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

As far as energy-efficient HVAC installation in Tempe, there’s good news for you at tax time.

The Residential Energy Efficient Property Credit will now go through 2020. This may make you eligible for credits for energy-efficient home improvements, like new heating and cooling units, water heaters and heat pumps.

What Equipment is Eligible?

To become eligible for the incentive, the home should be the taxpayer’s chief home in the U.S. The improvement should work for at least five years, with the initial use originating with the homeowner.

What Varieties of Changes are Regarded as High-Efficiency Updates?

Typically, this tax credit is equivalent to 10% of the price of the subsequent energy-saving changes that match specified 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
  • Energy-efficient exterior storm windows, skylights and storm doors
  • Solar/geothermal energy products, for instance solar electricity, solar water heaters and geothermal heat pumps

Is There a Limit to How Much I Can Claim?

Yes, there’s a lifetime limit of $500 per home. This means if you have used this incentive in prior years, you are required to lower any credit you already claimed.

If you’ve previously claimed the top amount, you aren’t eligible for any additional incentives with this extension.

Credit Limits for Specific Items

Incentives are restricted for a few eligible solutions:

  • 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.

Upgrade Your Heating and Cooling Equipment Today

Been procrastinating upgrading your heating and cooling units? Talk with the Experts at 602-906-0111 or contact us online. We can help you find an energy-efficient system you can get tax benefits from the following year.

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