When it comes to energy-efficient HVAC installation in Charlotte, there’s good news for homeowners this tax period.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This may qualify you for reductions for energy-efficient home enhancements, like modern heating and cooling equipment, water heaters and heat pumps.
What Makes My Purchase Eligible?
To be entitled for the incentive, the home should be the taxpayer’s chief residence in the USA. The enhancement should work for at least five years, with the initial use originating with the homeowner.
What Types of Changes are Eligible to be High-Efficiency Renovations?
Typically, this tax credit corresponds with 10% of the expense of the subsequent energy-saving enhancements that meet specific 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
- Particular metal and asphalt roofing
- Particular exterior storm windows, skylights and storm doors
- Solar/geothermal energy solutions, for instance solar electricity, solar water heaters and geothermal heat pumps
Am I Limited to Claiming a Certain Amount?
Yes, there’s a lifetime maximum credit of $500 per property. This means if you have taken this reduction in past years, you must reduce any credit you previously claimed.
If you’ve already claimed the maximum amount, you aren’t eligible for any additional incentives through this expansion.
Credit Caps for Specific Units
Tax reductions are restricted for a few qualified solutions:
- Windows and skylights—$200
- Advanced main air circulation—$50
- Hot water boilers—$150
- Energy-efficient equipment—$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 system? Reach the Experts at 704-464-4307 or contact us online. We can help you choose an energy-efficient system you can earn tax benefits from the following year.