How to Claim the Residential Energy Efficiency Property Credit in Saint Charles in 2020

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

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

What Makes My Purchase Eligible?

To become eligible for the incentive, the residence must be the taxpayer’s primary home in the United States. The improvement should have a life of five years or more, with the initial use starting with the taxpayer.

What Varieties of Improvements are Eligible to be High-Efficiency Renovations?

Generally, this tax incentive equals 10% of the cost of the subsequent energy-saving changes that meet certain 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 solutions, like solar electricity, solar water heaters and geothermal heat pumps

Is There a Limit to How Much I Can Claim?

Yes, there’s a lifetime limitation of $500 per home. This means if you have used this incentive in past years, you should decrease any credit you claimed earlier.

If you’ve already claimed the highest amount, you won’t be eligible for any extra credits with this continuation.

Credit Maximums for Certain Items

Tax reductions are limited for a few eligible 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.

Upgrade Your Heating and Cooling Units Today

Been delaying buying new heating and cooling units? Call the Experts at 630-246-2698 or contact us online. We can help you choose an energy-efficient system you can get tax benefits from the next year.

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