How to Get the Residential Energy Efficiency Property Credit in North America in 2020

As far as energy-efficient HVAC installation in North America, there’s good news for homeowners at tax time.

The Residential Energy Efficient Property Credit has been lengthened through 2020. This could entitle you to reductions for energy-efficient home improvements, like updated heating and cooling units, water heaters and heat pumps.

What Equipment is Eligible?

To qualify for the reduction, the home must be the taxpayer’s primary residence in the United States. The improvement must work for a minimum of five years, with the initial use starting with the homeowner.

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

Typically, this tax incentive corresponds with 10% of the expense of the subsequent energy-saving changes that achieve specified ENERGY STAR® conditions:

  • 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
  • Qualified exterior storm windows, skylights and storm doors
  • Solar/geothermal energy products, like solar electricity, solar water heaters and geothermal heat pumps

How Much Can I Claim?

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

If you have claimed the maximum amount, you won’t qualify for any extra credits under this extension.

Credit Maximums for Specific Items

Incentives are restricted for a couple of qualified items:


  • 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 Equipment Today

Been delaying installing new heating and cooling system? Reach the Experts at 866-397-3787 or contact us online. We can help you choose an energy-efficient system you can reap tax benefits during the upcoming year.

Contact Us