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U.S. Tax Credits

Taxpayers who upgrade their homes to make use of renewable energy may be eligible for a tax credit to offset some of the costs. As of the 2018 tax year, the federal government offers the Nonbusiness Energy Property Credit. The credits are good through 2019 and then are reduced each year through the end of 2021. Claim the credits by filing Form 5695 with your tax return.

Qualifying products include:


  • Geothermal heat pumps that meet federal Energy Star guidelines.

  • According to the U.S. Department of Energy, you can claim the Residential Energy Efficiency Property Credit for solar, wind, and geothermal equipment in both your principal residence and a second home.

  • The credit is equal to 30% of the cost, including installation. There is no upper limit on the amount of the credit for solar, wind and geothermal equipment, but the maximum tax credit for fuel cells is $500 for each half-kilowatt of power capacity, or $1000 for each kilowatt.

  • Tax Credit Amount:  $300     

  • Heat Pump Requirements: Split Systems: HSPF >= 8.5 EER >= 12.5 SEER >= 15

  • Package systems: HSPF >= 8 EER >= 12 SEER >= 14

  • Air Conditioner Requirements: Split Systems: SEER>= 16 EER >= 13

  • Package systems: SEER >= 14 EER >= 12

  • Tax Credit Amount:  $150 for furnace
                                         $50 for advanced main air circulating fan

  • Requirements Furnace: AFUE > 95

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