As far as energy-efficient HVAC installation in Dayton, there’s good news for your family this tax period.
The Residential Energy Efficient Property Credit will now go through 2020. This could entitle you to incentives for energy-efficient home improvements, like updated heating and cooling systems, water heaters and heat pumps.
How Do I Know if My Equipment Qualifies?
To qualify for the credit, the house is required to be the taxpayer’s chief residence in the USA. The improvement should have a life of at least five years, with the initial use originating with the homeowner.
What Types of Improvements are Qualify for High-Efficiency Updates?
Generally, this tax credit equals 10% of the expense of the subsequent energy-saving improvements that match 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
- Insulation
- Qualified metal and asphalt roofing
- Energy-efficient exterior storm windows, skylights and storm doors
- Solar/geothermal energy solutions, such as 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 home. This means if you have used this incentive in prior years, you are required to lower any credit you already claimed.
If you’ve already claimed the maximum amount, you won’t be eligible for any other reductions under this expansion.
Credit Limits for Certain Equipment
Tax reductions are limited for some participating items:
- 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.
Upgrade Your Heating and Cooling Equipment Today
Been delaying buying new heating and cooling equipment? Call the Experts at 937-503-7896 or contact us online. We can help you find an energy-efficient system you can earn tax benefits during the upcoming year.