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

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

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

What Are the Eligibility Requirements?

To be entitled for the reduction, the house must be the taxpayer’s primary house in the United States. The improvement needs to work for five years or more, with the first use originating with the taxpayer.

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

Typically, this tax incentive equals 10% of the expense of the following energy-saving enhancements that meet particular 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
  • Energy-efficient exterior storm windows, skylights and storm doors
  • Solar/geothermal energy equipment, for instance solar electricity, solar water heaters and geothermal heat pumps

Am I Limited to Claiming a Certain Amount?

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

If you’ve already claimed the maximum amount, you won’t qualify for any extra credits with this expansion.

Credit Maximums for Certain Items

Incentives are restricted for a few participating items:

  • Windows and skylights—$200
  • Advanced main air circulation—$50
  • Hot water boilers—$150
  • Energy-efficient equipment—$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.

Upgrade Your Heating and Cooling Equipment Today

Been delaying getting new heating and cooling units? Call the Experts at 865-229-6176 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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