How to Earn the Residential Energy Efficiency Property Credit in Gainesville in 2020
When it comes to energy-efficient HVAC installation in Gainesville, there’s great news for you this tax season.
The Residential Energy Efficient Property Credit has been extended through 2020. This could entitle you to credits for energy-efficient home improvements, like updated heating and cooling systems, water heaters and heat pumps.
How Do I Know if My Equipment Qualifies?
To be entitled for the credit, the house is required to be the taxpayer’s main residence in the United States. The improvement should have a life of at least five years, with the first use beginning with the taxpayer.
What Varieties of Changes are Considered High-Efficiency Renovations?
Typically, this tax reduction corresponds with 10% of the price of the ensuing energy-saving improvements that match particular ENERGY STAR® conditions:
- 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
- Particular exterior storm windows, skylights and storm doors
- Solar/geothermal energy products, like solar electricity, solar water heaters and geothermal heat pumps
Is There a Limit to How Much I Can Claim?
Yes, there’s a lifetime maximum credit of $500 per home. This means if you have used this credit in previous years, you should decrease any credit you claimed earlier.
If you’ve previously claimed the max amount, you won’t be eligible for any additional incentives under this extension.
Credit Caps for Specific Equipment
Credits are limited for a couple of qualified items:
- 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.
Enhance Your Heating and Cooling Equipment Today
Been putting off installing new heating and cooling units? Call the Experts at 352-414-4006 or contact us online. We can help you select an energy-efficient system you can earn tax benefits from the following year.
