2016 Federal Tax Credits
2016 Federal Tax Credits
We know that purchasing a new air conditioner, furnace or water heater may not be the coolest purchase you made this year. We know you probably would have rather spent your money on a trip or that new TV, but sometimes the universe just doesn’t listen. We at Godby Heating Plumbing Electrical are here to help try and make the best of a situation. Ok, so maybe you aren’t going to drag your friends down to check out your new furnace and rave about how it’s the coolest thing ever, but did you know that there are federal tax credits for residential energy efficiency in 2016? A little money back in your pocket may not mean you can go on a trip, but maybe you can at least get a new pair of sunglasses from that tax credit!
The tax credits are available for certain purchases you made in 2016 and they are even retroactive to some purchases that you may have made in 2015. Look around and if you see that ENERGY Star label on a product you have recently purchased, you may be in luck! I know, I know, you are thinking, “So, get to the good stuff! Tell me the 411! It’s already August! I need that tax credit.”
Ok, already! Here is the information you will need. First, the purchase must be made or have been made for an existing home (no imaginary homes) and in some cases it must be your principal place of residence. If you have any other questions like, “Are mobile home owners eligible?” or “Can I get a tax credit for my second home in Hawaii?” you can find most of those answers here.
There are three different categories that your purchase may fall under for the 2016 Federal Tax Credits. ALL of them expire December 31, 2016.
1. Tax Credit: 10% of cost up to $500 or a specific amount from $50-$300
This ENERGY Star purchase must be in an existing home and that home must be your principal residence. They do not allow tax credits on new construction or rentals in this category.
ENERGY Star products: Tax credits may be available for your biomass stove; air source heat pump; central air conditioner; gas, propane or oil hot water boiler; gas propane or oil furnace and fan; insulation; roofs; non-solar water heaters; and windows, doors and skylights.
2. Tax Credit: 30% of cost with no upper limit
In this category, the purchase must be in/for an existing home and new construction does qualify. Also, both principal residences and second homes qualify, but sadly rentals do not.
ENERGY Star products: Tax credits may be available for geothermal heat pumps; small wind turbines (residential); and solar energy systems. Solar energy systems get the V.I.P. treatment because tax credits are available for them at 30% through December 31, 2019.
For the last category, the purchase must be for an existing home and new construction. This must be your principal residence. No dice in this category to rental or second homes.
3. Tax Credit: 30% of cost with no upper limit
ENERGY Star product: Tax credits may be available for residential fuel cells and microturbine systems.
All of this information was found on the energystar.gov website. Not only are there tax credits for the systems in your home that help condition the air, but there are tax credits for more than 70 different categories. The website is easy to use. You can find out possible tax credits for a specific product and find ENERGY Star deals near you.
And exactly how do you apply for that tax credit on your new HVAC system that Godby put in for you? Well, you will need to file the 5695 form with the IRS and submit it with your taxes. You must also make sure you hold on to your receipt and the Manufacturer’s Certification Statement for your records. This certification states that the product you are submitting for the tax credit qualifies for said tax credit. Luckily, the manufacturer should have these certifications on their website. Otherwise, you will need to contact the manufacturer to receive a certification.
Be cool by getting yourself a federal tax credit just for being energy efficient. What’s even cooler than cool? Be a Club Godby member and receive discounts and priority scheduling. Club Godby gets you V.I.P. treatment for any Joe Schmoe or Jane Doe. For all of your heating/cooling, plumbing and electrical needs remember, “It’s Gotta be Godby!”