February 25th, 2010
Tax Credits for Replacing Heating and Cooling Systems
Tax Credits for Replacing Heating and Cooling Systems
By: Rob Jordan
Upgrading to an energy-efficient heating and cooling system can save hundreds on your utility bills and earn you a tax credit worth as much as $1,500.
Replacing an aging heating and cooling system can save you money over time. According to Energy Star, a federal program that promotes energy efficiency, about half of what the average household spends on energy bills goes toward heating and cooling.
Upgrading your heating, ventilation, and air conditioning (HVAC) to energy-efficient units can cut utility costs by about 20%, or $200 annually, on average. A tax credit for heating and cooling systems can make the project more affordable.
You’re going to enhance a home’s saleability by moving to a more energy-efficient heating and cooling system. That doesn’t mean adding a $5,000 furnace will add $5,000 to the sale price. Rather, potential buyers are less likely to push for repairs or negotiate a credit if the HVAC is in good shape.
GETTING TAX CREDIT FOR YOUR UPGRADES
The federal energy tax credit is based on 30% of the cost of an eligible HVAC system. Installation charges count too. A $5,000 bill would max out the credit. You’ll need to owe more in taxes than you’re trying to claim in credits to qualify. Use IRS Form 5695. Save receipts for your records, as well as manufacturers’ certification statements. If part of a new HVAC system qualifies for the credit but another part doesn’t, ask the contractor to itemize the receipt.
Only improvements to your existing primary residence count.
This article provided by Rob Jordan, energetic Realtor specializing in Agoura, Oak Park and Westlake Village. He can be reached at 818 237 4425, or Email Rob.
Rob Jordan
tel 818 237 4425
fax 818 332 7051
www.robjordanhomes.com
Email Rob
EwingSIR does not guarantee information contained in this blog, readers are encouraged not to rely solely on this information and to do their own independent research of facts contained herein. Blog information was obtained from independent sources that we do not endorse, and we do not investigate this information for accuracy.
- Rob Jordan
Posted by Rob Jordan on February 25th, 2010
