How to Earn the Residential Energy Efficiency Property Credit in Tempe in 2020

In regard to energy-efficient HVAC installation in Tempe, there’s fantastic news for you this tax period.

The Residential Energy Efficient Property Credit will now go through 2020. This may qualify you for incentives for energy-efficient home improvements, like new heating and cooling equipment, water heaters and heat pumps.

What Are the Eligibility Requirements?

To be entitled for the reduction, the residence must be the taxpayer’s main home in the United States. The change needs to have a life of a minimum of five years, with the original use originating with the homeowner.

What Kinds of Enhancements are Qualify for High-Efficiency Renovations?

Usually, this tax reduction is equivalent to 10% of the price of the subsequent energy-saving improvements that match specified ENERGY STAR® guidelines:

 

  • 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
  • Certain metal and asphalt roofing
  • Energy-efficient exterior storm windows, skylights and storm doors
  • Solar/geothermal energy equipment, such as solar electricity, solar water heaters and geothermal heat pumps

 

Is There a Maximum Amount I Can Claim?

Yes, there’s a lifetime max credit of $500 per property. This means if you have used this reduction in previous years, you are required to lower any credit you previously claimed.

If you’ve already claimed the max amount, you won’t be eligible for any other credits under this continuation.

Credit Limits for Particular Units

Credits have a limit for some participating solutions:


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

Upgrade Your Heating and Cooling Units Today

Been procrastinating buying new heating and cooling system? Talk with the Experts at 623-243-4517 or contact us online. We can help you choose an energy-efficient system you can earn tax benefits from the next year.

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