Federal Tax Credits: Retroactive for 2017

On February 9, 2018, The Bipartisan Budget Act of 2018 was signed into law.Included in this legislation is a one year, retroactive extension of the Nonbusiness Energy Property Credit. Note: State, Local and Utility rebates may still be available in your respective markets for residential energy products installed in 2017. Please visit the “Homeowner Resource Center” for a list of energy efficiency tax credits by State.

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 SureComfort equipment. When does the tax credit expire? This tax credit expired at the end of 2016, however The Bipartisan Budget Act of 2018 retroactively renewed this tax credit effective January 1, 2017, expiring again on December 31, 2017. 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 2017. 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? AHRI (Air-Conditioning, Heating & Refrigeration Institute) has more information here. Note: State, Local and Utility rebates may still be available in your respective markets for residential energy products. Please visit the “Homeowner Resource Center” for a list of energy efficiency tax credits by State.
Product Type Tax Credit Specification Tax Credit Effective Date Find Qualifying Equipment
Residential Central A/C Split: EER >= 13 and SEER >= 16 Packaged: EER >= 12 and SEER >= 14 The tax credit is for $300 January 1, 2015 – December 31, 2017 Go to: Air Conditioners and Air Conditioner Coils and select Yes for ‘Eligible for Federal Tax Credit’.
Residential Air-Source Heat Pumps Split: HSPF >= 8.5 and EER >= 12.5 and SEER >= 15 Packaged: HSPF >=8 and EER >= 12 and SEER >= 14 The tax credit is for $300 January 1, 2015 – December 31, 2017 Go to: Heat Pumps and Heat Pump Coils or Variable Speed Mini-Split and Multi-Split Heat Pumps and select Yes for ‘Eligible for Federal Tax Credit’.
Residential Gas, Oil, Propane Furnace or Hot Water Boiler Furnaces: Gas >= 95% AFUE Oil >=95% AFUE Propane >=95% AFUE Boilers: AFUE>=95% The tax credit is for $150 January 1, 2015 – December 31, 2017 Go to: Boilers/Furnaces and select Yes for Tax Credit Eligible under Advanced Search
Advanced Main Air Circulating Fan No more than 2% of furnace total energy use. Read this IRS Guidance if the fan qualifies, but the furnace does not. Read AHRI Safe Harbor Proposals to IRS. The tax credit is for $50 January 1, 2015 – December 31, 2017
Residential Gas, Oil, Propane Water Heater Energy Factor >=0.82 or Thermal Efficiency >=0.90 The tax credit is for $300 January 1, 2015 – December 31, 2017 Go to: Residential Water Heaters or Commercial Water Heaters and select Yes for Tax Credit Eligible under Advanced Search
Residential Electric Heat Pump Water Heater Energy Factor >= 2.0 The tax credit is for $300 January 1, 2015 – December 31, 2017 Go to: Residential Water Heaters/Commercial Water Heaters and select Yes for Tax Credit Eligible under Advanced Search
*Tax credit forms will be posted by March 30, 2018. If you cannot find the appropriate tax form listed on this website, please contact us at the link below. Please be sure to include your indoor product model, outdoor product model number and coil model number as appropriate. Contact us here