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 credits for energy-efficient home modifications, like new heating and cooling units, water heaters and heat pumps.
What Equipment is Eligible?
To become eligible for the credit, the residence must be the taxpayer’s main residence in the United States. The improvement must last for at least five years, with the first use originating with the taxpayer.
What Kinds of Enhancements are Regarded as High-Efficiency Renovations?
Usually, this tax reduction is equivalent to 10% of the cost of the ensuing energy-saving enhancements that achieve 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
- Qualified 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 limitation of $500 per home. This means if you have claimed this incentive in prior years, you must decrease any credit you claimed earlier.
If you have claimed the top amount, you aren’t eligible for any other credits through this continuation.
Credit Caps for Particular Items
Tax reductions are restricted for a couple of eligible equipment:
- 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 following year.