HVAC Tax Credit

Get up to $1500 back with the HVAC Tax Credit

If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit. Below you will find an overview of the federal tax credits for energy efficiency.

Please note, not all ENERGY STAR qualified products qualify for a tax credit. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.

Tax Credit: 30% of cost up to $1,500
Expires: December 31, 2010
Details: Must be an existing home & your principal residence. New construction and rentals do not qualify.

Tax credits are available at 30% of the cost, up to $1,500 total, in 2009 & 2010 (ONLY for existing homes, NOT new construction, that are your “principal residence”) for:

  • Windows and Doors (including sliding glass doors, garage doors, storm doors and storm windows)
  • Insulation
  • Roofs (Metal and Asphalt)
  • HVAC: Central Air Conditioners, Air Source Heat Pumps, Furnaces and Boilers
  • Water Heaters: Gas, Oil, & Propane Water Heaters, Electric Heat Pump Water Heaters
  • Biomass Stoves

HVAC Tax Credits

HVAC Tax credits are available at 30% of the cost, with no upper limit, through 2016 (for existing homes & new construction – it does not have to be your “principal residence,” vacation homes are eligible) for:

  • Geothermal Heat Pumps
  • Solar Panels
  • Solar Water Heaters
  • Small Wind Energy Systems

Central air conditioners can qualify for a tax credit.

How much: 30% of the cost (including installation/labor costs), up to $1,500

Timing: Tax credit in effect in 2009 and 2010. Must be installed in your “principal residence” between January 1, 2009 and December 31, 2010.

Details: Important Note: It is likely that you will have to replace your furnace as well to get an air conditioner that qualifies.

The new air conditioner does not have to be replacing an old one to qualify.

Find qualified models: The best way to find tax credit eligible Central Air Conditioners is to ask your HVAC Contractor. To verify tax credit eligibility, ask your HVAC contractor to provide the Manufacturer’s Certification Statement for the equipment you plan to purchase. Or search the Manufacturer’s website.

How to apply: File Tax Form 5695 with your tax return.
You must have a Manufacturer’s Certification Statement to qualify.