Tax Credits

Tax credits are now available for home improvements:

  • Must be "placed in service" from January 1, 2009 through December 31, 2010
  • Must be for taxpayer's principal residence
  • $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and windmills which are not subject to this cap, and are in effect through 2016
  • Must have a Manufacturer Certification Statement to qualify
  • For record keeping, save your receipts and the Manufacturer Certification Statement
  • Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) - use IRS Tax Form 5695 (2009 version) - it will be available late 2009 or early 2010
  • If you are building a new home, you can qualify for the tax credit for the geothermal heat pumps, but not the tax credits for HVAC, or non-solar water heaters.

Consumers Energy

Consumers Energy

For more information on the Heating & Cooling rebates offered by Consumers Energy, please visit this page.

HVAC Tax Credits

Central A/C

Split Systems:
EER >=13
SEER >= 16

Package systems:
EER >= 12
SEER >= 14

30% of cost, up to $1,500

For a list of qualified products, go to the Consortium for Energy Efficiency product directory, click on Air Conditioners, then in the "CEE Tier" enter "Residential Advanced Tier 3" for CAC Split Systems, and "Residential Tier 2" for CAC Package Systems and ASHPs.

Air Source Heat Pumps

Split Systems:
HSPF >= 8.5
EER >= 12.5
SEER >= 15

Package systems:
HSPF >= 8
EER >= 12
SEER >= 14

30% of cost, up to $1,500

Natural Gas or Propane Furnace

AFUE >= 95

30% of cost, up to $1,500

For a list of qualifying products go to the Gas Appliance Manufacturing Association

Oil Furnace

AFUE >= 90

30% of cost, up to $1,500

Gas, Propane, or Oil Hot Water Boiler

AFUE >= 90

30% of cost, up to $1,500

Advanced Main Air Circulating Fan

No more than 2% of furnace total energy use

30% of cost, up to $1,500

Water Heater Tax Credits

Gas, Oil, Propane Water Heater

Energy Factor >= 0.82 or a thermal efficiency of at least 90%.

30% of cost, up to $1,500

Not all ENERGY STAR gas storage and gas condensing water heaters will qualify for the tax credit. All ENERGY STAR gas tankless models will qualify.

All ENERGY STAR gas tankless water heaters will qualify.

View ENERGY STAR criteria.

For a partial list of qualifying products go to the Air Conditioning, Heating, and refrigeration Institute (AHRI)

Electric Heat Pump Water Heater

Same criteria as ENERGY STAR: Energy Factor >= 2.0

30% of cost, up to $1,500

All ENERGY STAR electric heat pump water heaters qualify for the tax credit.

*For more information on Tax Incentives, please go to the Database of State Incentives for Renewables & Efficiency