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

As far as energy-efficient HVAC installation in Richmond, there’s fantastic news for you this tax period.

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

How Do I Know if My Equipment Qualifies?

To qualify for the reduction, the residence must be the taxpayer’s main home in the United States. The improvement should have a life of a minimum of five years, with the initial use beginning with you.

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

Usually, this tax reduction corresponds with 10% of the price of the following energy-saving changes that meet specific 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
  • Particular metal and asphalt roofing
  • Certain exterior storm windows, skylights and storm doors
  • Solar/geothermal energy solutions, such as solar electricity, solar water heaters and geothermal heat pumps

How Much Can I Claim?

Yes, there’s a lifetime max credit of $500 per home. This means if you have taken this credit in prior years, you should lower any credit you already claimed.

If you have claimed the maximum amount, you won’t be eligible for any other credits through this expansion.

Credit Caps for Specific Units

Credits are limited for a few 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.

Enhance Your Heating and Cooling System Today

Been delaying installing new heating and cooling system? Talk with the Experts at 804-548-4480 or contact us online. We can help you find an energy-efficient system you can get tax benefits from the following year.

chat now widget box