Tax Credit Program
Federal Tax Credit Program for Qualifying Residential Indoor Comfort Systems
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (as
extended by the Protecting Americans from Tax Hikes Act of 2015) provides for federal tax credits
on qualifying, high-efficiency residential heating and cooling products and systems (HVAC)
through December 31, 2016.
This program is an extension of the federal tax credits that were in effect during 2009, 2010, and
· The maximum amount an eligible homeowner may receive in federal tax credits for purchasing
and installing qualifying products, whether those purchases are in the form of upgraded
insulation, windows, HVAC equipment or other eligible improvements, is now 10% of the cost
of the improvement, including installation costs, up to $500 (with maximum per-category
amounts listed below).
· The $500 tax credit amount is reduced by the total amount of residential energy property
credits a homeowner has claimed for purchases between 2006 and 2016. If a residential
homeowner has already claimed single-family home tax credits of $500 or more from
improvements made prior to 2016, he or she cannot claim any new tax credits during 2016.
· All furnaces and boilers, whether fueled by natural gas, propane or fuel oil, must have an AFUE
rating of 95% or higher to be eligible.
· Products or units must be installed between January 1, 2009, and December 31, 2016, to be
eligible for tax credits.