Federal Tax Credits for Heating & Air Conditioning Equipment

2020 Federal Tax Credits for Consumer Energy Efficiency

UPDATED JANUARY 2020: The  Non-Business Energy Property Tax Credits have been retroactively extended from 12/31/2017 through 12/31/2020

  • Tax Credit:  10% of cost up to $500 or a specific amount from $50-$300.
  • Expires:  December 31, 2020
  • Details:  Must be an existing home & your principal residence.  New construction and rentals do not apply.

A number of tax credits for residential energy efficiency have been extended for 2020.  These federal 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.

Federal Tax Credits: Central Air Conditioning (CAC)

Air conditioners recognized as ENERGY STAR Most Efficient 2016 meet the requirements for this tax credit.

  • Tax Credit Amount: $300
  • Requirements Split Systems:
    • SEER>= 16
    • EER >= 13
  • Package systems:
    • SEER >= 14
    • EER >= 12

Federal Tax Credits: Gas, Propane or Oil Furnaces and Fans

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 for furnace, $50 for advanced main air circulating fan

An Advanced Main Air Circulating Fan is an efficient fan, or blower motor which blows the air that your furnace heats up through the duct system.

  • Tax Credit Amount: $50
  • Requirements: Must use no more than 2% of the furnace’s total energy.

Federal Tax Credits: Gas, Propane, or Oil Hot Water Boiler

Gas powered boilers that are recognized as ENERGY STAR Most Efficient 2016 meet the requirements for this tax credit.

  • Tax Credit Amount: $150
  • Requirements: AFUE >= 95Tax Credit includes installation costs.

Federal Tax Credits: Air Source Heat Pumps

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

Federal Tax Credits: Water Heaters (non-solar)

Certain 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%.

Electric Heat Pump Water Heater

Most 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

* Unique Indoor Comfort recommends that homeowners consult with a certified tax advisor to ensure they qualify for the available Federal Tax credits.