top of page
Air Conditioning Checking

Home Improvement Tax Credits

Updated: Feb 10, 2023

Did you upgrade your home to improve energy efficiency or make use of renewable energy? You could be eligible for tax credits to cut off some of the costs! Read on to learn what does and doesn’t qualify and start saving.

Tax Calculation

Residential Energy Efficiency Property Credit

The Residential Energy Efficiency Property Credit and the Nonbusiness Energy Property Credit, are valid through 2019 and include solar, wind, geothermal and fuel-cell technology products such as:

Air conditioning systems — Central air conditioning systems recognized as Energy Star Most Efficient 2016 meet the requirements for a tax credit of $300. The requirements for split systems are a SEER rating of 16 or greater and an EER rating of 13 or greater. For packaged systems, the requirements are a SEER rating of 14 or higher and an EER rating of 12 or higher.

Solar panels — Solar panel or photovoltaics used to generate electricity. Keep in mind, the tax credit only applies if the electricity is used in your home.

Solar-powered water heater — Homeowners who invest in a solar-powered water heater are eligible for a tax credit if the water heated by the system is used inside of their home and at least half of the home’s water-heating capacity is solar. Solar heaters for swimming pools and hottubs are not eligible.

Geothermal heat pump — Geothermal heat pumps that meet federal Energy Star guidelines are eligible for a tax credit.

Fuel cells — Fuel cells that rely on a renewable resource (such as hydrogen) to generate power are eligible for a tax credit.

How Do I Claim My Renewable Energy Tax Credit?

According to the U.S. Department of Energy, homeowners can claim the Residential Energy Efficiency Property Credit for solar, wind, and geothermal equipment in both their principal residence and a second home. For fuel-cell equipment, the tax credit only qualifies if it is installed in your principal residence.

How Much Is the Tax Credit Worth?

If you are eligible, the tax credit is equal to 30 percent of the cost of the upgrade (this includes installation). While there is no upper limit on the amount of the credit for solar, wind and geothermal equipment, the maximum tax credit for fuel cells is $1,000 for each kilowatt of power.

Increase Your Energy Efficiency With a New HVAC System

Replacing your air conditioning system doesn’t have to feel like a daunting task. At Energy Air, we provide free in-home consultations, which is our no-pressure method of identifying your needs and presenting the best comfort solution to you.

Our efficient air conditioning systems are designed to keep you comfortable for less and can help increase your comfort while decreasing your energy bills. If you’d like to learn more about replacing your AC (and how you can take advantage of an energy tax credit) contact us today.

5 views0 comments

Recent Posts

See All


Contact Energy Air

Whether you need a single air conditioning unit installed or a complete air conditioning system retrofit, our team of HVAC experts will handle it. Have questions or would like to discuss your project? Give us a call today to talk to one of our friendly team members, or schedule your appointment online.

Orlando: (407) 501-6275 | Tampa: (813) 314-7261

bottom of page