Tax Day is here! Have you already filed your return this year, or will you be scrambling at the last minute to make the deadline? Either way, don’t forget your heating and cooling system when considering any improvements you made in 2018. Taxpayers who upgraded their HVAC system or used renewable energy during the calendar year could be eligible for a tax credit that will offset some of the costs.
Read on to learn more about the HVAC tax credits homeowners could be eligible for when filing their 2018 taxes. Contact an HVAC contractor in Visalia, CA to learn more!
HVAC tax credits
First, some bad news: the HVAC tax credits that could once be applied to many high-efficiency HVAC equipment have now expired. Previously, homeowners could get a $150 to $300 tax credit for installing a high efficiency furnace, air conditioner, boiler or air source heat pump. That credit expired at the end of 2017. However, homeowners can apply for HVAC tax credits for 2018 that focus on renewable energy systems, including geothermal heating and cooling equipment in addition to other alternative energy systems.
The following improvements are eligible:
Solar panels or photovoltaics used for generating electricity.
Solar-powered water heating equipment. The water heated by the system must be used inside the home, and at least half the home’s water-heating capacity must be solar.
Geothermal heat pumps that comply with federal Energy Star guidelines.
Fuel cells using renewable resources, such as hydrogen, to generate power. The equipment needs to generate a minimum of 0.5 kilowatts of power to qualify.
The improvements must be installed on a home you own and use as a residence. Second homes also qualify, but rental homes are not applicable. This credit is equal to up to 30 percent of the total cost of the purchase and installation of solar, wind and geothermal equipment. Fuel cell systems could be eligible for a credit of a maximum of $500 per half-kilowatt of power capacity. These tax credits will be available through 2021.
Your HVAC contractor in Visalia, CA can help you determine whether any previous installations are applicable and, if so, how much of the cost you can expect to recoup. Homeowners will then have to file IRS form 5695 if they meet the eligibility criteria.
Why invest in HVAC improvements?
Investing in any of these improvements can help you save significantly on your annual taxes. In addition, these heating and cooling methods are also safer for the environment. These HVAC systems reduce harmful emissions and greenhouse gases, which is crucial to protecting the ozone layer and the environment.
Ready to learn more about improving your home with any of these HVAC additions? Contact McGee Refrigeration today to speak to one of our expert technicians about upgrading to a renewable energy system. We’ll use our more than 35 years of experience in providing HVAC services in Visalia, CA to identify the best HVAC solutions for your home, lifestyle and budget. Give us a call today to get started!