Don't Miss Out on End-of-Year Tax Credits
December 01, 2020
Don’t Miss Out on End-of-Year Tax Credits
Give your family the gift of comfort this holiday season, and give your wallet a little gift, too! When you invest in ENERGY STAR®–rated equipment for your New Jersey home before the end of the year, you may be eligible to receive a credit on your 2020 tax return. A.J. Perri Plumbing, Heating and Cooling has rounded up a list of equipment and home improvements that qualify for a federal tax credit of 10 percent of your cost (up to $500) or a specific credit amount.
Furnaces and fans
If your home has a gas furnace that is ENERGY STAR® certified, it should qualify for a $150 furnace tax credit. Gas and oil furnaces that have earned this certification will also include fans that meet tax credit requirements. In order to be ENERGY STAR® certified, your furnace should have an Annual Fuel Utilization Efficiency (AFUE) of 95 or greater.
Hot water heaters and boilers
Tax credits are also available for gas water heaters or water boilers, as well as electric heat pump water heaters. Did you know that water heaters account for 12 percent of the energy consumed in your home? Specific gas water heaters and most certified electric water heaters should be eligible for a $300 tax credit, and ENERGY STAR® Most Efficient gas-powered boilers may receive a $150 tax credit (including installation costs).
Central air conditioning
Your central air conditioning system could be tax credit eligible if it is recognized as ENERGY STAR® Most Efficient. In order to apply for the credit, you’ll need to work with your HVAC contractor to provide a Manufacturer Certification Statement for the equipment you purchase. As a Carrier Factory Authorized Dealer, the experts at A.J. Perri offer our customers a wide range of air conditioning systems that are energy-efficient with a 100% satisfaction guarantee!
Air source heat pumps
If you have an air source heat pump, you could receive a tax credit of up to $300. In order to be eligible with a split system, your heat pump should run at a Heating Seasonal Performance Factor (HSPF) of 8.5 or greater, Energy Efficiency Ratio (EER) of 12.5 or greater and Seasonal Energy Efficiency Ratio (SEER) of 15 or greater. For package systems, your HSPF should be 8 or greater, EER of 12 or greater and SEER of 14 or greater.
Other home improvements
You also may be eligible for an ENERGY STAR® tax credit if your home has a biomass stove, or specific insulation, roofing, windows, doors or skylights that are considered energy-efficient. Also note that your home is only eligible for a tax credit if it is your existing principal residence; rentals and new construction homes do not apply.
If you have questions about the ENERGY STAR® program or would like to schedule an installation before the end of 2020, contact A.J. Perri today at (732) 733-2548 or schedule a consultation online. We’d be honored to help keep your family comfortable at home this holiday season.
Last Updated: September 13, 2023