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

In regard to energy-efficient HVAC installation in Memphis, there’s great news for you this tax period.

The Residential Energy Efficient Property Credit will now go through 2020. This may qualify you for incentives for energy-efficient home modifications, like updated heating and cooling systems, water heaters and heat pumps.

What Equipment is Eligible?

To qualify for the incentive, the home should be the taxpayer’s chief residence in the USA. The improvement should last for a minimum of five years, with the initial use originating with the homeowner.

What Types of Improvements are Considered High-Efficiency Renovations?

Generally, this tax credit corresponds with 10% of the cost of the following energy-saving changes that meet 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
  • Qualified metal and asphalt roofing
  • Energy-efficient exterior storm windows, skylights and storm doors
  • Solar/geothermal energy products, for instance 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 claimed this incentive in past years, you should reduce any credit you already claimed.

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

Credit Caps for Certain Items

Credits are restricted for some eligible solutions:


  • 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? Talk with the Experts at 901-235-1196 or contact us online. We can help you find an energy-efficient system you can reap tax benefits from the following year.

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