The holidays are over and another new year begins, which means tax time is just around the corner. Don’t miss out on significant homeowner write-offs you can claim for your HVAC system. The new home energy savings act has been extended and upgraded for residential, commercial and home builders. If you bought a new air conditioner or furnace in the last couple of years this will directly impact you.
Energy Tax Credits
Energy efficiency improvements in your home can not only decrease your utility bills and improve your indoor comfort… but can put may add cash back into your pockets at tax time. Most home energy tax credits expired in 2017 but recently the residential energy efficiency tax credit was reinstated and retroactive to 2018. Qualified HVAC improvements are eligible to claim 10 percent of the installed costs, with a maximum credit of $500. Potentially the Home Energy Savings Act could be extended to 2026 with a lifetime cap increase to $1200! This is exciting news for homeowners who made the choice to improve the efficiency of their homes with a new HVAC unit(s). Read below to learn more about which equipment qualifies.
What equipment qualifies?
Homeowners can still reference the 2017 eligible equipment list even though it may be tweaked a bit.
- Electric heat pumps (link)
- Electric heat pump water heaters
- Air conditioning systems (link)
- Water heaters
- Natural gas furnaces (link)
- Natural gas boilers
- Commercial business owners, this also applies to your properties!
If you own a commercial building and have improved the energy efficiency of your buildings by installing a new heating and cooling equipment in the past 2 years, make sure to claim your deductions.
Resources
Fill out your form 5695 for residential energy credits this year when you file. If you’re looking to replace your heating & cooling system soon be sure to let Bunn’s & Bennett provide you with an in-home estimate. Upgrading HVAC efficiency has an immediate impact on your utility bills and now with the tax credits… it can save you even more.
