Energy Efficient Heat Pumps Tax Credit

The federal government offers energy efficiency tax credits for qualified hvac improvements homeowners may be able to claim 25c tax credits equal to 10 of the installed costs up to 500 maximum.

Energy efficient heat pumps tax credit.

An electric heat pump that achieves the highest efficiency tier established by the consortium for energy efficiency cee as in effect on january 1 2009. Credits may even be higher for renewable energy like geothermal systems. The maximum 25c high efficiency heating and cooling equipment federal tax credit reimbursement is 300. Qualifying properties are solar electric property solar water heaters geothermal heat pumps small wind turbines and fuel cell property.

When will the program expire. Small wind turbines residential solar energy systems including solar water heaters fuel cells. This tax credit can also be taken when installing a pump in a second home. Most energy star certified water heaters meet the requirements of this tax credit.

This credit is worth a maximum of 500 for all years combined from 2006 to its expiration. Geothermal heat pumps utilize the heat coming from the earth so they re some of the most efficient upgrades you can make. Of that combined 500 limit a maximum of 200 can be for windows. 300 requirements uniform energy factor uef 0 82 or a thermal efficiency of at least 90.

The 25c tax credit extends through12 31 2020. An electric heat pump water heater that yields a uniform energy factor of at least 2 2 in the standard department of energy test procedure. Use up to 30 less energy in your home by outfitting it with energy star certified products available across more than 75 categories. The tax credit for builders of energy efficient homes and tax deductions for energy efficient commercial buildings have also been retroactively extended through december 31 2020.

There are tax credits for certain. Renewable energy tax credits for fuel cells small wind turbines and geothermal heat pumps now feature a gradual step down in the credit value the same as those for solar energy systems. Up to 10 of the cost to 500 or a specific amount from 50 to 300 300 maximum credit available for qualifying central air conditioners heat pumps packaged units and ductless mini split systems 150 maximum credit available for qualifying furnaces and boilers. Water heaters account for 12 of the energy consumed in your home.

The renewable energy tax credit for 2020 is 30 of the cost of the geothermal or other qualifying system. Yes the residential energy efficient property credit allows for a credit equal to the applicable percent of the cost of qualified property.