How to Get the Residential Energy Efficiency Property Credit in Birmingham in 2020
As far as energy-efficient HVAC installation in Birmingham, there’s fantastic news for your family this tax period.
The Residential Energy Efficient Property Credit has been lengthened through 2020. This can make you eligible for credits for energy-efficient home modifications, like new heating and cooling equipment, water heaters and heat pumps.
How Do I Know if My Equipment Qualifies?
To become eligible for the reduction, the residence should be the taxpayer’s primary residence in the U.S. The improvement should work for a minimum of five years, with the original use beginning with the taxpayer.
What Kinds of Improvements are Eligible to be High-Efficiency Updates?
Generally, this tax reduction is equivalent to 10% of the expense of the ensuing energy-saving improvements that achieve particular 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
- 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
Is There a Limit to How Much I Can Claim?
Yes, there’s a lifetime limitation of $500 per home. This means if you have taken this reduction in previous years, you should reduce any credit you already claimed.
If you’ve previously claimed the maximum amount, you won’t be eligible for any additional incentives with this extension.
Credit Caps for Certain Units
Incentives are restricted for a few participating equipment:
- 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.
Improve Your Heating and Cooling Units Today
Been procrastinating getting new heating and cooling equipment? Reach the Experts at 205-267-0023 or contact us online. We can help you choose an energy-efficient system you can reap tax benefits during the upcoming year.
