How to Get the Residential Energy Efficiency Property Credit in Denver in 2020

In regard to energy-efficient HVAC installation in Denver, there’s great news for you at tax time.

The Residential Energy Efficient Property Credit will now go through 2020. This might qualify you for incentives for energy-efficient home improvements, like updated heating and cooling equipment, water heaters and heat pumps.

What Makes My Purchase Eligible?

To become eligible for the reduction, the residence is required to be the taxpayer’s main home in the United States. The improvement needs to have a life of a minimum of five years, with the original use originating with you.

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

Usually, this tax reduction corresponds with 10% of the price of the ensuing energy-saving enhancements that achieve specified ENERGY STAR® requirements:

  • 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 products, for instance solar electricity, solar water heaters and geothermal heat pumps

Am I Limited to Claiming a Certain Amount?

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

If you have claimed the maximum amount, you won’t be eligible for any additional credits under this extension.

Credit Limits for Certain Items

Credits are restricted for certain qualified 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.

Enhance Your Heating and Cooling Equipment Today

Been delaying buying new heating and cooling system? Reach the Experts at 303-647-5853 or contact us online. We can help you select an energy-efficient system you can get tax benefits from the following year.

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