Pssttt! Hey you! You might qualify for a tax credit of $500 or even $1,000+! Even though the tax deadline has been extended, it’s never too early to start saving …
Do you have any HVAC products that are Energy-Star-certified, or any renewable energy systems? If your answer to either one of these questions is yes, then you DO qualify.
If you’re not sure, we’ll explain more, so keep reading!
One of the reasons you may not be so sure that you qualify for an energy tax credit is because you’ll occasionally see things online that say, “The energy-efficiency tax credit only applies for the year 2018,” or that it expired December 31, 2018.
So if you installed new energy-efficient equipment in 2019, you may be thinking that you missed the boat, and that this tax credit no longer exists.
But here’s a trade secret for you: These tax credits were just EXTENDED!
In January, it was announced that the energy-efficiency tax credits were extended through December 31, 2020.
However, that doesn’t mean that you should be putting off claiming these credits until your tax return is filed next year … or the year after … etc. Why?
Well, as you might imagine, you DO have to claim the credits in the same year that you actually installed the energy-efficient equipment. This is true whether your equipment is just Energy-Star-certified, or is actually renewable energy equipment. (Examples of renewable energy equipment include geothermal heat pumps and solar power.)
So, can you still get the energy tax credit if you installed your system, say, two years ago?
Well, you can’t claim it on this year’s tax return, but you can file an amended return for the year you installed the equipment. (Note: You may want to enlist the assistance of a tax preparer.)
Now that we’ve established exactly how, if, and when you should go about trying to claim these credits, let’s take a quick look at exactly how AWESOME these credits are!
First, here are a couple examples of Energy-Star-certified products:
If you just installed a gas furnace last year that is Energy-Star-certified, you get $150 in credit.
If you installed an efficient air conditioning system, you get $300 in credit.
Other home improvements will get you more credit, such as insulating your home. If you’ve made your home more efficient by adding house wrap or other weather-stripping and sealing solutions, you can recoup 10% of the cost of your job, up to $500.
As you can probably imagine, though, the home improvements that will get you the most credit are renewable energy systems.
For systems installed:
After December 31, 2016, but before January 1, 2020 = 30% credit
After December 31, 2019, but before January 1, 2021 = 26% credit
After December 31, 2020, but before January 1, 2022 = 22% credit
And of course, it’s still true that if you’re trying to get credit for an installation you did before 2019, then you will have to file an amended tax return for that year.
As you can imagine, the current amount of a 26% credit can be a significant amount … depending on what you spent installing your renewable energy equipment. It could actually be thousands of dollars!
Whether you’re going to save a lot, or a more modest amount, it’s definitely worth applying for these credits. It’s very easy to do! In fact, here’s a link to the instructions for the form.
We love saving our customers money in any way we can. That’s why, not only do we offer for you deals and discounts of our own, but we’ll always let you know about other money-saving opportunities!