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energy efficiency tax creditThe tax filing deadline will be here before we know it, but before you file yours, it’s important to know that you may be eligible for a tax credit based on a recent HVAC system purchase! Because of the recent reinstatement of H.R.1865 and H.R.1158, if you had your system replaced in 2018 and 2019 with a product that is on the eligibility list, you may be able to take a tax credit (not a refund) on that purchase. The HVAC experts at Clay’s Climate Control have broken down some important tax credit information that will help you determine if your new system may be eligible.

Enjoy a Tax Credit If You’ve Improved Your Home’s Energy Efficiency

Thanks to a provision in Section 25C of the Federal Tax Code, homeowners who invested in HVAC work that improves their home’s energy efficiency may be entitled to a tax credit! According to this provision, homeowners in this category would be able to claim 25C tax credits that equal 10% of the installation costs, and a maximum tax credit of $500. Plus, a higher efficiency system also means that you will enjoy long term savings on your family’s energy usage. It is important to note that this will expire on December 31, 2020.

Receive a Tax Deduction If You’ve Enhanced Your Commercial Building’s Energy Efficiency

The reinstatement of Section 179D states that commercial buildings that have enhanced their facility with energy efficient systems will be eligible for tax deductions. If you are a commercial building owner who has improved it with energy efficient savings, you won’t just be able to file for a tax deduction in this category, but you will also enjoy significant savings on your building’s operating costs!

These Provisions Will Also Benefit the Home Services Industry

While homeowners and business owners will undoubtedly be excited about these benefits, the benefits of these provisions do not stop there — they will also help create and protect the jobs of American workers! Additionally, these provisions will help lead the US to more energy independence.

While we recommend talking to your tax accountant to help determine your status of eligibility in regards to the aforementioned provisions. If you learn you are eligible — and need any purchasing paperwork from Clay’s Climate Control — please feel free to contact us! Don’t have an energy efficient system yet? Don’t worry! 2020 is an awesome time to consider purchasing new, eligible HVAC equipment, so you can take advantage of this tax credit and get a more energy efficient system installed. Call us today to get a complimentary estimate and proposal.

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