They have renewed the Federal Income Tax Credits for Energy Efficiency

The great news is that a number of tax credits for residential energy efficiency have been renewed. We thought that these had gone away.  These tax credits are available for purchases made in 2016, as well as retroactive to purchases made in 2015. We would have been able to move lots more people toward higher energy efficiency if we had known in advance that they would get some tax credit for making a forward looking decision. Usually but not always if you have qualified for a utility rebate you may also be eligible for some tax relief. Now,it is not all installations that are eligible just those that use highly efficient equipment. But as you are deciding which equipment to buy it can help you invest in the most efficient equipment for your home.

2016 Federal Tax Credits

Tax Credit: 10% of cost up to $500 or a specific amount from $50-$300.
Expires: December 31, 2016
Details: Must be an existing home & your principal residence. New construction and rentals do not apply.

Biomass Stoves
Air Source Heat Pumps
Central Air Conditioning (CAC)
Gas, Propane, or Oil Hot Water Boiler
Gas, Propane or Oil Furnaces and Fans
Insulation
Roofs
Water Heaters (non-solar)
Windows, Doors & Skylights

Tax Credit: 30% of cost with no upper limit
Expires: December 31, 2016
* (Tax credits for Solar Energy Systems are available at 30% through December 31, 2019.
The credit decreases to 26% for tax year 2020; drops to 22% for tax year 2021 then expires December 31, 2021)
Details: Existing homes and new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.

Geothermal Heat Pumps
Small Wind Turbines (Residential)
Solar Energy Systems *

How Do I Apply For The Tax Credit? What Tax Form Do I Need For The Energy Efficiency Tax Credits? You need to file the IRS Tax Form 5695 and submit it with your taxes.Save your receipts and the Manufacturer’s Certification Statement for your records.Below are the requirement for different type of equipment

Central Air Conditioning

Tax  Credit Amount:  $300

Requirements

Split Systems:
SEER>= 16
EER >= 13Package systems:
SEER >= 14
EER >= 12

Air Source Heat Pump

Tax Credit Amount:  $300

Requirements
Split Systems:
HSPF >= 8.5
EER >= 12.5
SEER >= 15Package systems:
HSPF >= 8
EER >= 12
SEER >= 14

Tax Credits: Gas, Propane or Oil Furnaces and Fans

Tax Credit Amount:  $150 for furnace
$50 for advanced main air circulating fan

RequirementsFurnace:
AFUE > 95Fan:
Annual electricity use < 2% of total furnace energy