Tax Credits

Claim Tax Credits for Improving Your Home’s Energy Efficiency!

Take advantage of tax credits by opting for ENERGY STAR-certified equipment. These products are independently certified to save energy, ensuring efficiency you can trust.

Investing in ENERGY STAR products not only benefits your energy bills but also makes financial sense. Combine tax credits with available rebates to make the switch to cleaner energy more affordable.

And with most of the six elements of an ENERGY STAR Home Upgrade covered, it’s even easier to make your home more energy efficient.

Don’t miss out on this opportunity to save money and contribute to a cleaner future. Start making energy efficiency improvements to your home today and reap the benefits of available tax credits.

Types Of Tax Credits

Starting in 2022, you can now benefit from federal income tax credits when you make energy efficiency improvements to your home. These tax credits will be available until 2032, giving you plenty of time to take advantage of this opportunity.

For split systems, ENERGY STAR-certified equipment with a SEER2 rating of 16 or higher is eligible. All ENERGY STAR-certified packaged systems are also eligible.

Please note that eligible equipment must meet or exceed the highest efficiency tier established by the Consortium for Energy Efficiency as of the beginning of the calendar year, excluding any advanced tiers. The eligibility requirements outlined above fulfill this requirement.

There are also annual aggregate limits on energy-efficient home improvement tax credits. The overall total limit for a tax credit in one year is $3,200. This includes a limit of $1,200 for a combination of home envelope improvements (such as windows, doors, skylights, insulation, and electrical work) in addition to furnaces, boilers, and central air conditioners. Heat pumps, heat pump water heaters, and biomass stoves/boilers have a separate annual total limit of $2,000. It is important to note that ENERGY STAR-certified geothermal heat pumps have their own separate tax credit and are not counted towards these limits.

ENERGY STAR offers two certifications for heat pumps: a general certification and a cold climate certification.

In general, any ducted heat pump with the ENERGY STAR label is eligible for tax credit. Certified mini-split systems (non-ducted) are also eligible if they meet the following criteria:

SEER2 > 16
EER2 > 12
HSPF2 > 9

For systems with the ENERGY STAR Cold Climate designation, eligible options include:

Ducted systems with EER2 > 10
Mini-splits with:
SEER2 > 16
EER2 > 9
HSPF2 > 9.5

Please note that the information provided here is the most current available regarding eligible Air-Source heat pumps for the tax credit. However, these eligibility requirements are subject to change based on the final CEE Criteria and the Internal Revenue Service (IRS).