When it comes to energy-efficient HVAC installation in Longmont, there’s good news for your family at tax time.
The Residential Energy Efficient Property Credit has been extended through 2020. This might entitle you to reductions for energy-efficient home modifications, like updated heating and cooling units, water heaters and heat pumps.
What Makes My Purchase Eligible?
To qualify for the credit, the residence should be the taxpayer’s primary residence in the USA. The enhancement must have a life of five years or more, with the original use starting with the homeowner.
What Types of Changes are Considered High-Efficiency Updates?
Usually, this tax credit corresponds with 10% of the price of the following energy-saving enhancements 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
Am I Limited to Claiming a Certain Amount?
Yes, there’s a lifetime limit of $500 per property. This means if you have used this reduction 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 reductions through this expansion.
Credit Limits for Specific Equipment
Tax reductions are restricted for certain eligible 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 procrastinating buying new heating and cooling system? Reach the Experts at 303-647-5749 or contact us online. We can help you select an energy-efficient system you can reap tax benefits from the following year.