Don't Forget Your Energy Star Credit on Your Tax Return!

computer mouse on top of paperBy now you should have received all of your tax information for 2015. When you file your federal taxes, make sure to tell your accountant about any ENERGY STAR recognized products you purchased last year, as they could qualify for a tax credit.

Which appliances qualify for a tax credit?

You will receive a tax credit for some ENERGY STAR certified appliances as well as roofs, windows, doors, skylights, insulation and more. According to energystar.com, The following HVAC componenents are eligible as long as they meet these requirements:

  • Central Air Conditioning units – Air conditioning units recognized as ENERGY STAR Most Efficient 2016 meet the requirements for this tax credit.
  • Air Source Heat Pumps – All ENERGY STAR units qualify.
  • Gas, Propane, or Oil Hot Water Boiler – Gas powered boilers that are recognized as ENERGY STAR Most Efficient 2016 meet the requirements for this tax credit.
  • Gas, Propane, or Oil Furnaces and Fans – Gas furnaces that are ENERGY STAR certified (except those for U.S. South only) meet the requirements for the furnace tax credit.  Gas and oil furnaces that have earned the ENERGY STAR include fans that meet the requirements of the fan tax credit.

How much is my credit worth?

You may already be noticing monthly savings on your energy bills since purchasing your new furnace, boiler, heat pump or A/C unit. Your Harford County tax preparer will want to verify these numbers, but here are the tax credit amounts listed on the ENERGY STAR website:

  • Central Air Conditioning units – $300
  • Air Source Heat Pumps – $300
  • Hot Water Boiler – $150
  • Furnace – $150 for furnace, $50 for advanced main air circulating fan

If you’re wondering about specific products you purchased, search for them on ENERGY STAR’s Product Finder. 

Will I get a credit on my 2016 tax return for this year’s HVAC purchases?

If you purchase an ENERGY STAR rated unit that qualifies for a tax credit, then yes! When you are ready to purchase a new high-efficiency unit, call us at One Hour Heating & Air Conditioning® of Aberdeen and we would love to make some recommendations for you. There are a lot of great brands and products out there so the choices are many. Let us tell you about our experiences and give you some guidance.

We can even give you tips on how to make use out of that tax refund in your home! We look forward to talking to you.