When it comes to energy-efficient HVAC installation in Buffalo, there’s fantastic news for homeowners at tax time.
The Residential Energy Efficient Property Credit has been extended through 2020. This may entitle you to credits for energy-efficient home modifications, like modern heating and cooling equipment, water heaters and heat pumps.
What Equipment is Eligible?
To be entitled for the credit, the house should be the taxpayer’s main house in the United States. The improvement must work for five years or more, with the original use beginning with the taxpayer.
What Types of Changes are Considered High-Efficiency Updates?
Typically, this tax reduction equals 10% of the expense of the subsequent energy-saving enhancements that meet 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
- Certain metal and asphalt roofing
- Particular exterior storm windows, skylights and storm doors
- Solar/geothermal energy products, such as solar electricity, solar water heaters and geothermal heat pumps
Is There a Limit to How Much I Can Claim?
Yes, there’s a lifetime maximum credit of $500 per home. This means if you have used this credit in past years, you are required to lower any credit you previously claimed.
If you’ve already claimed the top amount, you aren’t eligible for any additional reductions with this extension.
Credit Maximums for Specific Items
Credits are limited for a couple of 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.
Upgrade Your Heating and Cooling System Today
Been putting off upgrading your heating and cooling units? Talk with the Experts at 716-427-6807 or contact us online. We can help you choose an energy-efficient system you can get tax benefits during the upcoming year.