When it comes to energy-efficient HVAC installation in Longmont, there’s good news for you this tax period.
The Residential Energy Efficient Property Credit has been extended through 2020. This could qualify you for credits for energy-efficient home enhancements, like updated heating and cooling equipment, water heaters and heat pumps.
What Are the Eligibility Requirements?
To qualify for the credit, the residence is required to be the taxpayer’s primary residence in the U.S. The improvement must have a life of five years or more, with the original use starting with the homeowner.
What Types of Enhancements are Considered High-Efficiency Renovations?
Usually, this tax credit corresponds with 10% of the expense of the following energy-saving changes that match 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
- Energy-efficient metal and asphalt roofing
- Certain exterior storm windows, skylights and storm doors
- Solar/geothermal energy solutions, for instance solar electricity, solar water heaters and geothermal heat pumps
Is There a Limit to How Much I Can Claim?
Yes, there’s a lifetime limit of $500 per home. This means if you have taken this incentive in previous years, you must reduce any credit you claimed earlier.
If you have claimed the top amount, you won’t qualify for any other incentives through this continuation.
Credit Limits for Specific Units
Incentives are limited for a few participating 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 System Today
Been delaying upgrading your heating and cooling units? Talk with the Experts at 303-647-5749 or contact us online. We can help you find an energy-efficient system you can reap tax benefits from the following year.