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

In regard to energy-efficient HVAC installation in Ocala, there’s great news for you this tax period.

The Residential Energy Efficient Property Credit has been lengthened through 2020. This may qualify you for reductions for energy-efficient home modifications, like updated heating and cooling systems, water heaters and heat pumps.

What Makes My Purchase Eligible?

To qualify for the incentive, the home must be the taxpayer’s main house in the U.S. The improvement must last for at least five years, with the original use originating with you.

What Types of Improvements are Qualify for High-Efficiency Updates?

Typically, this tax credit equals 10% of the expense of the ensuing energy-saving enhancements that match certain ENERGY STAR® conditions:

  • 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
  • Certain exterior storm windows, skylights and storm doors
  • Solar/geothermal energy equipment, like 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 used this incentive in previous years, you must decrease any credit you already claimed.

If you’ve already claimed the top amount, you aren’t eligible for any additional reductions with this expansion.

Credit Limits for Particular Units

Tax reductions are restricted for a few eligible solutions:

  • 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.

Improve Your Heating and Cooling Units Today

Been procrastinating installing new heating and cooling system? Talk with the Experts at 352-414-4006 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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