UPDATED JANUARY 2021: The Non-Business Energy Property Tax Credits have been retroactively extended from 12/31/2017 through 12/31/2021
Tax Credit: 10% of cost up to $500 or a specific amount from $50-$300.
Expires: December 31, 2021
Details: Must be an existing home & your principal residence. New construction and rentals do not apply.
Heat pumps that are ENERGY STAR certified meet the requirements for this tax credit.
Tax Credit Amount: $300
Requirements
Split Systems:
HSPF >= 8.5
EER >= 12.5
SEER >= 15
Package systems:
HSPF >= 8
EER >= 12
SEER >= 14
See Definitions.
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Air conditioners recognized as ENERGY STAR Most Efficient meet the requirements for this tax credit. To verify tax credit eligibility, ask your HVAC contractor to provide the Manufacturer Certification Statement for the equipment you plan to purchase.
Tax Credit Amount: $300
Requirements
Split Systems:
SEER>= 16
EER >= 13
Package systems:
SEER >= 14
EER >= 12
See definitions.
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Gas powered boilers that are recognized as ENERGY STAR Most Efficient meet the requirements of this tax credit.
Tax Credit Amount: $150
Requirements
AFUE >= 95
Tax Credit includes installation costs.
See definitions.
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Gas furnaces that are ENERGY STAR certified (except those for U.S. South only) meet the requirements for the furnace tax credit. Gas and oil furnaces that have earned the ENERGY STAR include fans that meet the requirements of the fan tax credit.
Tax Credit Amount: $150
Requirements
AFUE >= 95
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Gas, Oil, Propane Water HeaterCertain ENERGY STAR certified gas water heaters meet the requirements for this tax credit. Water heaters account for 12% of the energy consumed in your home.
Tax Credit Amount: $300
Requirements
Uniform Energy Factor (UEF) >= 0.82 OR a thermal efficiency of at least 90%.
See definitions.
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Electric Heat Pump Water HeaterMost ENERGY STAR certified water heaters meet the requirements of this tax credit. Water heaters account for 12% of the energy consumed in your home.
Tax Credit Amount: $300
Requirements
Uniform Energy Factor (UEF) >= 2.2
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Biomass stoves burn biomass fuel to heat a home or heat water. Biomass fuel includes agricultural crops and trees, wood and wood waste and residues (including wood
pellets), plants (including acquating plants), grasses, residues, and fibers.
Tax Credit Amount: $300
**Please note: This tax credit may still be claimed on your 2020 tax return for qualifying purchases and installations completed before December 31, 2020.
Effective January 1, 2021, these systems will qualify as a Renewable Energy Tax Credit.
Beginning in 2021, if you purchase and install a wood or pellet stove or larger residential biomass heating system with a Thermal Efficiency Rating of at least 75%, you will be able to claim a 26% tax credit that is uncapped and based on the full cost (purchase and installation) of the unit. The credit will remain at 26% throughout 2021 and 2022, and reduce to 22% in 2023.
The credit must be claimed on the tax return for the year the product installation is completed. Therefore, any product purchased in 2020 that qualifies for the new credit, but is not installed until 2021, should be claimed under the new credit on your 2021 tax return.
Requirements:
Thermal efficiency rating of at least 75%
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Please note: Tax credit DOES NOT INCLUDE INSTALLATION FOR THE FOLLOWING PRODUCTS.
Adding adequate insulation is one of the most cost-effective home improvements that you can do.
Tax Credit Amount: 10% of the cost, up to $500 (NOT INCLUDING INSTALLATION)
Requirements
Typical bulk insulation products can qualify, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place.
Products that air seal (reduce air leaks) can also qualify, as long as they come with a Manufacturers Certification Statement, including:
NOTE: Tax Credit does NOT include installation costs.
See definitions.
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This tax credit is for ENERGY STAR certified metal and asphalt roofs with pigmented coatings or cooling granules designed to reduce heat gain. Certified roof products reflect more of the sun's rays, which can lower roof surface temperature by up to 100F, decreasing the amount of heat transferred into your home.
Tax Credit Amount: 10% of the cost, up to $500 (NOT INCLUDING INSTALLATION)
Requirements
"Metal roofs with appropriate pigmented coatings" and "asphalt roofs with appropriate cooling granules" that also meet ENERGY STAR requirements.
NOTE: Tax Credit does NOT include installation costs.
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Windows, doors and skylights that earn the ENERGY STAR save energy, improve comfort and help protect the environment.
Tax Credit Amount: 10% of the cost, up to $500, but windows are capped at $200. (NOT INCLUDING INSTALLATION)
Requirements
Must be ENERGY STAR certified.
You do not have to replace all the windows/doors/skylights in your home to qualify. And it doesn't need to be a replacement either - installing a new window where there wasn't one previously (like in an addition) qualifies.
Tax credit does not include installation costs.
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