In regard to energy-efficient HVAC installation in Shreveport, there’s great news for you at tax time.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This could entitle you to incentives for energy-efficient home enhancements, like modern heating and cooling equipment, water heaters and heat pumps.
How Do I Know if My Equipment Qualifies?
To be entitled for the incentive, the residence should be the taxpayer’s chief residence in the United States. The improvement should have a life of a minimum of five years, with the initial use beginning with the homeowner.
What Types of Changes are Eligible to be High-Efficiency Updates?
Typically, this tax credit equals 10% of the expense of the following energy-saving improvements that meet specified 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
- Insulation
- Certain metal and asphalt roofing
- Energy-efficient exterior storm windows, skylights and storm doors
- Solar/geothermal energy solutions, like solar electricity, solar water heaters and geothermal heat pumps
Is There a Maximum Amount I Can Claim?
Yes, there’s a lifetime cap of $500 per home. This means if you have claimed this incentive in past years, you are required to decrease any credit you claimed earlier.
If you’ve previously claimed the top amount, you won’t qualify for any extra incentives under this continuation.
Credit Caps for Particular Items
Tax reductions are restricted for a couple of 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 installing new heating and cooling units? Call the Experts at 318-588-8163 or contact us online. We can help you select an energy-efficient system you can earn tax benefits from the following year.