In regard to energy-efficient HVAC installation in Denver, there’s great news for you this tax period.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This could entitle you to incentives for energy-efficient home improvements, like updated heating and cooling units, water heaters and heat pumps.
What Makes My Purchase Eligible?
To become eligible for the reduction, the residence should be the taxpayer’s chief house in the United States. The improvement should have a life of at least five years, with the original use originating with the homeowner.
What Varieties of Improvements are Regarded as High-Efficiency Renovations?
Typically, this tax reduction corresponds with 10% of the price of the subsequent energy-saving changes that achieve 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
- Particular metal and asphalt roofing
- Certain 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 maximum credit of $500 per location. This means if you have claimed this reduction in prior years, you must lower any credit you previously claimed.
If you have claimed the maximum amount, you aren’t eligible for any additional credits under this extension.
Credit Limits for Particular Items
Credits are restricted for certain qualified solutions:
- 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.
Improve Your Heating and Cooling Equipment Today
Been procrastinating buying new heating and cooling units? Reach the Experts at 303-647-5853 or contact us online. We can help you find an energy-efficient system you can earn tax benefits from the following year.