Federal Tax Credit

Federal Tax Credits: Retroactive for 2015 and extended through 2016

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. This includes purchases of heating, cooling and water heating equipment made in 2015.

Geothermal system tax credits and solar water heaters are unaffected by these changes and remain in place through 12/31/2016.

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.


Here's what you need to know about these tax credits:

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.

Geothermal system tax credits and solar water heaters are unaffected by these changes and remain in place through 12/31/2016.

Note: State, Local and Utility rebates may still be available in your respective markets for residential energy products. Please visit the "Homeowner Resource Center" for a list of energy efficiency tax credits by State.

Product Type

Tax Credit Specification

Tax Credit

Effective Date

Find Qualifying Equipment

Residential Central A/C

Split:
EER >= 13
and
SEER >= 16
Packaged:
EER >= 12
and
SEER >= 14
 

The tax credit is for $300

January 1, 2015 – December 31, 2016

Go to:
Air Conditioners and Air Conditioner Coils and select Yes for 'Eligible for Federal Tax Credit'.

Residential Air-Source Heat Pumps

Split:
HSPF >= 8.5
and
EER >= 12.5
and
SEER >= 15
Packaged:
HSPF >=8
and
EER >= 12
and
SEER >= 14
 

The tax credit is for $300

January 1, 2015 – December 31, 2016

Go to:
Heat Pumps and Heat Pump Coils or Variable Speed Mini-Split and Multi-Split Heat Pumps and select Yes for 'Eligible for Federal Tax Credit'.

Residential Gas, Oil, Propane Furnace or Hot Water Boiler

Furnaces:
Gas >= 95% AFUE
Oil >=95% AFUE
Propane >=95%
AFUE
Boilers:
AFUE>=95%
 

The tax credit is for $150

January 1, 2015 – December 31, 2016

Go to:
Boilers/Furnaces and select Yes for Tax Credit Eligible under Advanced Search

Advanced
Main Air
Circulating Fan

No more than 2% of furnace total energy use. Read this IRS Guidance if the fan qualifies, but the furnace does not. Read AHRI Safe Harbor Proposals to IRS.
 

The tax credit is for $50

January 1, 2015 – December 31, 2016;

 

Residential Gas, Oil, Propane Water Heater

Energy Factor
>=0.82
or
Thermal Efficiency
>=0.90

The tax credit is for $300

January 1, 2015 – December 31, 2016

Go to: Residential Water Heaters or Commercial Water Heaters and select Yes for Tax Credit Eligible under Advanced Search

Residential Electric Heat Pump Water Heater

Energy Factor >= 2.0

The tax credit is for $300

January 1, 2015 – December 31, 2016

Go to: Residential Water Heaters/Commercial Water Heaters and select Yes for Tax Credit Eligible under Advanced Search

*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.
Contact us here