When it comes to energy-efficient HVAC installation in Raleigh, there’s good news for your family this tax period.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This may make you eligible for reductions for energy-efficient home modifications, like new heating and cooling equipment, water heaters and heat pumps.
What Equipment is Eligible?
To be entitled for the credit, the residence must be the taxpayer’s chief residence in the United States. The improvement must last for a minimum of five years, with the first use originating with the taxpayer.
What Kinds of Changes are Regarded as High-Efficiency Updates?
Typically, this tax reduction corresponds with 10% of the cost of the ensuing energy-saving enhancements that match specific 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
- Particular metal and asphalt roofing
- Particular exterior storm windows, skylights and storm doors
- Solar/geothermal energy equipment, like 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 claimed this reduction in prior years, you must lower any credit you claimed earlier.
If you have claimed the top amount, you won’t be eligible for any extra credits through this continuation.
Credit Caps for Certain Items
Incentives are restricted for a couple of eligible solutions:
- Windows and skylights—$200
- Advanced main air circulation—$50
- Hot water boilers—$150
- Energy-efficient units—$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 putting off upgrading your heating and cooling equipment? Talk with the Experts at 919-578-4329 or contact us online. We can help you find an energy-efficient system you can earn tax benefits from the next year.