How to Claim the Residential Energy Efficiency Property Credit in Rochester in 2020

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

The Residential Energy Efficient Property Credit has been lengthened through 2020. This might entitle you to incentives for energy-efficient home modifications, like updated heating and cooling equipment, water heaters and heat pumps.

What Makes My Purchase Eligible?

To qualify for the credit, the residence must be the taxpayer’s main residence in the United States. The improvement needs to last for five years or more, with the original use starting with the homeowner.

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

Typically, this tax reduction is equivalent to 10% of the expense of the ensuing energy-saving changes 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
  • Particular metal and asphalt roofing
  • Particular exterior storm windows, skylights and storm doors
  • Solar/geothermal energy equipment, like solar electricity, solar water heaters and geothermal heat pumps

Am I Limited to Claiming a Certain Amount?

Yes, there’s a lifetime limit of $500 per home. This means if you have used this reduction in previous years, you must decrease any credit you previously claimed.

If you’ve previously claimed the max amount, you won’t be eligible for any extra credits under this extension.

Credit Caps for Specific Equipment

Incentives are limited for certain participating equipment:

  • 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.

Improve Your Heating and Cooling Units Today

Been putting off buying new heating and cooling equipment? Talk with the Experts at 603-923-4570 or contact us online. We can help you find an energy-efficient system you can reap tax benefits from the following year.

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