In regard to energy-efficient HVAC installation in Dallas, there’s fantastic news for homeowners this tax period.
The Residential Energy Efficient Property Credit will now go through 2020. This could make you eligible for credits for energy-efficient home enhancements, like new heating and cooling units, water heaters and heat pumps.
What Equipment is Eligible?
To qualify for the reduction, the residence is required to be the taxpayer’s main home in the United States. The improvement needs to last for five years or more, with the first use starting with the taxpayer.
What Varieties of Improvements are Considered High-Efficiency Renovations?
Generally, this tax incentive is equivalent to 10% of the expense of the subsequent energy-saving improvements that meet certain 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
- Qualified metal and asphalt roofing
- Particular exterior storm windows, skylights and storm doors
- Solar/geothermal energy products, for example solar electricity, solar water heaters and geothermal heat pumps
Am I Limited to Claiming a Certain Amount?
Yes, there’s a lifetime cap of $500 per home. This means if you have taken this reduction in past years, you are required to reduce any credit you already claimed.
If you’ve already claimed the highest amount, you aren’t eligible for any additional credits with this expansion.
Credit Caps for Specific Units
Tax reductions are limited for some 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 System Today
Been procrastinating buying new heating and cooling system? Call the Experts at 469-250-0932 or contact us online. We can help you select an energy-efficient system you can get tax benefits from the following year.