In regard to energy-efficient HVAC installation in West Chester, there’s fantastic news for your family at tax time.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This could qualify you for reductions for energy-efficient home enhancements, like new heating and cooling systems, water heaters and heat pumps.
How Do I Know if My Equipment Qualifies?
To become eligible for the reduction, the house is required to be the taxpayer’s chief residence in the United States. The improvement should last for a minimum of five years, with the original use originating with the homeowner.
What Varieties of Enhancements are Regarded as High-Efficiency Upgrades?
Typically, this tax credit equals 10% of the expense of the subsequent energy-saving improvements that meet specified ENERGY STAR® conditions:
- 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
- Particular exterior storm windows, skylights and storm doors
- Solar/geothermal energy solutions, for example 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 past years, you must lower any credit you previously claimed.
If you have claimed the maximum amount, you won’t be eligible for any other reductions through this expansion.
Credit Limits for Certain Units
Incentives are limited for some qualified equipment:
- 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.
Enhance Your Heating and Cooling Equipment Today
Been delaying installing new heating and cooling equipment? Call the Experts at 484-401-7577 or contact us online. We can help you select an energy-efficient system you can get tax benefits from the next year.