As far as energy-efficient HVAC installation in Richmond, there’s great news for you this tax period.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This can make you eligible for credits for energy-efficient home enhancements, like new heating and cooling units, water heaters and heat pumps.
How Do I Know if My Equipment Qualifies?
To qualify for the incentive, the residence must be the taxpayer’s chief house in the United States. The improvement needs to have a life of at least five years, with the first use beginning with you.
What Types of Improvements are Qualify for High-Efficiency Updates?
Usually, this tax reduction corresponds with 10% of the expense of the following energy-saving enhancements that meet specific 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
- Particular metal and asphalt roofing
- Certain exterior storm windows, skylights and storm doors
- Solar/geothermal energy equipment, such as solar electricity, solar water heaters and geothermal heat pumps
How Much Can I Claim?
Yes, there’s a lifetime max credit of $500 per home. This means if you have taken this credit in past years, you should decrease any credit you already claimed.
If you have claimed the max amount, you won’t be eligible for any extra credits through this expansion.
Credit Maximums for Specific Equipment
Credits are limited for a few qualified solutions:
- Windows and skylights—$200
- Advanced main air circulation—$50
- Hot water boilers—$150
- Energy-efficient systems—$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 Units Today
Been delaying installing new heating and cooling system? Reach the Experts at 804-548-4480 or contact us online. We can help you select an energy-efficient system you can get tax benefits from the next year.