In regard to energy-efficient HVAC installation in Knoxville, there’s good news for you this tax period.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This may qualify you for credits for energy-efficient home enhancements, like modern heating and cooling equipment, water heaters and heat pumps.
What Are the Eligibility Requirements?
To be entitled for the reduction, the residence must be the taxpayer’s primary home in the United States. The change needs to last for five years or more, with the first use originating with the taxpayer.
What Types of Improvements are Regarded as High-Efficiency Updates?
Usually, this tax credit equals 10% of the price of the following energy-saving changes that meet particular 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
- Certain metal and asphalt roofing
- Energy-efficient exterior storm windows, skylights and storm doors
- Solar/geothermal energy equipment, such as 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 property. This means if you have claimed this credit in past years, you are required to reduce any credit you previously claimed.
If you’ve previously claimed the max amount, you won’t qualify for any extra credits with this continuation.
Credit Caps for Certain Items
Incentives are restricted for a few participating 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.
Upgrade Your Heating and Cooling Equipment Today
Been procrastinating getting new heating and cooling units? Call the Experts at 865-229-6176 or contact us online. We can help you choose an energy-efficient system you can earn tax benefits from the following year.