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

As far as energy-efficient HVAC installation in Columbia, there’s great news for your family at tax time.

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

What Are the Eligibility Requirements?

To qualify for the reduction, the house must be the taxpayer’s main residence in the USA. The improvement must have a life of at least five years, with the first use originating with the taxpayer.

What Kinds of Changes are Regarded as High-Efficiency Upgrades?

Typically, this tax reduction is equivalent to 10% of the expense of the following 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
  • Particular metal and asphalt roofing
  • Particular exterior storm windows, skylights and storm doors
  • Solar/geothermal energy products, for instance solar electricity, solar water heaters and geothermal heat pumps

Am I Limited to Claiming a Certain Amount?

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

If you’ve already claimed the maximum amount, you won’t qualify for any additional incentives through this expansion.

Credit Caps for Certain Items

Credits have a limit for a couple of participating 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 System Today

Been procrastinating upgrading your heating and cooling equipment? Reach the Experts at 803-399-7208 or contact us online. We can help you find an energy-efficient system you can earn tax benefits from the following year.

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