In regard to energy-efficient HVAC installation in San Antonio, there’s good news for you this tax period.
The Residential Energy Efficient Property Credit will now go through 2020. This may qualify you for credits for energy-efficient home enhancements, like modern heating and cooling equipment, water heaters and heat pumps.
What Are the Eligibility Requirements?
To qualify for the reduction, the home should be the taxpayer’s primary home in the United States. The improvement should have a life of at least five years, with the initial use starting with the taxpayer.
What Types of Changes are Qualify for High-Efficiency Upgrades?
Usually, this tax reduction corresponds with 10% of the expense of the subsequent energy-saving changes that meet certain ENERGY STAR® conditions:
- 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 solutions, for instance solar electricity, solar water heaters and geothermal heat pumps
Is There a Maximum Amount I Can Claim?
Yes, there’s a lifetime limitation of $500 per home. This means if you have used this credit in past years, you should decrease any credit you claimed earlier.
If you’ve already claimed the top amount, you won’t qualify for any other reductions through this expansion.
Credit Limits for Specific Units
Incentives have a limit for a few qualified 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.
Upgrade Your Heating and Cooling Equipment Today
Been putting off installing new heating and cooling system? Reach the Experts at 210-404-4233 or contact us online. We can help you find an energy-efficient system you can reap tax benefits from the following year.