Spring is here, and that means tax season is here, too. But don’t worry, taxes don’t have to be as frustrating when you can find significant savings with energy tax credits and rebates. Already filed your 2020 taxes? You can breathe easily for 2021 knowing that the Federal Energy Property Tax Credit has been extended through the end of this year. Let Lindstrom Air Conditioning & Plumbing install this equipment in your South Florida home for greater efficiency — and more significant savings, too!
What is this tax credit?
The Non-Business Energy Property Tax Credit opportunity is a credit for existing primary residences that have installed and are operating ENERGY STAR®-rated equipment, primarily related to HVAC and plumbing, but also including home improvements like insulation, roofs, windows, and doors. This credit was initially issued for 2017 but has been extended once again through December 31, 2021. Note that new construction and rentals do not apply for this credit.
Without the use of natural gas in South Florida, you may be wondering if your household can still apply. Thankfully, if you have home comfort equipment that is ENERGY STAR® certified, you could still be eligible. Your tax credit amount is 10% of your equipment cost up to $500, or a specific amount ranging from $50 to $300.
Do air conditioners apply?
Your equipment must be recognized as ENERGY STAR® Most Efficient for tax credit eligibility with your central air conditioning. To be recognized as a Most Efficient unit, your split systems should have a Seasonal Energy Efficiency Ratio (SEER) equal to or greater than 16, and package systems should have a SEER greater or equal to 14. The air conditioners offered by our partners at Carrier all meet these requirements.
To verify your eligibility, you can ask your Lindstrom HVAC technician to provide the Manufacturer Certification Statement for the equipment you plan to purchase. This tax credit is worth $300, and you apply by filing Form 5695 with your federal tax return.
What about heat pumps?
A typical home comfort option in Florida, heat pumps are also eligible for the Non-Business Energy Property Tax Credit. Because they move heat rather than generating it, heat pumps are incredibly energy efficient and qualify for the $300 credit amount.
ENERGY STAR®-certified heat pumps should have a SEER of 15 or higher for split systems and a SEER of 14 or higher for package systems. If you are unsure if your heat pump is eligible for the credit, our expert technicians at Lindstrom Air would be happy to help you find out.
If you are ready to give your home a breath of fresh air with better energy efficiency, contact Lindstrom today at (800) 813-1824 or online to schedule a consultation for the air conditioner or heat pump option that is best for your family’s lifestyle.