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

In regard to energy-efficient HVAC installation in Boise, there’s fantastic news for your family at tax time.

The Residential Energy Efficient Property Credit has been extended through 2020. This may qualify you for incentives for energy-efficient home improvements, like new heating and cooling equipment, water heaters and heat pumps.

How Do I Know if My Equipment Qualifies?

To become eligible for the credit, the home must be the taxpayer’s primary residence in the U.S.. The change needs to last for a minimum of five years, with the initial use starting with the taxpayer.

What Varieties of Enhancements are Considered High-Efficiency Renovations?

Usually, this tax credit is equivalent to 10% of the cost of the subsequent energy-saving changes that meet 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
  • Energy-efficient metal and asphalt roofing
  • Energy-efficient exterior storm windows, skylights and storm doors
  • Solar/geothermal energy solutions, for example solar electricity, solar water heaters and geothermal heat pumps

 

Am I Limited to Claiming a Certain Amount?

Yes, there’s a lifetime maximum credit of $500 per location. This means if you have claimed this incentive in previous years, you are required to lower any credit you claimed earlier.

If you have claimed the max amount, you won’t be eligible for any additional incentives under this continuation.

Credit Caps for Particular Items

Tax reductions are limited for a couple of qualified solutions:


  • 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.

Improve Your Heating and Cooling Units Today

Been procrastinating buying new heating and cooling units? Talk with the Experts at 208-488-4892 or contact us online. We can help you find an energy-efficient system you can earn tax benefits from the next year.