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 fantastic news for your family at tax time.

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

What Makes My Purchase Eligible?

To be entitled for the incentive, the house should be the taxpayer’s main residence in the United States. The enhancement must work for at least five years, with the original use originating with the homeowner.

What Types of Changes are Eligible to be High-Efficiency Updates?

Usually, this tax credit corresponds with 10% of the price 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
  • Qualified metal and asphalt roofing
  • Particular exterior storm windows, skylights and storm doors
  • Solar/geothermal energy products, such as solar electricity, solar water heaters and geothermal heat pumps

 

Am I Limited to Claiming a Certain Amount?

Yes, there’s a lifetime maximum credit of $500 per property. 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 incentives with this extension.

Credit Limits for Particular Equipment

Tax reductions are limited for certain eligible solutions:


  • 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 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 get tax benefits from the following year.