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Energy Efficiency Federal Tax Credit Incentives
Jan 06, 2017

When you save on energy, you’re not only lowering your power costs, but you can earn incentives from the federal government. Currently, a large number of tax credits are available for purchases made of certified ENERGY STAR products, as well as, other efficiency upgrades made to residences.1

$300 Tax Credit

Biomass stoves burn biomass fuel, which includes agricultural crops such as trees, wood/wood scraps (including wood pellets and plats), grasses, residues, and fibers. Wood stoves that meet 2020 EPA clean air standards must have a thermal efficiency rating of at least 75% qualify.2

Some other appliances that also qualify for the tax credit (if they’re ENERGY CERTIFIED) are heat pumps, air conditioners, gas powered boilers, electric water heaters, and gas water heaters. Gas water heaters are recognized as ENERGY STAR most efficient for 2016. that if they’re certified by ENERGY STAR


$150 Tax Credit

Gas furnaces that are ENERGY STAR certified (except those for U.S. South) meet the requirements for the furnace tax credit. In addition, gas and oil furnaces that have earned the ENERGY STAR include fans that meet the requirements of the fan tax credit.  (an additional $50 credit).2


10% Tax Credit

Insulation upgrades, including batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place qualify for this credit, as do products that air seal (as long as they come with a Manufacturers Certification Statement); these include: weather stripping, house wrap, and caulk or spray foam in a can designed for air sealing. Credit does not cover installation costs.2

Roofs that are ENERGY STAR certified metal and asphalt with pigmented coatings or cooling granules designed to reduce heat gain qualify for this credit. The credit does not cover labor costs. A maximum combined credit limit of $500 is in place.2

Windows, doors and skylights that earn the ENERGY STAR save energy, by improving comfort and help protect the environment. Can earn the 10% credit (not including installation) with a maximum of up to $200 for windows and skylights and up to $500 for doors, with a maximum combined credit of $500. Credit does not cover installation or labor costs.2


30% Tax Credit

Geothermal heat pumps which meet the requirements of the ENERGY STAR program which are put into effect at the time of the expenditure qualify, as do small wind turbines with a nameplate capacity of no more than 100 kilowatts, and solar water heaters or photovoltaic systems designed for home use with a 50% power production and exclusive of swimming pool or hot tub use. Fuel cells with an efficiency of at least 30% and a capacity of at least 0.5 kW also qualify. Tax credit includes installation costs.2

To find out more about these tax credits and how to apply and qualify, visit



Ashley Leach

Ashley Leach is a freelance writer and digital content marketer with a background in journalism, digital reporting, and marketing for numerous industries. She's found her perfect fit at North American Power in writing about home maintenance and repairs, energy efficiency, and smart home technology.