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energy tax credit

For many years, the federal Energy Star program has encouraged homeowners to reduce energy usage by offering tax credits for certain energy-efficient products, such as HVAC equipment and water heaters. Some products that qualify for the energy tax rebate include:

HVAC Equipment

  • Central air conditioning systems: A $300 credit is available for cooling systems that are featured on the Energy Star Most Efficient 2016 list, as well as certain models that feature a SEER of 16 or above for split systems or 14 or above for packaged systems. To determine if your system qualifies, visit the Energy Star website or contact the manufacturer.
  • Air source heat pumps: A $300 credit is available for Energy Star-certified models. Split systems must have an HSPF of greater than 8.5, an EER of over 12.5 and a SEER of over 15. Packaged systems must have an HSPF of over 8, an EER of over 12 and a SEER of over 14.
  • Furnaces: Gas, propane or oil furnaces that are Energy Star-certified with an AFUE of over 95 qualify for a $150 credit, and Energy Star-certified furnace fans that use less that 2 percent of the total energy for the furnace qualify for a $50 credit.
  • Boilers: Boilers on the Energy Star Most Efficient 2016 list with an AFUE of over 95 qualify for a $150 credit.

Geothermal Heat Pumps: A credit for up to 30% of the system’s purchase price is available for both new or existing homes.

Water Heaters

  • A $300 credit is available for Energy Star-certified electric water heaters, as well as certain Energy Star-certified natural gas models with an energy factor of over 0.82 and heat pump models with an energy factor of over 2.0.

To qualify for the energy tax rebate, these products must have been purchased by December 31, 2016 and installed in an existing home that is your primary residence. IRS form 5695 must be filed with your federal income taxes by April 18, 2017 to receive the energy tax rebate.

To learn more about the energy tax rebate for HVAC equipment, contact our team at Conditioned Air.

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