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

In regard to energy-efficient HVAC installation in Jackson, there’s great news for homeowners at tax time.

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

What Are the Eligibility Requirements?

To be entitled for the reduction, the house must be the taxpayer’s chief home in the United States. The improvement needs to have a life of at least five years, with the initial use originating with you.

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

Usually, this tax credit corresponds with 10% of the expense of the subsequent energy-saving enhancements that achieve specified ENERGY STAR® guidelines:

  • 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
  • Energy-efficient 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 are required to reduce any credit you already claimed.

If you’ve previously claimed the max amount, you aren’t eligible for any other reductions under this expansion.

Credit Caps for Certain Units

Incentives are restricted for a few eligible equipment:

  • 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 Units Today

Been delaying installing new heating and cooling units? Call the Experts at 601-852-3105 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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