When it comes to energy-efficient HVAC installation in Fort Worth, there’s fantastic news for you this tax period.
The Residential Energy Efficient Property Credit has been extended through 2020. This might entitle you to incentives for energy-efficient home modifications, like modern heating and cooling systems, water heaters and heat pumps.
What Are the Eligibility Requirements?
To be entitled for the reduction, the home should be the taxpayer’s main house in the United States. The improvement must last for at least five years, with the initial use beginning with the taxpayer.
What Types of Improvements are Qualify for High-Efficiency Updates?
Typically, this tax credit equals 10% of the cost of the subsequent energy-saving improvements that achieve specified ENERGY STAR® requirements:
- 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
- Qualified metal and asphalt roofing
- Qualified exterior storm windows, skylights and storm doors
- Solar/geothermal energy equipment, 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 home. This means if you have used this reduction in previous years, you must lower any credit you claimed earlier.
If you’ve already claimed the maximum amount, you aren’t eligible for any other incentives under this extension.
Credit Caps for Certain Units
Incentives are restricted for a few qualified solutions:
- Windows and skylights—$200
- Advanced main air circulation—$50
- Hot water boilers—$150
- Energy-efficient units—$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 Equipment Today
Been delaying upgrading your heating and cooling system? Call the Experts at 817-668-6689 or contact us online. We can help you find an energy-efficient system you can earn tax benefits from the next year.