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

In regard to energy-efficient HVAC installation in Savannah, there’s good 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 modifications, like new heating and cooling systems, water heaters and heat pumps.

What Are the Eligibility Requirements?

To be entitled for the reduction, the house must be the taxpayer’s chief home in the USA. The improvement must have a life of five years or more, with the original use originating with the homeowner.

What Types of Improvements are Regarded as High-Efficiency Renovations?

Typically, this tax credit is equivalent to 10% of the expense of the subsequent energy-saving changes that achieve 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
  • Particular 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 limit of $500 per home. This means if you have claimed this reduction in past years, you are required to reduce any credit you claimed earlier.

If you have claimed the top amount, you aren’t eligible for any additional credits through this expansion.

Credit Maximums for Particular Equipment

Credits are limited for some participating items:

  • 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 Units Today

Been putting off upgrading your heating and cooling system? Talk with the Experts at 912-208-2399 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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