When it comes to energy-efficient HVAC installation in Fort Myers, there’s great news for homeowners at tax time.
The Residential Energy Efficient Property Credit will now go through 2020. This could make you eligible for reductions for energy-efficient home modifications, like modern heating and cooling systems, water heaters and heat pumps.
What Equipment is Eligible?
To qualify for the reduction, the house should be the taxpayer’s primary home in the U.S.. The change needs to have a life of at least five years, with the first use beginning with the homeowner.
What Types of Improvements are Considered High-Efficiency Updates?
Typically, this tax incentive is equivalent to 10% of the price of the ensuing energy-saving improvements that achieve specific 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
- Qualified metal and asphalt roofing
- Energy-efficient exterior storm windows, skylights and storm doors
- Solar/geothermal energy products, for instance solar electricity, solar water heaters and geothermal heat pumps
Am I Limited to Claiming a Certain Amount?
Yes, there’s a lifetime limitation of $500 per property. This means if you have used this credit in past years, you should lower any credit you already claimed.
If you’ve already claimed the highest amount, you aren’t eligible for any additional incentives with this expansion.
Credit Limits for Particular Units
Credits have a limit for a couple of eligible items:
- Windows and skylights—$200
- Advanced main air circulation—$50
- Hot water boilers—$150
- Energy-efficient systems—$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 procrastinating upgrading your heating and cooling system? Reach the Experts at 239-908-6991 or contact us online. We can help you select an energy-efficient system you can earn tax benefits from the next year.