You are here » Tax Credits, Rebates & Savings Tax Credits, Rebates & Savings Cut Taxes and Save on Energy Bills with Home Energy Credits IRS Tax Tip 2015-38, March 13, 2015 You can reduce your taxes and save on your energy bills with certain home improvements.  Here are some key facts that you should know about home energy tax credits: Part of this credit is worth 10 percent of the cost of certain qualified energy-saving items you added to your main home last year. This may include items such as insulation, windows, doors and roofs. The other part of the credit is not a percentage of the cost. This part of the credit is for the actual cost of certain property. This may include items such as water heaters and heating and air conditioning systems. The credit amount for each type of property has a different dollar limit. Be sure you have the written certification from the manufacturer that their product qualifies for this tax credit. They usually post it on their website or include it with the product’s packaging.

You can rely on it to claim the credit, but do not attach it to your return. Keep it with your tax records. This credit had expired at the end of 2013. The Tax Increase Prevention Act extended it to apply for one year, through Dec. 31, 2014. You may still claim the credit on your 2014 tax return if you didn’t reach the lifetime limit in prior years. This tax credit is 30 percent of the cost of alternative energy equipment installed on or in your home. Qualified equipment includes solar hot water heaters, solar electric equipment, wind turbines and fuel cell property. There is no dollar limit on the credit for most types of property. The home must be in the U.S. It does not have to be your main home, unless the alternative energy equipment is qualified fuel cell property. This credit is available through 2016.For more on this topic refer to the form’s instructions. You can get IRS forms on IRS.gov/forms anytime. If you found this Tax Tip helpful, please share it through your social media platforms.

A great way to get tax information is to use IRS Social Media. You can also subscribe to IRS Tax Tips or any of our e-news subscriptions.On December 15, 2015, The Consolidated Appropriations Act of 2015 was signed into law and extends through 2016, the tax credit for residential energy efficiency improvements. house a c unit freezing upThis includes purchases of heating, cooling and water heating equipment made in 2015.york international air handling units Geothermal system tax credits and solar water heaters are unaffected by these changes and remain in place through 12/31/2016.deliver my ac unit inc Note: State, Local and Utility rebates may still be available in your respective markets for residential energy products installed in 2012.

Please visit the "Homeowner Resource Center" for a list of energy efficiency tax credits by State. What equipment qualifies for the credit? High-efficiency water heaters, furnaces, boilers, heat pumps, central air conditioners, building insulation, windows, roofs, biomass stoves, and circulating fans used in qualifying gas furnaces. Please see the chart below, which details the qualifying Rheem equipment. When does the tax credit expire? This tax credit expired at the end of 2014, however The Consolidated Appropriations Act of 2015 retroactively renewed this tax credit effective January 1, 2015, expiring again on December 31, 2016. What's the maximum amount that a homeowner can receive in tax credits? The maximum amount an eligible homeowner may receive in tax credits for improvements is $500. If you have already claimed credits of $500 or more from improvements made in 2011 or any year prior, you are ineligible to claim new credits for any new improvements made during 2012 through 2016.

Can these tax credits be applied to energy-efficient equipment purchased for a second home? In order for purchases of high-efficiency heating, cooling and water heating equipment to be eligible for this tax credit, the equipment must be installed in a primary residence that is owned and used by the taxpayer What do I need to do to take advantage of this tax credit? Your local contractor who installs the equipment can help make sure that you have the right documentation needed to claim the tax credit. You can also download the proper IRS form here. Where can I find out more information about these tax credits? AHRI (Air-Conditioning, Heating & Refrigeration Institute) has more information here. Note: State, Local and Utility rebates may still be available in your respective markets for residential energy products. *Tax credit forms will be posted by February 12, 2016. If you cannot find the appropriate tax form listed on this website, please contact us at the link below.

Please be sure to include your indoor product model, outdoor product model number and coil model number as appropriate. Federal Tax Credit Program for Qualifying Residential Indoor Comfort Systems The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (as extended by the Protecting Americans from Tax Hikes Act of 2015) provides for federal tax credits on qualifying, high-efficiency residential heating and cooling products and systems (HVAC) through December 31, 2016. This program is an extension of the federal tax credits that were in effect during 2009, 2010, and 2011. The maximum amount an eligible homeowner may receive in federal tax credits for purchasing and installing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, is now 10% of the cost of the improvement, including installation costs, up to  $500 (with maximum per-category amounts listed below).

The $500 tax credit amount is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2016. If a residential homeowner has already claimed single-family home tax credits of $500 or more from improvements made prior to 2016, he or she cannot claim any new tax credits during 2016. All furnaces and boilers, whether fueled by natural gas, propane or fuel oil, must have an AFUE rating of 95% or higher to be eligible. Products or units must be installed between January 1, 2009, and December 31, 2016, to be eligible for tax credits. Electricity consumption of no more than 2% of the total energy use of the furnace Natural Gas, Propane, Oil Furnaces or Boilers 95% AFUE rating —Tax Certificate 16 SEER / 13 EER —Tax Certificate 15 SEER / 12.5 EER / 8.5 HSPF —Tax Certificate 14 SEER / 12 EER —Tax Certificate 14 SEER / 12 EER / 8 HSPF —Tax Certificate This information is provided for discussion purposes only and is provided as a generic guideline.