As far as energy-efficient HVAC installation in Louisville, there’s good news for you this tax season.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This might qualify you for credits for energy-efficient home improvements, like new heating and cooling units, water heaters and heat pumps.
What Are the Eligibility Requirements?
To be entitled for the incentive, the home is required to be the taxpayer’s primary residence in the United States. The improvement needs to last for a minimum of five years, with the first use starting with you.
What Types of Enhancements are Eligible to be High-Efficiency Renovations?
Typically, this tax incentive equals 10% of the cost of the ensuing energy-saving improvements that match specified 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
- Certain exterior storm windows, skylights and storm doors
- Solar/geothermal energy products, for example solar electricity, solar water heaters and geothermal heat pumps
Am I Limited to Claiming a Certain Amount?
Yes, there’s a lifetime restriction of $500 per location. This means if you have claimed this incentive in past years, you should decrease any credit you claimed earlier.
If you have claimed the top amount, you won’t qualify for any other incentives through this expansion.
Credit Maximums for Specific Units
Credits have a limit for certain qualified 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.
Enhance Your Heating and Cooling Equipment Today
Been delaying buying new heating and cooling system? Reach the Experts at 502-785-8230 or contact us online. We can help you find an energy-efficient system you can reap tax benefits from the next year.