The Bipartisan Budget Act of 2018 was signed into law early last year, and among the additional tax policies it enforced are new residential tax credits for making your home more energy efficient. While these do include minor remodeling projects such as installing replacement windows and doors the majority of the policies revolve around ENERGY STAR®-certified HVAC systems.
If you’ve recently upgraded your plumbing or heating and air conditioning systems, you may be entitled to some credits on your tax return. You can check the full list on the ENERGY STAR website, but our experts at McLay have provided you with a short CliffsNotes version below:
Geothermal Heat Pumps
Following the nation’s gradual switch to more renewable energy sources, the BBA provides federal tax credits for homes that have recently installed a geothermal heat pump. These versatile systems use temperature differences in the ground to meet your home’s heating and cooling needs, similar to how regular heat pumps use the outdoor air.
The tax credits for a geothermal heat pump have no upper limit; you may qualify to get back up to 30% of the total cost of your installation.
Non-Solar Water Heaters
As far as plumbing, heating and air conditioning system upgrades are concerned, new water heaters have been showing promise in energy efficiency. To qualify for up to a $300 credit on your taxes, you must have a gas, oil or propane heater with a 90% or higher thermal efficiency rating (0.82 energy factor). For electric heaters, units with an energy factor of 2.0 or higher may qualify.
Claiming Tax Credits
Our professionals are more than happy to walk you through the credits that your plumbing and HVAC systems may qualify for this year. In addition, we can also help you with all the necessary requirements, such as the Manufacturer’s Certification Statement, along with all relevant bills and receipts to help make the process go as smoothly as possible.
Saving You Money on Your HVAC and Plumbing Since 1978
At McLay Services, we’re your leading provider of plumbing, heating and air conditioning systems and services. Give us a call at (909) 326-6106 or fill out our online contact form to schedule a service visit today. You may also get a free estimate for new installations.