Bounds Heating and Air, your go-to contractor for HVAC maintenance, can help you prepare for the upcoming tax season. Read on as we discuss the tax credit requirements:
Ineligible HVAC Upgrades
If you haven’t heard, the Residential Energy Efficiency Tax Credit expired back on December 31, 2017. This popular residential energy tax credit helped you get back 10% of the cost of a qualifying product, with a cap of $500. This applies to purchases made from 2011 to 2017, and includes the following HVAC systems:
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Central Air Conditioner
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HVAC Air Circulating Fan
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Natural Gas, Propane or Oil Furnace
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Electric Heat Pump
You might still qualify for tax breaks if your equipment was installed before 2018 and meets the technical efficiency standards set by the Department of Energy. As your trusted HVAC repair expert, we recommend consulting a CPA to aid you in this process.
Eligible HVAC Upgrades
When you upgrade your HVAC units to make use of renewable energy, you can qualify for a tax credit to compensate for some of the costs. The Residential Renewable Energy Tax Credit is still available until December 31, 2021. It covers systems that use solar, wind, geothermal, and fuel-cell technology. It returns 30% of the total cost to the homeowner, including installation, though this percentage will decrease over the next several years.
Choose Energy-Efficient HVAC Systems
While most HVAC systems are no longer covered by tax credits, you can still offset the overall cost when you install products with the ENERGY STAR® seal. They use 30% less energy than standard units, which not only saves you money but also contributes to a better environment.
