What You Need To Know About Federal Residential Energy Tax Credits

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, 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.

Federal Tax Credits for Efficient Air Conditioners Extended through 2016

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?

DSIRE™, the Database of State Incentives for Renewables & Efficiency, has more information here.


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Jeff Berkun - Owner of Berkun Air, West Palm Beach

Berkun-Air-Palm-Beach-Trane-LogoFounded in 1982, Jeff Berkun has run his business based on providing customers with outstanding service and expert advise.

Berkun Air is a authorized Trane Comfort Specialist with top tier status.  This means that Berkun is authorized to perform warranty work on all Trane products.  Berkun Air is also one of the few air conditioning companies to be awarded an A+ Rating from the Palm Beach County Consumer Affairs Division.

If you are an home owner, an architect or building in #PalmBeach, consider Berkun Air.  Give us a call at (561) 842-4362.

About Berkun Air Expert

Berkun Air serves Palm Beach Country (Florida), including Palm Beach, West Palm Beach, Highland Beach, Boca Raton, Gulf Stream, Ocean Ridge, Hypoluxo Island, Manalapan, South Palm Beach, Delray Beach, Palm Beach Gardens, North Palm Beach, Royal Palm Beach, Boynton Beach, Jupiter, Lake Worth and Wellington.
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