Eligible Products for Energy Efficiency Tax Credits
What Products are Eligible?
Most heat pumps, central air conditioners, mini-splits, gas water heaters, and electrical panel upgrades qualify for the Energy Efficiency Home Improvement Tax Credit. Specifically, Energy Star has established criteria each product must meet or exceed to qualify. For every eligible product we offer, we've detailed out this criteria and provided convenient links to Energy Star where you can verify this information.
Heat Pumps & Mini-Splits
According to Energy Star, most ducted heat pumps and certified mini-splits are eligible to recoup 30% of their project cost up to $2,000 dollars per project as a nonrefundable tax credit. To qualify, the product needs to meet or exceed these guidelines:
- SEER2 > 16
- EER2 > 12
- HSPF2 > 9
Among the models that earn the ENERGY STAR Cold Climate designation, eligible systems are:
- ducted with EER2 > 10
- mini-splits with
- SEER2 > 16
- EER2 > 9
- HSPF2 > 9.5
Note: Under the tax code, eligible equipment must “meet or exceed the highest efficiency tier (not including any advanced tier) established by the Consortium for Energy Efficiency which is in effect as of the beginning of the calendar year.” The eligibility described above is consistent with this requirement.
Central Air Conditioners
According to Energy Star, central air conditioners (separate from heat pumps) are eligible to recoup 30% of their project cost up to $600 per project as a nonrefundable tax credit. To qualify, the product needs to meet or exceed these guidelines:
For split systems, ENERGY STAR certified equipment with SEER2 > 16 is eligible. All ENERGY STAR certified packaged systems are eligible.
Note: Under the tax code, eligible equipment must “meet or exceed the highest efficiency tier (not including any advanced tier) established by the Consortium for Energy Efficiency which is in effect as of the beginning of the calendar year.” The eligibility described above is consistent with this requirement.
Electrical Panel Upgrades
According to Energy Star, central air conditioners (separate from heat pumps) are eligible to recoup 30% of their project cost up to $600 per project as a nonrefundable tax credit. To qualify, the product needs to meet or exceed these guidelines:
Any improvement to, or replacement of, a panelboard, sub-panelboard, branch circuits, or feeders which:
- is installed in a manner consistent with the National Electric Code,
- has a load capacity of not less than 200 amps,
- is installed in conjunction with, and enables the installation and use of:
- any qualified energy efficiency improvements, or
- any qualified energy property (heat pump water heater, heat pump, central air conditioner, water heater, furnace or hot water boiler, biomass stove or boiler)
These provisions make the electrical panel upgrades different from the other eligible items in that they require being necessary for enabling the use of other Energy Star items.
Gas Water Heaters
According to Energy Star, central air conditioners (separate from heat pumps) are eligible to recoup 30% of their project cost up to $600 per project as a nonrefundable tax credit. To qualify, the product needs to meet or exceed these guidelines: