How to Earn the Residential Energy Efficiency Property Credit in Ravenna in 2020

When it comes to energy-efficient HVAC installation in Ravenna, there’s fantastic news for your family at tax time.

The Residential Energy Efficient Property Credit has been extended through 2020. This could entitle you to incentives for energy-efficient home modifications, like new heating and cooling units, water heaters and heat pumps.

What Makes My Purchase Eligible?

To qualify for the incentive, the home is required to be the taxpayer’s main home in the USA. The improvement must have a life of a minimum of five years, with the initial use starting with the homeowner.

What Types of Enhancements are Qualify for High-Efficiency Upgrades?

Typically, this tax incentive is equivalent to 10% of the cost of the following energy-saving improvements that achieve certain 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
  • Particular exterior storm windows, skylights and storm doors
  • Solar/geothermal energy equipment, for instance solar electricity, solar water heaters and geothermal heat pumps

Is There a Maximum Amount I Can Claim?

Yes, there’s a lifetime limit of $500 per home. This means if you have claimed this reduction in prior years, you should lower any credit you claimed earlier.

If you’ve already claimed the maximum amount, you aren’t eligible for any extra reductions with this extension.

Credit Maximums for Particular Units

Tax reductions have a limit for a couple of eligible items:

  • Windows and skylights—$200
  • Advanced main air circulation—$50
  • Hot water boilers—$150
  • Energy-efficient equipment—$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 delaying getting new heating and cooling units? Reach the Experts at 330-236-4793 or contact us online. We can help you choose an energy-efficient system you can get tax benefits from the next year.