In regard to energy-efficient HVAC installation in Pierre, there’s great news for homeowners this tax season.
The Residential Energy Efficient Property Credit has been extended through 2020. This can make you eligible for credits for energy-efficient home improvements, like modern heating and cooling equipment, water heaters and heat pumps.
How Do I Know if My Equipment Qualifies?
To qualify for the credit, the house must be the taxpayer’s main home in the USA. The improvement should last for a minimum of five years, with the original use starting with the taxpayer.
What Kinds of Enhancements are Considered High-Efficiency Upgrades?
Usually, this tax credit corresponds with 10% of the cost of the following energy-saving changes that achieve certain 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
- Particular metal and asphalt roofing
- Energy-efficient exterior storm windows, skylights and storm doors
- Solar/geothermal energy solutions, such as solar electricity, solar water heaters and geothermal heat pumps
How Much Can I Claim?
Yes, there’s a lifetime limit of $500 per home. This means if you have used this credit in past years, you are required to decrease any credit you already claimed.
If you’ve previously claimed the maximum amount, you won’t be eligible for any extra reductions with this extension.
Credit Limits for Specific Units
Incentives have a limit for a few participating solutions:
- 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.
Enhance Your Heating and Cooling System Today
Been putting off upgrading your heating and cooling system? Talk with the Experts at 605-223-0307 or contact us online. We can help you choose an energy-efficient system you can get tax benefits during the upcoming year.