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Federal Energy Tax Credit

The following information covers all of the Federal Tax Credits for Energy Efficiency.



Solar Energy Credit: To focus in on credits for your solar energy device or system, see the links to eligible products under Part II.

What is the Federal Tax Credit for Energy Efficiency?

On this page: Schedule of Federal Energy Tax Credits Eligible products and systems

This is a U.S. Environmental Protection Agency/U.S. Department of Energy program where you can get a federal tax credit when installing energy-efficient product or system in your home.


Certain devices and systems qualify for solar energy credits.

The schedule of tax credits comes in three parts: 

Part I: Until December 31, 2010 only:

• You can claim a tax credit of 30% of the cost of the eligible product up to $1,500.00.
• This must be installed in an existing home that is your principal residence.  New homes or rentals do not qualify for this credit. 
• See below for products that qualify under Part I.

Part II: Until December 31, 2016:

• You can claim a 30% tax credit of the cost with no upper limit.
• This must be an existing home or new home. Your principal residences as well as your second home qualify. Rentals are not included. 
• See below for products that qualify under Part II.

Part III:  Until December 31, 2016:

• You can claim a 30% tax credit of the cost up to $500.00 per 0.5 kW (kilowatt) of power capacity.
• Your existing home or construction of a new residence both apply. This must be your principal residence.  Neither rentals nor second homes qualify for this credit. 
• See below for products that qualify under Part III.

What products qualify? What is covered?

Under Part I, you can claim the credit for these approved products:

• Biomass Stoves
• Heating, Ventilating, Air Conditioning (HVAC)
• Insulation
• Roofs (Metal and Asphalt)
• Water Heaters (non-solar)
• Windows and Doors

 
Under Part II, you can claim the Federal Energy Credit for the following types of approved products:

• Geothermal Heat Pumps
• Small Wind Turbines (Residential)
• Solar Energy Systems

 
Under Part III, you can claim the Federal Energy Credit for the following types of approved products:

• Fuel Cells (Residential Fuel Cell and Microturbine System)

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