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Claim Tax Credits Around Your Home

Posted On: February 17, 2017
Money tax return

If you found yourself in need of a new furnace or air conditioner this past year, you might be able to claim a tax credit when you fill out your 1040. Here are a few items that may qualify, according to the EPA.

Air Source Heat Pumps

If your heat pump has the EnergyStar certification, you get a tax credit in the amount of $300. A major requirement is that you had it installed sometime between January 1, 2011 and December 31,2016. Also, if you put it in new construction or rental property, you aren’t eligible. Tax Form 5695 from the IRS is what you need to make your claim. Most tax professionals or tax software will be able to walk you through what’s needed.

Central Air Conditioner

The rules for this are similar to heat pumps. If qualified for the credit, you get a $300 credit on your taxes. The EPA indicated that there is not a consumer-friendly list of all eligible units, so check with the company that installed yours.

Gas, Propane or Oil Hot Water Boiler

Those that are recognized as most efficient by the EPA will meet the requirements for this $150 tax credit. Boilers, like heat pumps, only qualify if you install them into your primary residence. You’ll need IRS form 5695 along with a Manufacturer’s Certification Statement to make your claim.

Gas, Propane or Oil Furnaces and Fans

Gas furnaces that are EnergyStar certified meet the requirements of the $150 credit. Also, gas and oil furnaces that have earned the certification likely an advanced main air circulating fan that meet the requirements for a $50 tax credit. There are some other stipulations you’ll need to know about before making the claim. This one, like boilers, also requires form 5695 and a Manufacturer’s Certification Statement.


As with any income tax related information, it is recommended that you speak with a certified tax advisor before making any claims. If you have questions about any unit that we installed for you this year, feel free to contact us. While purchasing new heating or air conditioning systems is not something you generally brag about, you’ll definitely find yourself smiling if it helps you out with the IRS.

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