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

As far as energy-efficient HVAC installation in Indianapolis, there’s good news for your family this tax season.

The Residential Energy Efficient Property Credit has been lengthened through 2020. This could entitle you to incentives for energy-efficient home modifications, like modern heating and cooling equipment, water heaters and heat pumps.

What Makes My Purchase Eligible?

To become eligible for the credit, the residence should be the taxpayer’s main house in the U.S. The improvement needs to have a life of at least five years, with the initial use beginning with the taxpayer.

What Types of Improvements are Eligible to be High-Efficiency Renovations?

Typically, this tax incentive corresponds with 10% of the expense of the ensuing energy-saving enhancements that achieve specific 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
  • 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 claimed this incentive in prior years, you should reduce any credit you claimed earlier.

If you’ve previously claimed the maximum amount, you won’t be eligible for any extra reductions with this continuation.

Credit Maximums for Specific Equipment

Credits are limited for a couple of 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 System Today

Been putting off upgrading your heating and cooling units? Talk with the Experts at 317-527-0271 or contact us online. We can help you select an energy-efficient system you can get tax benefits from the next year.

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