Home > Federal Tax Credits for Energy Efficiency
Page Last Updated: 1-3-2012
Federal Tax Credits for Consumer Energy Efficiency
Please note, not all ENERGY STAR qualified products qualify for a tax credit. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.
What You Need to Know
- What is included in the 2011 Federal Tax Credit?
- How do I apply for my Federal Tax Credit?
What is included in the Tax Credit?
- Tax Credit:
- 30% of cost with no upper limit
- Expires:
- December 31, 2016
- Details:
- Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
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Geothermal Heat Pumps
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Geothermal heat pumps are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. Because they use the earth's natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available.
Requirements
Must meet the requirements of the ENERGY STAR program which are in effect at the time of the expenditure.
Water-to-Air
Closed Loop:
EER ≥ 17.1
COP ≥ 3.6
Open Loop:
EER ≥ 21.1
COP ≥ 4.1Water-to-Water
Closed Loop:
EER ≥ 16.1
COP ≥ 3.1
Open Loop:
EER ≥ 20.1
COP ≥ 3.5Direct Expansion:
EER ≥ 16
COP ≥ 3.6Tax Credit includes installation costs.
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Small Wind Turbines (Residential)
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A wind turbine collects kinetic energy from the wind and converts it to electricity that is compatible with a home's electrical system.
Requirements
Must have a nameplate capacity of no more than 100 kilowatts.
Tax Credit includes installation costs.
More Information
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Solar Energy Systems
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Solar Water Heaters
Solar water heaters come in a wide variety of designs, all including a collector and storage tank, and all using the sun's thermal energy to heat water. Solar water heaters are typically described according to the type of collector and the circulation system.
Requirements
At least half of the energy generated by the "qualifying property" must come from the sun. The system must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.
Note: The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling.
Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.
Tax Credit includes installation costs.
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Solar Panels (Photovoltaic Systems)
Solar Panels or Photovoltaic Systems are solar cells that capture light energy from the sun and convert it directly into electricity.
Requirements
Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.
More Information
-
- Tax Credit:
- Credit Details: 30% of the cost, up to $500 per .5 kW of power capacity
- Expires:
- December 31, 2016
- Details:
- Existing homes & new construction qualify. Must be your principal residence. Rentals and second homes do not qualify.
-
Fuel Cells (Residential Fuel Cell and Microturbine System)
-
Fuel cells are an important enabling technology for the hydrogen economy and have the potential to revolutionize the way we power our nation, offering cleaner, more-efficient alternatives to the combustion of gasoline and other fossil fuels.
Requirements
Efficiency of at least 30% and must have a capacity of at least 0.5 kW.
Tax Credit includes installation costs.
More Information
-
What You Need to Know
- What is included in the 2011 Federal Tax Credit?
- How do I apply for my Federal Tax Credit?
What is included in the Tax Credit?
- Tax Credit:
- 30% of cost with no upper limit
- Expires:
- December 31, 2016
- Details:
- Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
-
Geothermal Heat Pumps
-
Geothermal heat pumps are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. Because they use the earth's natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available.
Requirements
Must meet the requirements of the ENERGY STAR program which are in effect at the time of the expenditure.
Water-to-Air
Closed Loop:
EER ≥ 17.1
COP ≥ 3.6
Open Loop:
EER ≥ 21.1
COP ≥ 4.1Water-to-Water
Closed Loop:
EER ≥ 16.1
COP ≥ 3.1
Open Loop:
EER ≥ 20.1
COP ≥ 3.5Direct Expansion:
EER ≥ 16
COP ≥ 3.6Tax Credit includes installation costs.
-
-
Small Wind Turbines (Residential)
-
A wind turbine collects kinetic energy from the wind and converts it to electricity that is compatible with a home's electrical system.
Requirements
Must have a nameplate capacity of no more than 100 kilowatts.
Tax Credit includes installation costs.
More Information
-
-
Solar Energy Systems
-
Solar Water Heaters
Solar water heaters come in a wide variety of designs, all including a collector and storage tank, and all using the sun's thermal energy to heat water. Solar water heaters are typically described according to the type of collector and the circulation system.
Requirements
At least half of the energy generated by the "qualifying property" must come from the sun. The system must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.
Note: The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling.
Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.
Tax Credit includes installation costs.
-
Solar Panels (Photovoltaic Systems)
Solar Panels or Photovoltaic Systems are solar cells that capture light energy from the sun and convert it directly into electricity.
Requirements
Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.
More Information
-
- Tax Credit:
- Credit Details: 30% of the cost, up to $500 per .5 kW of power capacity
- Expires:
- December 31, 2016
- Details:
- Existing homes & new construction qualify. Must be your principal residence. Rentals and second homes do not qualify.
-
Fuel Cells (Residential Fuel Cell and Microturbine System)
-
Fuel cells are an important enabling technology for the hydrogen economy and have the potential to revolutionize the way we power our nation, offering cleaner, more-efficient alternatives to the combustion of gasoline and other fossil fuels.
Requirements
Efficiency of at least 30% and must have a capacity of at least 0.5 kW.
Tax Credit includes installation costs.
More Information
-
