I want to install a more efficient air-conditioning system to my house. Do I get any tax deductions? I live in Marietta, Georgia.

ANSWER

The BIDaWIZ Team's Answer:

Unfortunately, the energy efficient tax credits for HVAC was not extended for 2014. However, it's possible that lawmakers may reinstate the tax credit as they did in 2013. Having said that, the cost of the HVAC adds to your basis in the property. This means that if you bought the property for $250,000 and your new HVAC system cost $2,500, your basis in the home would be $252,500. This can be helpful from a tax perspective when you eventually sell your home.