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

When it comes to energy-efficient HVAC installation in Gaithersburg, there’s great news for you at tax time.

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

What Are the Eligibility Requirements?

To be entitled for the reduction, the residence is required to be the taxpayer’s chief residence in the United States. The improvement must work for a minimum of five years, with the original use originating with you.

What Types of Enhancements are Considered High-Efficiency Renovations?

Usually, this tax incentive corresponds with 10% of the expense of the ensuing energy-saving enhancements that match 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
  • Qualified exterior storm windows, skylights and storm doors
  • Solar/geothermal energy products, such as solar electricity, solar water heaters and geothermal heat pumps

Is There a Limit to How Much I Can Claim?

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

If you have claimed the max amount, you won’t qualify for any extra reductions through this extension.

Credit Limits for Particular Equipment

Tax reductions are restricted for certain participating equipment:


  • 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.

Enhance Your Heating and Cooling Equipment Today

Been putting off buying new heating and cooling equipment? Talk with the Experts at 301-476-4577 or contact us online. We can help you find an energy-efficient system you can earn tax benefits from the next year.

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