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

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

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

What Are the Eligibility Requirements?

To be entitled for the incentive, the home must be the taxpayer’s main house in the United States. The change must last for five years or more, with the initial use beginning with you.

What Kinds of Changes are Considered High-Efficiency Renovations?

Typically, this tax credit is equivalent to 10% of the cost of the following energy-saving enhancements that match 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
  • Certain 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

 

Is There a Maximum Amount I Can Claim?

Yes, there’s a lifetime restriction of $500 per location. This means if you have claimed this reduction in prior years, you are required to decrease any credit you claimed earlier.

If you have claimed the maximum amount, you won’t be eligible for any extra reductions through this extension.

Credit Limits for Particular Equipment

Credits have a limit for a couple of eligible solutions:


  • Windows and skylights—$200
  • Advanced main air circulation—$50
  • Hot water boilers—$150
  • Energy-efficient units—$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 Equipment Today

Been putting off getting new heating and cooling equipment? Talk with the Experts at 615-953-9885 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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