Big HVAC Tax Credit for Homeowners
Save Money when Improving Efficiency in your Home
Big Benefits For Upgrading Your Furnace or AC
Ask any of our Hanna technicians and we can give you a whole list of benefits you’ll see from improving your heating and cooling systems. Not just for energy efficiency, but you’ll also receive financial benefits. Well, now we have 1 more benefit to add to the list – a HUGE TAX CREDIT.
The government has announced they are extending homeowners a tax credit for taking certain steps to make their home more energy efficient. A tax credit is currently available for homeowners who have had a qualified HVAC system or product installed in their home.
Great news: You still have the rest of this year to take advantage of this federal tax credit!
How Big are the Savings?
Since there are a few different opportunities to get a credit, the answer of how much you’ll save varies. Depending on the qualifying system or unit you have had installed (or will be getting installed), you are eligible for tax credits of up to $500!
You can see the details of the eligible items here and what amount each qualifies for in this list. Some products qualify you for 10% of the cost up to $500. Other items will qualify you for a tax credit of specific values from between $50 to $300.
What Do You Need to Have Installed?
Because this is a Federal Energy Tax Credit designed to encourage homeowners to increase the efficiency of their homes, the qualifying items are those that are very energy efficient. Your opportunity to save money with this deal is because you took the necessary steps to help save energy.
The tax credits available here are only for HVAC systems or units (referred to as “property” in the government’s description) that are installed or “placed in service” in a residence. This is only for systems installed in homes; this specific tax credit is not for businesses.
The products that qualify you for this tax credit have specifications regarding their level of energy efficiency. It includes air conditioners with a high SEER rating. Central air conditioner systems qualify for a credit of up to $300. For heating units, look for a furnace or boiler with an AFUE rating of 95 or higher. Installing a propane, natural gas or oil furnaces and boilers can qualify you to receive a saving of as much as $150.
To qualify, the products can’t just be purchased, they must be installed in your home. For the full list of the specific type of products that qualify for this credit and how much money each item qualifies for, refer to the property tax credit list on EnergyStar.gov.
If you need help or information on the process to apply for a federal tax credit, go to Energy Star’s Tax Credit page. You can also find links on that page for various tax forms and IRS contact information.
When is the Deadline to Get the Credit?
Good news. You have the rest of this year (December 31, 2020) to take advantage of this savings. If you’ve already been considering getting a new furnace or air conditioner within the next couple of years, this is an excellent reason why you should prioritize that home upgrade before the year is over.
Did you just get a new system installed? Don’t worry – you may still qualify for this credit! This tax credit isn’t just for installations done in 2020, this tax credit is retroactive back to 2018. Therefore, if you purchased and had installed any of the items on the list of qualified products within the last 2 years, you can still apply for these savings.
Related Tax Credits to Homeowners
In addition to this tax credit for various energy-efficient heating and cooling units, there are other home improvement products that qualify for a credit. New insulation, roofs, windows and doors are some of the other items that are included. Refer to the list to make sure what you purchase qualifies.
Ready to Upgrade your Home?
Take advantage of this tax credit before it’s too late! Call us at Hanna Heating & Air Conditioning by calling (316) 945-3481. We have three convenient locations to serve the entire Wichita area, including Newton and Andover. Our team of experienced heating and cooling technicians can upgrade your home’s comfort with a new furnace or air conditioner in time to take advantage of this tax credit.
With a new efficient unit, not only will you experience a great level of consistent comfort in your home, you can expect to see savings every month. Systems that operate efficiently use less energy, which can save you money on your energy bills. Simply put: There are so many reasons why now is the time to upgrade an old or poorly-functioning HVAC system.
Request more information on how a new heating or cooling unit can benefit you online or by calling us at (316) 945-3481.
While we can address any problem or question you have about heating and air systems, remember that we are HVAC experts, not tax experts. For questions on who can qualify and for instruction on applying for tax credits, consult a tax professional.