As far as energy-efficient HVAC installation in Wheeling, there’s good news for you at tax time.
The Residential Energy Efficient Property Credit will now go through 2020. This might qualify you for reductions for energy-efficient home improvements, like updated heating and cooling systems, water heaters and heat pumps.
What Equipment is Eligible?
To become eligible for the reduction, the home should be the taxpayer’s chief home in the United States. The improvement should have a life of at least five years, with the initial use beginning with you.
What Varieties of Changes are Considered High-Efficiency Renovations?
Typically, this tax reduction is equivalent to 10% of the price of the subsequent energy-saving changes that meet particular 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 solutions, for instance solar electricity, solar water heaters and geothermal heat pumps
Is There a Maximum Amount I Can Claim?
Yes, there’s a lifetime restriction of $500 per home. This means if you have used this credit in past years, you must reduce any credit you previously claimed.
If you’ve already claimed the max amount, you won’t qualify for any extra reductions under this extension.
Credit Limits for Certain Units
Tax reductions are restricted for some 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 Units Today
Been procrastinating installing new heating and cooling system? Reach the Experts at 847-250-6729 or contact us online. We can help you select an energy-efficient system you can earn tax benefits from the following year.