How to Get the Residential Energy Efficiency Property Credit in Alliance in 2020

As far as energy-efficient HVAC installation in Alliance, there’s fantastic news for your family at tax time.

The Residential Energy Efficient Property Credit has been extended through 2020. This might entitle you to credits for energy-efficient home modifications, like new heating and cooling systems, water heaters and heat pumps.

What Equipment is Eligible?

To be entitled for the credit, the home should be the taxpayer’s primary house in the USA. The improvement must last for a minimum of five years, with the first use starting with the taxpayer.

What Varieties of Changes are Considered High-Efficiency Updates?

Generally, this tax incentive corresponds with 10% of the cost of the subsequent energy-saving improvements that meet certain ENERGY STAR® requirements:

  • Advanced main air-circulating fans
  • Energy-efficient gas, propane or oil furnaces
  • Energy-efficient gas, propane or oil hot water boilers
  • Energy-efficient heat pumps
  • Energy-efficient water heaters
  • Energy-efficient central air conditioners
  • Insulation
  • Qualified metal and asphalt roofing
  • Certain exterior storm windows, skylights and storm doors
  • Solar/geothermal energy products, like solar electricity, solar water heaters and geothermal heat pumps

Is There a Maximum Amount I Can Claim?

Yes, there’s a lifetime maximum credit of $500 per home. This means if you have taken this incentive in past years, you must lower any credit you already claimed.

If you have claimed the highest amount, you aren’t eligible for any additional credits under this extension.

Credit Maximums for Particular Items

Incentives are limited for certain eligible equipment:

  • Windows and skylights—$200
  • Advanced main air circulation—$50
  • Hot water boilers—$150
  • Energy-efficient units—$300

If you have questions about how you can benefit from the extension of the residential energy efficient property tax credit, download Form 5695 or contact your tax advisor for assistance.

Enhance Your Heating and Cooling System Today

Been putting off installing new heating and cooling system? Reach the Experts at 330-235-1260 or contact us online. We can help you find an energy-efficient system you can reap tax benefits from the next year.