When it comes to energy-efficient HVAC installation in Hilton Head Island, there’s fantastic news for homeowners this tax season.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This might make you eligible for incentives for energy-efficient home improvements, like updated heating and cooling equipment, water heaters and heat pumps.
How Do I Know if My Equipment Qualifies?
To be entitled for the credit, the residence should be the taxpayer’s chief house in the U.S. The improvement should last for a minimum of five years, with the original use starting with the taxpayer.
What Varieties of Enhancements are Considered High-Efficiency Renovations?
Typically, this tax reduction corresponds with 10% of the cost of the ensuing energy-saving improvements that achieve 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
- Certain metal and asphalt roofing
- Energy-efficient exterior storm windows, skylights and storm doors
- Solar/geothermal energy equipment, like solar electricity, solar water heaters and geothermal heat pumps
Is There a Limit to How Much I Can Claim?
Yes, there’s a lifetime max credit of $500 per home. This means if you have taken this credit in previous years, you are required to decrease any credit you already claimed.
If you have claimed the maximum amount, you won’t qualify for any extra incentives under this extension.
Credit Limits for Specific Items
Tax reductions are limited for certain 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 putting off installing new heating and cooling system? Talk with the Experts at 843-619-3781 or contact us online. We can help you select an energy-efficient system you can get tax benefits from the following year.