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 your family this tax season.

The Residential Energy Efficient Property Credit will now go through 2020. This might qualify you for reductions 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 be entitled for the incentive, the home must be the taxpayer’s chief residence in the U.S. The improvement must have a life of five years or more, with the original use beginning with the homeowner.

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

Typically, this tax credit corresponds with 10% of the expense of the ensuing energy-saving changes 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
  • Particular metal and asphalt roofing
  • Qualified exterior storm windows, skylights and storm doors
  • Solar/geothermal energy solutions, 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 home. This means if you have taken this incentive in previous years, you must reduce any credit you already claimed.

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

Credit Maximums for Particular Equipment

Credits are limited for a few eligible items:


  • 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.

Improve Your Heating and Cooling Units Today

Been delaying upgrading your heating and cooling units? 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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