Federal Solar Tax Credit – Available through 2021
The U.S. government offers a Solar Tax Credit, 25D, for homeowners who purchase and install equipment that uses solar energy to generate electricity.
What it covers
- Up to 9% of the total retail cost* of the Solar-Ready Heat Pump or Air Conditioner that’s at the heart of the SunSource® Home Energy System, when solar modules are applied.
- 30% of the cost with no upper limit on solar module installation**
- Existing homes and new construction qualify
- Both principal residences and second homes qualify
- Rentals do not qualify
Federal HVAC Tax Credit – Available for equipment purchased and installed in 2012 – 2017
In February 2018, the U.S. government renewed the 25C tax credit for high-efficiency heating and cooling equipment. This credit is offered as part of a larger energy-efficiency incentive for home improvements.
What it covers
- Up to 10% of the cost to $500, or a specific amount from $50 to $300
- $300 maximum credit available for qualifying central Air Conditioners, Heat Pumps, Packaged Units and Ductless Mini-Split Systems
- $150 maximum credit available for qualifying Furnaces and Boilers
- Equipment must be installed in an existing home and your principal residence; rentals or new construction do not qualify
- If you claimed $500 or more for enhancements to your home’s exterior (windows, doors, skylights, insulation, roofing, etc.) from 2006 to 2014, your HVAC purchase made in 2012-2017 will be ineligible
- If you claimed $500 or less, you may qualify for a credit, but you may not get the full dollar amount specified