Tax Credit Information for 2014-2017

A number of tax credits for residential energy efficiency were renewed.  These tax credits are available for purchases made in 2016, as well as retroactive to purchases made in 2015.  ENERGY STAR products eligible for tax credits are independently certified to save energy, save money and protect the environment.  Use up to 30% less energy in your home by outfitting it with ENERGY STAR products available across more than 70 categories. *  

Tax Credit:  10% of cost up to $500 or a specific amount from $50-$300.
Expires:  December 31, 2017
Details:  Must be an existing home & your principal residence.  New construction and rentals do not apply.

• Air Source Heat Pumps
• Central Air Conditioning (CAC)
• Gas, Propane, or Oil Hot Water Boiler
• Gas, Propane or Oil Furnaces and Fans
• Water Heaters (non-solar)
• Advanced Main Air Circulating Fan
• Biomass Stoves

Tax Credit:  10% of the cost, up to $500, but windows are capped at $200. (NOT INCLUDING INSTALLATION)
Expires:  December 31, 2017
Details:  Must be an existing home & your principal residence.  New construction and rentals do not apply.

• Insulation
• Roofs (Metals & Asphalt)
• Windows, Doors & Skylights

A number of tax credits for residential energy efficiency were renewed.  These tax credits are available for purchases made in 2016, as well as retroactive to purchases made in 2015.  ENERGY STAR products eligible for tax credits are independently certified to save energy, save money and protect the environment.  Use up to 30% less energy in your home by outfitting it with ENERGY STAR products available across more than 70 categories. *  

Tax Credit:  10% of cost up to $500 or a specific amount from $50-$300.
Expires:  December 31, 2016
Details:  Must be an existing home & your principal residence.  New construction and rentals do not apply.

• Biomass Stoves
• Air Source Heat Pumps
• Central Air Conditioning (CAC)
• Gas, Propane, or Oil Hot Water Boiler
• Gas, Propane or Oil Furnaces and Fans
• Insulation
• Roofs
• Water Heaters (non-solar)
• Windows, Doors & Skylights

Tax Credit:  30% of cost with no upper limit
Expires:  December 31, 2016
                * (Tax credits for Solar Energy Systems are available at 30% through December 31, 2019.
                The credit decreases to 26% for tax year 2020; drops to 22% for tax year 2021 then expires December 31, 2021)
Details:  Existing homes and new construction qualify.  Both principal residences and second homes qualify. Rentals do not qualify.

• Geothermal Heat Pumps
• Small Wind Turbines (Residential)
• Solar Energy Systems*

Tax Credit:  30% of cost with no upper limit 
Expires:  December 31, 2016
Details:  Existing homes and new construction qualify.  Must be your principal residence.  Rental homes and second homes do not qualify.

• Fuel Cells (Residential Fuel Cell and Microturbine System)

*  The tax credit information contained within this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the IRS.

The Consolidated Appropriations Act (PDF, 551 KB), signed in December 2015, extended the expiration date of tax credits for some energy efficiency measures that previously expired at the end of 2014. The eligible incentives cover residential energy efficiency improvements, builder incentives for energy efficient new homes, and energy efficient new and retrofitted commercial buildings for measures installed by December 31, 2015. The following summarizes available information on Residential Energy Efficient Property credits and Nonbusiness Energy Property credits.

Tax Credit:  10% of cost up to $500 or a specific amount from $50-$300.
Expires:  December 31, 2016
Details:  Must be an existing home & your principal residence.  New construction and rentals do not apply.

• Biomass Stoves
• Air Source Heat Pumps
• Central Air Conditioning (CAC)
• Gas, Propane, or Oil Hot Water Boiler
• Gas, Propane or Oil Furnaces and Fans
• Insulation
• Roofs
• Water Heaters (non-solar)
• Windows, Doors & Skylights

Tax Credit:  30% of cost with no upper limit
Expires:  December 31, 2016
                 * (Tax credits for Solar Energy Systems are available at 30% through December 31, 2019.
                The credit decreases to 26% for tax year 2020; drops to 22% for tax year 2021 then expires December
                31, 2021)
Details:  Existing homes and new construction qualify.  Both principal residences and second homes qualify. Rentals do not qualify.

• Geothermal Heat Pumps
• Small Wind Turbines (Residential)
• Solar Energy Systems*

Tax Credit:  30% of cost with no upper limit
Expires:  December 31, 2016
Details:  Existing homes and new construction qualify.  Must be your principal residence.  Rental homes and second homes do not qualify.

• Fuel Cells (Residential Fuel Cell and Microturbine System)

Tax Credit:  10% of cost up to $500 or a specific amount from $50-$300. 
Expires:  December 31, 2016 
Details:  Must be an existing home & your principal residence. New construction and rentals do not apply.

• Biomass Stoves
• Advanced Main Air Circulating Fan
• Air Source Heat Pumps
• Central Air Conditioning (CAC)
• Gas, Propane, or Oil Hot Water Boiler
• Natural Gas, Propane or Oil Furnace
• Insulation
• Roofs (Metal & Asphalt)
• Water Heaters (non-solar)
• Windows, Doors & Skylights

Tax credits are available for the following 4 product categories.

Tax Credit:  30% of cost with no upper limit
Expires:  December 31, 2016
                 * (Tax credits for Solar Energy Systems are available at 30% through December 31, 2019.
                The credit decreases to 26% for tax year 2020; drops to 22% for tax year 2021 then expires December
                31, 2021)
Details:  Existing homes and new construction qualify.  Both principal residences and second homes qualify. Rentals do not qualify.

• Geothermal Heat Pumps
• Small Wind Turbines (Residential)
• Solar Energy Systems*

Tax Credit:  30% of cost with no upper limit
Expires:  December 31, 2016
Details:  Existing homes and new construction qualify.  Must be your principal residence.  Rental homes and second homes do not qualify.

• Fuel Cells (Residential Fuel Cell and Microturbine System)