Tax credits reduce the amount of income tax you owe to the Fed or the state of Illinois.
Credits are generally designed to encourage or reward certain types of behavior that are considered beneficial to the economy or the environment. Did you make any of the improvements listed below in 2019? If so, you can claim the credits by filing Form 5695 with your tax return according to Turbo Tax. The renewable energy tax credits are good through 2019 and then are reduced each year through the end of 2021. Please consult a tax professional for assistance. Hobson Heating & Plumbing is here to assist with identifying which products you purchased from us are eligible for tax credits.
5 Residential Renewable Energy Tax Credit Qualifiers
- Solar-powered water heaters. The water heated by the system must be used inside the home, and at least half of the home’s water-heating capacity must be solar. (Solar heaters for swimming pools and hot tubs do not qualify.)
- Solar panels, or photovoltaics, for generating electricity. The electricity must be used in the home.
- Wind turbines that generate up to 100 kilowatts of electricity for residential use.
- Geothermal heat pumps that meet federal Energy Star guidelines.
- Fuel cells rely on a renewable resource (usually hydrogen) to generate power for a home. The equipment must generate at least 0.5 kilowatts of power.
Eligible Equipment and Materials
The first is “qualified energy efficiency improvements,” and it includes:
- Home insulation
- Exterior doors
- Exterior windows and skylights
- Certain roofing materials
The second category is “residential energy property costs.” It includes:
- Electric heat pumps
- Electric heat pump water heaters
- Central air conditioning systems
- Natural gas, propane or oil water heaters
- Stoves that use biomass fuel
- Natural gas, propane or oil furnaces
- Natural gas, propane or oil hot water boilers
- Advanced circulating fans for natural gas, propane or oil furnaces.
If you’re interested in replacing or installing any of the items listed above in order to increase energy savings for the current year, contact Hobson Plumbing and Heating today to schedule an appointment.