When it comes to energy-efficient HVAC installation in Kansas City, there’s fantastic news for homeowners this tax season.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This could make you eligible for reductions for energy-efficient home enhancements, like new heating and cooling units, water heaters and heat pumps.
What Are the Eligibility Requirements?
To qualify for the reduction, the house is required to be the taxpayer’s chief home in the USA. The improvement must work for a minimum of five years, with the first use originating with the homeowner.
What Varieties of Changes are Eligible to be High-Efficiency Upgrades?
Generally, this tax credit is equivalent to 10% of the expense of the ensuing energy-saving enhancements 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
- Insulation
- Certain metal and asphalt roofing
- Certain exterior storm windows, skylights and storm doors
- Solar/geothermal energy products, 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 taken this reduction in past years, you must reduce any credit you already claimed.
If you’ve already claimed the max amount, you won’t qualify for any other credits with this continuation.
Credit Maximums for Particular Equipment
Incentives are restricted for a few participating solutions:
- 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 Units Today
Been delaying buying new heating and cooling system? Reach the Experts at 816-787-0500 or contact us online. We can help you choose an energy-efficient system you can reap tax benefits from the following year.