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 reductions 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 residence must be the taxpayer’s chief house in the U.S. The improvement needs to last for at least five years, with the original use starting with the taxpayer.
What Kinds of Enhancements are Eligible to be High-Efficiency Upgrades?
Typically, this tax incentive corresponds with 10% of the cost of the following energy-saving changes that achieve specific 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, for instance 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 lower any credit you previously claimed.
If you’ve previously claimed the max amount, you won’t be eligible for any other incentives with this extension.
Credit Limits for Specific Units
Tax reductions have a limit for a few eligible 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.
Improve Your Heating and Cooling Units 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 earn tax benefits during the upcoming year.