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

As far as energy-efficient HVAC installation in Charlotte, there’s good news for your family this tax season.

The Residential Energy Efficient Property Credit has been extended through 2020. This may qualify you for reductions for energy-efficient home improvements, like new heating and cooling units, water heaters and heat pumps.

What Are the Eligibility Requirements?

To become eligible for the incentive, the residence should be the taxpayer’s primary home in the USA. The improvement should last for five years or more, with the original use originating with you.

What Varieties of Enhancements are Considered High-Efficiency Updates?

Usually, this tax credit equals 10% of the price of the following energy-saving enhancements that meet specific ENERGY STAR® conditions:

  • 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
  • Energy-efficient 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 used this incentive in prior years, you should reduce any credit you previously claimed.

If you have claimed the maximum amount, you won’t be eligible for any extra incentives under this continuation.

Credit Maximums for Specific Units

Tax reductions are limited for certain eligible 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.

Improve Your Heating and Cooling Units Today

Been delaying getting new heating and cooling units? Call the Experts at 704-705-8135 or contact us online. We can help you find an energy-efficient system you can get tax benefits during the upcoming year.

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