How to Earn the Residential Energy Efficiency Property Credit in Birmingham in 2020

As far as energy-efficient HVAC installation in Birmingham, there’s fantastic news for you at tax time.

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

How Do I Know if My Equipment Qualifies?

To be entitled for the reduction, the residence should be the taxpayer’s primary residence in the USA. The improvement should last for a minimum of five years, with the original use beginning with the taxpayer.

What Types of Improvements are Considered High-Efficiency Renovations?

Generally, this tax reduction corresponds with 10% of the price of the ensuing energy-saving improvements that match particular ENERGY STAR® requirements:

  • 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
  • Energy-efficient exterior storm windows, skylights and storm doors
  • Solar/geothermal energy products, such as solar electricity, solar water heaters and geothermal heat pumps

Am I Limited to Claiming a Certain Amount?

Yes, there’s a lifetime max credit of $500 per home. This means if you have taken this incentive in previous years, you should reduce any credit you previously claimed.

If you’ve already claimed the maximum amount, you aren’t eligible for any additional incentives through this extension.

Credit Maximums for Certain Equipment

Tax reductions are limited for certain eligible equipment:


  • 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.

Enhance Your Heating and Cooling Units Today

Been procrastinating getting new heating and cooling equipment? Reach the Experts at 205-267-0023 or contact us online. We can help you choose an energy-efficient system you can reap tax benefits during the upcoming year.

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