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

In regard to energy-efficient HVAC installation in Houston, there’s good news for your family at tax time.

The Residential Energy Efficient Property Credit will now go through 2020. This may entitle you to reductions for energy-efficient home enhancements, like updated heating and cooling systems, water heaters and heat pumps.

What Makes My Purchase Eligible?

To qualify for the credit, the home must be the taxpayer’s main house in the U.S. The improvement should last for at least five years, with the initial use beginning with you.

What Types of Enhancements are Qualify for High-Efficiency Renovations?

Generally, this tax incentive equals 10% of the price of the ensuing energy-saving improvements 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 products, such as solar electricity, solar water heaters and geothermal heat pumps

How Much Can I Claim?

Yes, there’s a lifetime limitation of $500 per home. This means if you have taken this incentive in past years, you must decrease any credit you previously claimed.

If you have claimed the top amount, you won’t qualify for any other credits under this expansion.

Credit Maximums for Particular Units

Incentives are restricted for a few qualified equipment:

  • 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.

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