As far as energy-efficient HVAC installation in Memphis, there’s great news for you this tax period.
The Residential Energy Efficient Property Credit will now go through 2020. This may qualify you for incentives for energy-efficient home enhancements, like modern heating and cooling systems, water heaters and heat pumps.
What Equipment is Eligible?
To qualify for the incentive, the home is required to be the taxpayer’s chief residence in the U.S. The improvement should work for at least five years, with the initial use originating with you.
What Kinds of Improvements are Considered High-Efficiency Updates?
Generally, this tax credit corresponds with 10% of the cost of the following energy-saving enhancements that meet specific 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
- Energy-efficient 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 home. This means if you have claimed this reduction in past years, you should reduce any credit you already claimed.
If you have claimed the top amount, you won’t qualify for any extra credits with this continuation.
Credit Maximums for Certain Items
Credits are restricted for some 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 System Today
Been procrastinating buying new heating and cooling units? Reach the Experts at 901-235-1196 or contact us online. We can help you select an energy-efficient system you can reap tax benefits from the next year.