In regard to energy-efficient HVAC installation in Columbia, there’s great news for your family this tax period.
The Residential Energy Efficient Property Credit has been extended through 2020. This can qualify you for incentives for energy-efficient home modifications, like updated heating and cooling units, water heaters and heat pumps.
What Makes My Purchase Eligible?
To qualify for the incentive, the residence must be the taxpayer’s main residence in the USA. The improvement must have a life of a minimum of five years, with the initial use originating with the taxpayer.
What Kinds of Changes are Regarded as High-Efficiency Upgrades?
Usually, this tax reduction is equivalent to 10% of the expense of the following energy-saving changes that match 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
- Qualified exterior storm windows, skylights and storm doors
- Solar/geothermal energy products, such as solar electricity, solar water heaters and geothermal heat pumps
Is There a Limit to How Much I Can Claim?
Yes, there’s a lifetime limitation of $500 per location. This means if you have claimed this credit in previous years, you should lower any credit you claimed earlier.
If you’ve already claimed the max amount, you won’t qualify for any additional incentives with this continuation.
Credit Caps for Particular Items
Credits have a limit for a couple of participating equipment:
- 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 System Today
Been delaying buying new heating and cooling equipment? Talk with the Experts at 803-399-7208 or contact us online. We can help you select an energy-efficient system you can get tax benefits from the following year.