It’s the beginning of the year and that means tax season. If you were one of the many homeowners who chose to invest in their home, then chances are you will do well this tax season, especially if you had a major heating system replacement. If you did install a new heating system, not only will you save money on your future heating bills, but you may be eligible for a tax rebate from the federal government.
On Dec 31, 2011, the federal tax credit expired, but many heating products that you purchased for your home in 2011 are still eligible. One thing to note is that the $500 credit is for your lifetime. This means that any heating system related product that you purchased from 2006 through 2010 count towards this lifetime credit. So, if you spent $200 in 2008 and another $300 in 2011 you would have maxed out your credit after claiming the $300 on your 2011 taxes.
There are a number of appliances and heating equipment that will earn you a credit and the official IRS website contains a detailed list, but some items include:
- Any water boiler system that uses oil, propane or natural gas fuel.
- High efficiency fans that circulate air within heating ducts.
- Any type of heat pump that moves air throughout the home to increase efficiency.
In order to claim your credit you will have to file IRS form 5695 in addition to your regular tax forms.
Remember that Wm. Henderson Plumbing and Heating not only has 35 years of experience in heating services, but we also have 35 years of experience saving you money. If you have any questions about potential tax credits related to newly installed heating systems give us a call and let us help you get back what you can this tax season.