Part of the Bipartisan Budget Act that was passed earlier this year included an extension of tax credits for energy-efficient upgrades to your home. Here are some of the home improvements that qualify for a tax credit. Remember, these are tax credits, not tax deductions. In other words, you are actually receiving the full dollar for dollar benefit.
Doors, Windows & Skylights
If you replaced any windows, doors or skylights or installed new ones that meet Energy Star standards you are eligible for a tax credit for 10% of the cost, up to $200 for windows & skylights and up to $500 for doors. This does not include labor needed for installation.
Roofs (Metal and Asphalt)
Qualifying roofing materials include metal roofs with appropriate pigmented coatings and asphalt roofs with qualified cooling granules.
Tax credit: 10 percent of the cost, not including installation, up to $500
Heating, Ventilation and Air Conditioning
Central Air- $300 Tax Credit
Air-Source heating pumps $300
Gas, Propane or oil boiler- $150
Natural Gas, propane or oil furnace- $150
Perhaps the biggest tax credits offered involve solar energy systems, fuel cells, small wind turbines and geothermal heat pumps that were extended to 2022.Existing homes and new construction qualify, as do principal and secondary homes. Although the credit currently sits at 30%, it will start to gradually decrease beginning in 2020. It’s a good time to take advantage of the solar credit before it decreases to 22% by 2022. Also, many states such as New York offer attractive solar credits. A chance for a HUGE savings!
Tax Credits: 30% for systems place in service by Dec 31, 2019
26% for systems place in service after Dec 31, 2019 and before Jan 1, 2021
22% for systems place in service after Dec 31, 2020 and before Jan 1, 2022
To claim the credit, you’ll need to file form 5695 “Residential Energy Credits” with your taxes. Be sure to consult with us or your accountant for further clarification on to what qualifies for these attractive credits.
Keith Boyer, CPA