Federal Incentives for Renewables and Efficiency
Visit Energy Star's Website For a Complete Listing of Tax Credits: EnergyStar.gov
Heating, Cooling, and Water Heating Equipment
Purchasers of qualified energy efficient property are eligible for tax credits up to the total expenditures on such property. The credit can also be applied to labor costs for assembly and original installation of this property. Eligible property and maximum credit amounts are as follows:
- electric heat pump water heaters [$300];
- electric heat pumps [$300];
- geothermal heat pumps [$300];
- central air conditioners [$300];
- natural gas, propane, or oil water heaters [$300];
- natural gas, propane, or oil furnace or hot water boilers [$150]; and
- advanced main air circulating fans [$50].
Performance and quality standards for tax credit eligibility vary by technology. See 26 USC § 25C above for details. In addition, the Internal Revenue Service (IRS) has provided the following interim guidance, pending the issuance of regulations, relating to the credit: IRS Notice 2006-26.