Did you know you could save money on your utility bills and receive a tax credit for certain energy efficiency home improvements?

The maximum credit amount is 30% of the cost of an energy efficient qualifying home improvements, up to certain annual limits for each type of improvement. Further details on the limits for specific improvements and categories of improvements can be found in the column to the right. The total annual credit that can be claimed is $3,200.

Note: The credit can cover both the purchase and installation costs for heat pumps, energy efficient AC units, furnaces/ boilers, water heaters, biomass stoves/ boilers, and electric panel/circuit board upgrades. For building envelope components (insulation, doors, windows, skylights), only the purchase can be covered. Requesting an itemized invoice or receipt from your contractor/installer can be helpful.

Total Annual Credit Limits:

$2,000 (for heat pumps, heat pump water heaters, biomass stoves/boilers)

• $2,000: heat pumps

• $2,000: heat pump water heaters

• $2,000: biomass stoves/boilers $1,200 (for all other home         improvements)

• $600: efficient AC units

• $600: efficient furnaces/boilers

• $600: efficient water heaters

• $600: electric panel/circuit upgrades

• $1,200: insulation/air sealing

• $500: exterior doors ($250 each)

• $600: exterior windows/skylights

• $150: home energy audits

$3,200 (overall, with no lifetime limit) Insulation, exterior doors, exterior windows, and skylights must be installed at taxpayer’s principal residence, which must be owned by taxpayer. Other home improvements may be installed at any residence used by the taxpayer, and the taxpayer may be a tenant. Landlords, who are not also residents of the dwelling, may not claim this credit. Note: The Energy Efficient Home Improvement Credit cannot be applied to new construction.

EXAMPLE

Heat Pump Water Heater $2,250

Labor/Installation $750

Total Cost $3,000

Tax Credit (30% of cost) $900

Cost Less Credit $2,100