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Important HVAC Tax Tips To Remember When You File This Season

Important HVAC Tax Tips To Remember When You File This Season

If you’ve been focusing on making home improvements and creating a more energy efficient living space, you may get more back than just a slash in your utility bills. Many Buford area HVAC corporations have partnered with state and government agencies to offer tax breaks and incentives to homeowners who buy specific qualifying products. Here are some tax tips to know before you make a heating and cooling purchase to ensure you’ll see a savings at tax time.

Your Furnace And Air Conditioning Unit Must Have An ENERGY STAR Rating

Before you decide to make your final purchase on a new furnace and air conditioner unit, check the energy star rating. In order to qualify for a tax deduction, you’ll have to buy a unit that contains an ENERGY STAR endorsement. This will allow you to qualify for the Residential Energy Tax Credit. You will need to ask your HVAC installer for the Manufacturer’s Certification Statement to include for your permanent records. On your 1040, use form 5695 to complete the information needed for the credit.

Additional Green Energy Products

If you are looking to save even more on energy costs, you may want to consider adding the following to your heating and cooling whole-house system:

  • Solar energy
  • Wind turbines
  • Geothermal heat pumps

Solar energy systems, including solar panels or photo voltaic systems and solar hot water heaters work in conjunction with your existing heating and cooling systems to cut usage down considerably. These units must be certified by the solar rating and Certification Corporation or SRCC in order to qualify.

Small wind turbines allow you to use kinetic energy from the wind to supply your home’s electrical system. You can receive a tax credit on installation costs only.

Having a geothermal system working alongside your traditional furnace can allow you to reap some rewards at tax time. If you install a geothermal heating system and heat pump in your home, you may apply for a tax incentive.

Swap Out Your Old Hot Water Tank

Even if your gas hot water heater is only a few years old, there are new high efficiency tankless models that can save you more money in the long run. Switching out a hot water tank to a tankless model will cut hundreds of dollars on your overall utility costs over the next 12 months. Keep in mind that the maximum amount you can claim for a hot water tank credit is only $300.00.

Weatherproof Your Home For More Tax Breaks And Money Savings

You can also add up the overall costs of weatherproofing your home for the year. Certain things that are covered include:

  • Weatherstripping
  • Caulking
  • Installing new windows and doors
  • Insulating your entire home and basement or crawlspace

Not only can you itemize these items when you file your taxes, contact your gas and electric company to uncover tax breaks and rebates that will stretch your dollar further.

There are many tax tips to take advantage of when you file for both your state and federal taxes and Casteel Heating, Cooling And Plumbing’s team of professionals has the answers to your HVAC tax related questions.