The Consolidated Appropriations Act of 2015 was signed into law and extends through 2016, the tax credit for residential energy efficiency improvements.
What equipment qualifies for the credit?
High-efficiency water heaters, furnaces, boilers, heat pumps, central air conditioners, building insulation, windows, roofs, biomass stoves, and circulating fans used in qualifying gas furnaces. Please see the chart below, which details the qualifying Rheem equipment.
When does the tax credit expire?
This tax credit expired at the end of 2014, however The Consolidated Appropriations Act of 2015 retroactively renewed this tax credit effective January 1, 2015, expiring again on December 31, 2016.
What’s the maximum amount that a homeowner can receive in tax credits?
The maximum amount an eligible homeowner may receive in tax credits for improvements is $500. If you have already claimed credits of $500 or more from improvements made in 2011 or any year prior, you are ineligible to claim new credits for any new improvements made during 2012 through 2016.
Can these tax credits be applied to energy-efficient equipment purchased for a second home?
In order for purchases of high-efficiency heating, cooling and water heating equipment to be eligible for this tax credit, the equipment must be installed in a primary residence that is owned and used by the taxpayer.
- Download the proper IRS form 5695 here: https://www.irs.gov/pub/irs-pdf/f5695.pdf
IMPORTANT: This information is provided to assist in identifying applicable tax credits Rheem products, and should not be considered tax advice. Consult your tax professional to review your particular circumstances.
This is an Exceprt from Rheem “Federal Tax Credit”
