Get Tax Credits for Making Your Home Energy Efficient

Types of Tax Credits

Central Air

For split systems, ENERGY STAR-certified equipment with a SEER2 rating of 16 or higher is eligible. All ENERGY STAR-certified packaged systems are also eligible.

Please note that eligible equipment must meet or exceed the highest efficiency tier established by the Consortium for Energy Efficiency as of the beginning of the calendar year, excluding any advanced tiers. The eligibility requirements outlined above fulfill this requirement.

There are also annual aggregate limits on energy-efficient home improvement tax credits. The overall total limit for a tax credit in one year is $3,200. This includes a limit of $1,200 for a combination of home envelope improvements (such as windows, doors, skylights, insulation, and electrical work) in addition to furnaces, boilers, and central air conditioners. Heat pumps, heat pump water heaters, and biomass stoves/boilers have a separate annual total limit of $2,000. It is important to note that ENERGY STAR-certified geothermal heat pumps have their own separate tax credit and are not counted towards these limits.

To make the most of your tax credits, it is recommended to spread out your home improvements over a few years. For example, if you are considering installing a new air source heat pump and your heating or cooling system is outdated, it would be wise to prioritize optimizing your attic insulation first. By combining these upgrades in one year, you could qualify for a tax credit of up to $1,200 for the insulation and up to $2,000 for the heat pump.

Similarly, if you are planning to replace your windows or doors, you can combine the installation with a heat pump upgrade. This would allow you to claim a $2,000 tax credit for the heat pump, along with tax credits of up to $600 for the windows or skylights, and $500 for two or more doors.

If you decide to replace your water heater the following year, you may be eligible for another 30% tax credit, up to $2,000. Additionally, if an electric panel upgrade is required to accommodate the new water heater, you could qualify for an additional tax credit of up to $600.

Owners of principal residences
To qualify, your home must be an existing property that you live in as your main residence. New constructions and rentals are not eligible.

A principal residence refers to the home where you spend most of your time. It must be located in the United States and can include various types of properties such as houses, houseboats, mobile homes, cooperative apartments, condominiums, and manufactured homes.

heat pump

ENERGY STAR offers two certifications for heat pumps: a general certification and a cold climate certification.

In general, any ducted heat pump with the ENERGY STAR label is eligible for tax credit. Certified mini-split systems (non-ducted) are also eligible if they meet the following criteria:

SEER2 > 16
EER2 > 12
HSPF2 > 9

For systems with the ENERGY STAR Cold Climate designation, eligible options include:

Ducted systems with EER2 > 10
Mini-splits with:
SEER2 > 16
EER2 > 9
HSPF2 > 9.5

Please note that the information provided here is the most current available regarding eligible Air-Source heat pumps for the tax credit. However, these eligibility requirements are subject to change based on the final CEE Criteria and the Internal Revenue Service (IRS).

This credit is available to owners of their principal residence.

To qualify, the upgrades must be made to an existing home that serves as your primary residence. Please note that new construction and rental properties are not eligible for this credit.

A principal residence is defined as the home where you live for the majority of the time and it must be located within the United States. This can include various types of homes such as houses, houseboats, mobile homes, cooperative apartments, condominiums, and manufactured homes.

We have a strategy for you. Instead of doing all your home improvements in one year, consider spreading them out over a few years. Start by optimizing your attic insulation to save on heating and cooling costs. Then, upgrade your heating or cooling system to a new air-source heat pump. By combining these improvements in one year, you could qualify for a tax credit of up to $1,200 for insulation and up to $2,000 for the heat pump.

But wait, there’s more! If you’re also in need of window or door replacements, you can combine those with the heat pump installation. This means you could get a $2,000 credit for the heat pump and up to $600 in tax credits for the windows and skylights, plus another $500 for two or more doors.

And it doesn’t stop there. If you decide to replace your water heater the following year, you could be eligible for another 30% tax credit, up to $2,000. If you need an electric panel upgrade to accommodate the new water heater, you could even get an additional credit of up to $600.

With our strategy, you can make the most of your tax credits while upgrading your home.

Tax Credits in Fresno, Clovis & Surrounding Areas

How to Qualify

Qualify for Tax Credits with ENERGY STAR Equipment
Choose ENERGY STAR-certified equipment to qualify for valuable tax credits. These products are certified to deliver reliable energy savings.

Save Money and Energy
ENERGY STAR products lower your energy bills while helping the environment. Make a smart investment for your home today.

Maximize Savings with Rebates
Combine tax credits with available rebates to make energy-efficient upgrades more affordable. Upgrade your system with confidence.

Upgrade Your Home with ENERGY STAR
Most ENERGY STAR Home Upgrade elements qualify for tax credits. This makes energy-efficient improvements easier than ever.

Act Now for Cleaner Energy and Savings
Start improving your home’s energy efficiency today. Don’t miss this chance to save money and support a cleaner future.

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