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

When it comes to energy-efficient HVAC installation in Naples, there’s good news for homeowners this tax season.

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

What Are the Eligibility Requirements?

To become eligible for the reduction, the house is required to be the taxpayer’s chief residence in the USA. The improvement must last for at least five years, with the first use originating with the homeowner.

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

Usually, this tax incentive corresponds with 10% of the expense of the ensuing energy-saving changes that achieve specific 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
  • Qualified metal and asphalt roofing
  • Qualified exterior storm windows, skylights and storm doors
  • Solar/geothermal energy equipment, like solar electricity, solar water heaters and geothermal heat pumps

Is There a Maximum Amount I Can Claim?

Yes, there’s a lifetime cap of $500 per home. This means if you have used this reduction in past years, you should lower any credit you previously claimed.

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

Credit Limits for Specific Items

Credits have a limit for certain eligible items:

  • 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 installing new heating and cooling system? Talk with the Experts at 239-908-6991 or contact us online. We can help you find an energy-efficient system you can reap tax benefits during the upcoming year.

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