When it comes to energy-efficient HVAC installation in Champaign, there’s good news for your family this tax period.
The Residential Energy Efficient Property Credit has been extended through 2020. This might qualify you for credits for energy-efficient home improvements, like new heating and cooling units, water heaters and heat pumps.
What Are the Eligibility Requirements?
To qualify for the credit, the house is required to be the taxpayer’s chief residence in the United States. The improvement should work for a minimum of five years, with the original use starting with the homeowner.
What Kinds of Changes are Qualify for High-Efficiency Upgrades?
Usually, this tax reduction equals 10% of the cost of the following energy-saving changes that achieve specified ENERGY STAR® guidelines:
- 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
- Energy-efficient metal and asphalt roofing
- Certain exterior storm windows, skylights and storm doors
- Solar/geothermal energy solutions, such as solar electricity, solar water heaters and geothermal heat pumps
Is There a Maximum Amount I Can Claim?
Yes, there’s a lifetime limit of $500 per home. This means if you have used this reduction in previous years, you should lower any credit you claimed earlier.
If you have claimed the highest amount, you won’t be eligible for any additional reductions through this extension.
Credit Caps for Certain Units
Credits are restricted for a couple of eligible solutions:
- Windows and skylights—$200
- Advanced main air circulation—$50
- Hot water boilers—$150
- Energy-efficient systems—$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.
Upgrade Your Heating and Cooling System Today
Been procrastinating getting new heating and cooling system? Call the Experts at 217-689-2469 or contact us online. We can help you select an energy-efficient system you can get tax benefits during the upcoming year.