SUMMARY OF TAX CREDITS FOR HOMEOWNERS
Product Tax Credit
Product Type Tax Credit Notes
Category Specification
Windows Exterior U factor =13 of cost, up products, go to the
SEER >= 16 to $1,5002 Consortium for Energy
Efficiency product
Package systems: directory, click on Air
EER >= 12 Conditioners, then in the
SEER >= 14 “CEE Tier” enter
Air Source Split Systems: 30 percent “Residential Advanced
Heat Pumps HSPF >= 8.5 of cost, up Tier 3” for CAC Split
EER >= 12.5 to $1,5002 Systems, and "Residential
SEER >= 15 Tier 2" for CAC Package
Systems and ASHPs.
Package systems: Note — not all ENERGY
HSPF >= 8 STAR products will
EER >= 12 qualify for the tax credit.
SEER >= 14
Natural Gas or AFUE >= 95 30 percent For a list of qualifying
Propane of cost, up products go to the Gas
Furnace to $1,5002 Appliance Manufacturing
Oil Furnace AFUE >= 90 30 percent Association
of cost, up Not all ENERGY STAR
to $1,5002 products will qualify for
the tax credit.
Gas, Propane, AFUE >= 90 30 percent
or Oil Hot of cost, up
Water Boiler to $1,5002
Advanced No more than two 30 percent
Main Air percent of furnace of cost, up
Circulating total energy use to $1,5002
Fan
Water Gas, Oil, Energy Factor >= 30 percent Not all ENERGY STAR
Heaters Propane 0.82 of cost, up gas storage and gas
Water Heater or a thermal to $1,5002 condensing water heaters
efficiency of at least will qualify for the tax
90 percent. credit. All ENERGY
STAR gas tankless models
will qualify.
All ENERGY STAR gas
tankless water heaters will
qualify.
For a partial list of
qualifying products go to
the Air Conditioning,
Heating, and refrigeration
Institute (AHRI)
Electric Heat Same criteria as 30 percent All ENERGY STAR
Pump Water ENERGY STAR: of cost, up electric heat pump water
Heater Energy Factor >= to $1,5002 heaters qualify for the tax
2.0 credit.
Biomass Biomass Stove which burns 30 percent
Stove Stove biomass fuel5 to of cost, up
heat a home or heat to $1,5002
water.
Thermal efficiency
rating of at least 75
percent as measured
using a lower
heating value.
Geo- Geo-Thermal Same criteria as 30 percent All ENERGY STAR geo-
Thermal Heat Pump ENERGY STAR: of the cost thermal heat pumps
Heat qualify for the tax credit.
Pump Closed Loop: Use IRS Form 5695
EER >= 14.1 Must be “placed into
COP >= 3.3 service” before Dec. 31,
2016.
Open Loop:
EER >= 16.2
COP >= 3.6
Direct Expansion:
EER >= 15
COP >= 3.5
Solar Solar Water At least half of the 30 percent All ENERGY STAR solar
Energy Heating energy generated by of cost water heaters qualify for
Systems the “qualifying the tax credit.
property” must Use IRS Form 5695
come from the sun. Must be placed in service
Homeowners may before December 31,
only claim spending 2016.
on the solar water
heating system
property, not the
entire water heating
system of the
household.
The credit is not
available for
expenses for
swimming pools or
hot tubs.
The water must be
used in the
dwelling.
The system must be
certified by the
Solar Rating and
Certification
Corporation
(SRCC).
Photovoltaic Photovoltaic 30 percent Use IRS Form 5695
Systems systems must of cost Must be placed in service
provide electricity before Dec. 31, 2016.
for the residence,
and must meet
applicable fire and
electrical code
requirement.
Small Residential 30 percent Use IRS Form 5695
Wind Small Wind of cost Must be placed in service
Energy Energy before Dec. 31, 2016.
Systems Systems
Fuel Cells Residential Efficiency of at 30 percent Use IRS Form 5695
Fuel Cell and least 30 percent and of the cost, Must be placed in service
microturbine must have a up to $1500 before Dec. 31, 2016.
system capacity of at least per .5 kW of
0.5 kW. power
capacity
1
Either the 2001 Supplement of the 2000 International Energy Conservation Code or the
2004 Supplement of the 2003 International Energy Conservation Code.
2
Subject to a $1,500 maximum per homeowner for all improvements combined.
3
A Manufacturer’s Certification is a signed statement from the manufacturer certifying
that the product or component qualifies for the tax credit. The IRS encourages
manufacturers to provide these Certifications on their website to facilitate identification
of qualified products. Taxpayers must keep a copy of the certification statement for their
records, but do not have to submit a copy with their tax return.
4
Additional information on exterior window features may be viewed at Anatomy of an
Energy Efficient Window.
5
Biomass Fuel means any plant-derived fuel available on a renewable or recurring basis,
including agricultural crops and trees, wood and wood waste and residues (including
wood pellets), plants (including aquatic plants), grasses, residues, and fibers.
The IRS defines “placed in service” as when the property is ready and available for use.
This information comes from Energy Star, for more information visit the Energy Star
Web site at www.energystar.gov/taxcred