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

In regard to energy-efficient HVAC installation in Clearwater, there’s good news for you this tax period.

The Residential Energy Efficient Property Credit has been extended through 2020. This might make you eligible for incentives for energy-efficient home improvements, like new heating and cooling systems, water heaters and heat pumps.

What Are the Eligibility Requirements?

To qualify for the reduction, the house should be the taxpayer’s main house in the United States. The improvement needs to last for at least five years, with the initial use originating with the taxpayer.

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

Generally, this tax incentive is equivalent to 10% of the cost of the ensuing energy-saving improvements that meet 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
  • Particular metal and asphalt roofing
  • Certain exterior storm windows, skylights and storm doors
  • Solar/geothermal energy products, like solar electricity, solar water heaters and geothermal heat pumps

Is There a Limit to How Much I Can Claim?

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

If you have claimed the max amount, you won’t qualify for any other reductions with this expansion.

Credit Limits for Certain Items

Credits are limited for some eligible 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.

Enhance Your Heating and Cooling Equipment Today

Been delaying installing new heating and cooling system? Talk with the Experts at 727-219-2471 or contact us online. We can help you find an energy-efficient system you can earn tax benefits from the following year.

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