In regard to energy-efficient HVAC installation in Cleveland, there’s fantastic news for homeowners this tax period.
The Residential Energy Efficient Property Credit has been extended through 2020. This can entitle you to reductions for energy-efficient home modifications, like updated heating and cooling units, water heaters and heat pumps.
What Are the Eligibility Requirements?
To be entitled for the incentive, the house must be the taxpayer’s primary house in the USA. The improvement must have a life of at least five years, with the original use beginning with the taxpayer.
What Kinds of Changes are Considered High-Efficiency Updates?
Typically, this tax reduction is equivalent to 10% of the expense of the following energy-saving improvements that meet particular 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
- Qualified exterior storm windows, skylights and storm doors
- Solar/geothermal energy equipment, for example solar electricity, solar water heaters and geothermal heat pumps
Am I Limited to Claiming a Certain Amount?
Yes, there’s a lifetime max credit of $500 per home. This means if you have claimed this incentive in prior years, you should lower any credit you previously claimed.
If you’ve previously claimed the top amount, you aren’t eligible for any additional reductions with this extension.
Credit Caps for Particular Items
Credits have a limit for some eligible 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.
Upgrade Your Heating and Cooling System Today
Been delaying getting new heating and cooling units? Reach the Experts at 440-252-1375 or contact us online. We can help you choose an energy-efficient system you can get tax benefits from the next year.