If you plan to make any home improvements in 2017, you may be eligible for a tax break or two. Specific home improvements, or certain lines of credit that can be used for home improvements, qualify for a deduction or tax credit. As you evaluate how to spend your income tax return, work bonus, or decide to obtain financing from Hobson Plumbing & Heating, we want to help you maximize your investment.
Home Improvement Loan
You probably already know that your property taxes are usually tax-deductible, but you can also deduct the interest on a home improvement loan. The interest can be fully deductible up to $100,000, according to the IRS. It’s also possible to deduct the interest you pay on a home equity line of credit (HELOC) in most circumstances. Be sure to check with your lender and if needed your Accountant, prior to signing on the dotted line. We now offer financing so don’t hesitate to ask one of our Hobson Plumbing & Heating professionals today!
Increasing Energy Efficiency
Making a home greener offers huge incentives, including decreased energy costs and tax credits from federal, state and local governments. As noted by energyStar.gov, examples of improvements and equipment included in the federal tax credit group are:
- Biomass stoves: About $300 credit for units with a thermal efficiency rating of 75% or more
- Air source heat pumps: $300 credit
- Central air conditioning: $300 credit
- Gas, propane, or oil hot water boilers: $150 credit
- Gas, propane, or oil furnaces and fans: $150 credit for furnace, $50 for main air-circulating fan
- Insulation: Up to $500 or 10% of the cost, whichever is lower
- Roofs: 10% of the cost up to $500
- Non-solar water heaters: $300 credit
- Solar water heaters: 30% of the equipment and installation costs with no cap on amount
- Windows, doors, and skylights: 10% of the cost up to $200 for windows and skylights; up to $500 for doors
- Geothermal heat pumps: Up to 30% of equipment and installation costs
- Small residential wind turbines: 30% credit
- Residential fuel cells: 30% of the equipment and installation costs with no cap
Are you getting your home ready to sell? Some repairs can qualify as capital improvements such as:
- Replacing the roof
- Replacing windows, gutters and doors
- Replacing the furnace or HVAC system
Let the experts at Hobson Plumbing & Heating take care of your home improvement plumbing and HVAC needs today by contacting us at 630-761-3400!