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

As far as energy-efficient HVAC installation in Houston, there’s good news for you this tax period.

The Residential Energy Efficient Property Credit will now go through 2020. This may entitle you to credits 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 home in the U.S. The improvement needs to last for a minimum of five years, with the first use beginning with you.

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

Generally, this tax credit equals 10% of the expense of the subsequent 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 max credit of $500 per home. This means if you have used this reduction in past years, you must lower any credit you already claimed.

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

Credit Caps for Particular Units

Incentives are restricted for certain 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.

Improve Your Heating and Cooling System Today

Been procrastinating buying new heating and cooling equipment? Talk with the Experts at 713-396-3760 or contact us online. We can help you find an energy-efficient system you can get tax benefits during the upcoming year.

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