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

As far as energy-efficient HVAC installation in Austin, there’s great news for you this tax season.

The Residential Energy Efficient Property Credit has been lengthened through 2020. This could entitle you to credits for energy-efficient home improvements, like updated heating and cooling systems, water heaters and heat pumps.

How Do I Know if My Equipment Qualifies?

To become eligible for the reduction, the home must be the taxpayer’s chief residence in the USA. The improvement must have a life of five years or more, with the original use starting with you.

What Types of Improvements are Regarded as High-Efficiency Renovations?

Usually, this tax credit is equivalent to 10% of the price of the ensuing energy-saving changes that meet specific 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
  • Particular metal and asphalt roofing
  • Particular exterior storm windows, skylights and storm doors
  • Solar/geothermal energy equipment, for instance solar electricity, solar water heaters and geothermal heat pumps

 

Is There a Maximum Amount I Can Claim?

Yes, there’s a lifetime limit of $500 per property. This means if you have taken this incentive in previous years, you must reduce any credit you already claimed.

If you’ve already claimed the highest amount, you won’t qualify for any extra incentives with this extension.

Credit Maximums for Particular Equipment

Credits are limited for a few participating items:


  • 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.

Enhance Your Heating and Cooling System Today

Been procrastinating buying new heating and cooling system? Talk with the Experts at 512-596-1257 or contact us online. We can help you select an energy-efficient system you can earn tax benefits from the next year.

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