As far as energy-efficient HVAC installation in Houston, there’s fantastic news for your family this tax season.
The Residential Energy Efficient Property Credit has been extended through 2020. This might make you eligible for credits for energy-efficient home enhancements, like updated heating and cooling equipment, water heaters and heat pumps.
How Do I Know if My Equipment Qualifies?
To be entitled for the incentive, the home is required to be the taxpayer’s main residence in the USA. The improvement should have a life of at least five years, with the original use beginning with the homeowner.
What Kinds of Enhancements are Eligible to be High-Efficiency Updates?
Generally, this tax credit is equivalent to 10% of the cost of the ensuing energy-saving enhancements that meet certain 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
- Particular metal and asphalt roofing
- Certain exterior storm windows, skylights and storm doors
- Solar/geothermal energy equipment, for example solar electricity, solar water heaters and geothermal heat pumps
Is There a Limit to How Much I Can Claim?
Yes, there’s a lifetime max credit of $500 per home. This means if you have taken this credit in prior years, you should lower any credit you already claimed.
If you’ve already claimed the max amount, you won’t qualify for any other credits under this expansion.
Credit Limits for Particular Units
Credits are restricted for certain participating equipment:
- Windows and skylights—$200
- Advanced main air circulation—$50
- Hot water boilers—$150
- Energy-efficient units—$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 Equipment Today
Been delaying getting new heating and cooling units? Talk with the Experts at (713) 352-7887 or contact us online. We can help you choose an energy-efficient system you can earn tax benefits from the following year.