In regard to energy-efficient HVAC installation in Dallas, there’s great news for homeowners at tax time.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This might make you eligible for credits for energy-efficient home modifications, like new heating and cooling units, water heaters and heat pumps.
What Equipment is Eligible?
To qualify for the reduction, the house is required to be the taxpayer’s chief house in the United States. The improvement needs to work for five years or more, with the first use starting with the taxpayer.
What Varieties of Improvements are Eligible to be High-Efficiency Updates?
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
- Energy-efficient metal and asphalt roofing
- Qualified 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 maximum credit of $500 per home. This means if you have used this reduction in past years, you are required to reduce any credit you previously claimed.
If you’ve previously claimed the highest amount, you won’t be eligible for any additional credits through this expansion.
Credit Maximums 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 units? Call the Experts at 469-250-0932 or contact us online. We can help you select an energy-efficient system you can earn tax benefits from the next year.