in previous years, you are required to lower any credit you already claimed.
If you’ve previously claimed the highest amount, you won’t be eligible for any additional credits under this continuation.
Credit Limits for Certain Equipment
Credits are limited for a few eligible items:
- Windows and skylights—$200
- Advanced main air circulation—$50
- Hot water boilers—$150
- Energy-efficient systems—$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 System Today
Been delaying upgrading your heating and cooling units? Call the Experts at 251-202-7503 or contact us online. We can help you select an energy-efficient system you can earn tax benefits during the upcoming year.