As far as energy-efficient HVAC installation in Livermore, there’s good news for you this tax season.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This could make you eligible for reductions for energy-efficient home enhancements, like modern heating and cooling equipment, water heaters and heat pumps.
How Do I Know if My Equipment Qualifies?
To become eligible for the reduction, the residence must be the taxpayer’s primary house in the USA. The improvement needs to last for five years or more, with the initial use originating with the taxpayer.
What Kinds of Changes are Eligible to be High-Efficiency Updates?
Generally, this tax credit is equivalent to 10% of the price of the following energy-saving enhancements that match 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
- Insulation
- Particular metal and asphalt roofing
- Particular exterior storm windows, skylights and storm doors
- Solar/geothermal energy products, like 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 taken this incentive in previous years, you should reduce any credit you claimed earlier.
If you’ve already claimed the highest amount, you won’t be eligible for any other credits through this extension.
Credit Limits for Particular Equipment
Tax reductions are restricted for a couple of participating items:
- 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.
Improve Your Heating and Cooling System Today
Been procrastinating buying new heating and cooling equipment? Call the Experts at 925-364-5427 or contact us online. We can help you find an energy-efficient system you can get tax benefits during the upcoming year.