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

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

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

What Equipment is Eligible?

To become eligible for the credit, the residence should be the taxpayer’s main home in the U.S. The improvement needs to last for at least five years, with the original use originating with the homeowner.

What Types of Improvements are Considered High-Efficiency Renovations?

Typically, this tax credit equals 10% of the expense of the ensuing energy-saving improvements 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
  • Energy-efficient metal and asphalt roofing
  • Particular exterior storm windows, skylights and storm doors
  • Solar/geothermal energy solutions, for example solar electricity, solar water heaters and geothermal heat pumps

Is There a Limit to How Much I Can Claim?

Yes, there’s a lifetime limitation of $500 per home. This means if you have used this incentive in prior years, you are required to decrease any credit you already claimed.

If you’ve previously claimed the top amount, you won’t qualify for any other reductions under this continuation.

Credit Caps for Particular Units

Tax reductions have a limit for certain participating equipment:


  • Windows and skylights—$200
  • Advanced main air circulation—$50
  • Hot water boilers—$150
  • Energy-efficient systems—$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 System Today

Been delaying upgrading your heating and cooling system? Reach the Experts at 512-592-3072 or contact us online. We can help you choose an energy-efficient system you can earn tax benefits from the next year.

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