In regard to 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 could entitle you to credits for energy-efficient home improvements, like new heating and cooling units, water heaters and heat pumps.
What Makes My Purchase Eligible?
To become eligible for the reduction, the home should be the taxpayer’s primary residence in the United States. The improvement needs to work for at least five years, with the initial use beginning with the homeowner.
What Types of Changes are Eligible to be High-Efficiency Renovations?
Typically, this tax credit equals 10% of the cost of the ensuing energy-saving improvements that achieve 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
- Insulation
- 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
Is There a Limit to How Much I Can Claim?
Yes, there’s a lifetime restriction of $500 per home. This means if you have claimed this incentive in prior years, you are required to lower any credit you claimed earlier.
If you have claimed the top amount, you won’t qualify for any extra reductions through this continuation.
Credit Caps for Specific Equipment
Credits have a limit for a few qualified solutions:
- 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 procrastinating upgrading your 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.