When it comes to energy-efficient HVAC installation in Buffalo, there’s great 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 enhancements, like modern heating and cooling equipment, water heaters and heat pumps.
What Equipment is Eligible?
To be entitled for the credit, the residence is required to be the taxpayer’s chief home in the United States. The change must last for five years or more, with the original use beginning with the taxpayer.
What Kinds of Enhancements are Eligible to be High-Efficiency Updates?
Usually, this tax reduction equals 10% of the price of the ensuing 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
- Certain metal and asphalt roofing
- Particular exterior storm windows, skylights and storm doors
- Solar/geothermal energy products, 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 cap of $500 per property. This means if you have taken this credit in prior years, you should decrease any credit you previously claimed.
If you’ve previously claimed the top amount, you won’t be eligible for any additional incentives through this extension.
Credit Caps for Specific Items
Credits are restricted 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 Units Today
Been putting off buying new heating and cooling units? Reach the Experts at 716-427-6807 or contact us online. We can help you choose an energy-efficient system you can earn tax benefits during the upcoming year.