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 will now go through 2020. This might make you eligible for incentives for energy-efficient home improvements, like modern heating and cooling equipment, water heaters and heat pumps.
How Do I Know if My Equipment Qualifies?
To become eligible for the credit, the house is required to 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 Eligible to be High-Efficiency Renovations?
Usually, this tax reduction is equivalent to 10% of the cost of the subsequent energy-saving improvements that achieve certain 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
Am I Limited to Claiming a Certain Amount?
Yes, there’s a lifetime limitation of $500 per home. This means if you have taken this credit in previous years, you should decrease any credit you already claimed.
If you have claimed the max amount, you won’t qualify for any other reductions under this extension.
Credit Limits for Specific Items
Tax reductions are limited for a few qualified equipment:
- 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 Units Today
Been putting off installing new heating and cooling units? Reach 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 next year.