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

In regard to energy-efficient HVAC installation in Philadelphia, there’s good news for homeowners this tax season.

The Residential Energy Efficient Property Credit has been extended through 2020. This might qualify you for reductions for energy-efficient home enhancements, like new heating and cooling units, water heaters and heat pumps.

How Do I Know if My Equipment Qualifies?

To qualify for the credit, the residence is required to be the taxpayer’s chief residence in the United States. The improvement must last for five years or more, with the first use beginning with you.

What Varieties of Enhancements are Eligible to be High-Efficiency Upgrades?

Typically, this tax reduction equals 10% of the cost of the subsequent 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
  • Qualified metal and asphalt roofing
  • Energy-efficient exterior storm windows, skylights and storm doors
  • Solar/geothermal energy equipment, 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 used this incentive in past years, you must reduce any credit you already claimed.

If you’ve already claimed the maximum amount, you won’t qualify for any other credits through this extension.

Credit Maximums for Specific Equipment

Credits have a limit for certain participating items:


  • 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.

Upgrade Your Heating and Cooling Units Today

Been delaying buying new heating and cooling units? Reach the Experts at 215-278-9690 or contact us online. We can help you find an energy-efficient system you can reap tax benefits from the next year.

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