Appliances That may have access to for the Energy Tax Credit
The federal energy tax credit covers specific appliances that meet Department of Energy efficiency standards. The list includes heat pumps (for heating and cooling), heat pump water heaters, heat pump clothes dryers, central air conditioners, furnaces, boilers, and biomass stoves. You can also claim the credit for certain insulation materials, doors, windows, and roofing materials that reduce heating and cooling load.
Not every appliance in your home qualifies. Standard refrigerators, dishwashers, washing machines, and regular electric dryers do not. The credit is limited to equipment that directly heats, cools, or heats water in your home, plus the building envelope materials that reduce the energy those systems need to use.
The credit amount varies by appliance type. Heat pumps and heat pump water heaters have higher credit amounts than furnaces or air conditioners. Some appliances have a per-unit cap, while others have a lifetime limit across all may have access to equipment you install. The specific dollar amount depends on which appliance you purchase and when you install it.
Key Takeaways
- Heat pumps, heat pump water heaters, heat pump clothes dryers, furnaces, boilers, and biomass stoves are the main appliances that may have access to for the federal energy tax credit.
- The appliance must meet Department of Energy efficiency standards, which means not all models from a manufacturer will may have access to — you need to check the specific unit's specifications.
- Standard appliances like regular refrigerators, dishwashers, washing machines, and electric dryers do not may have access to, even if they are energy-efficient.
- The credit amount ranges from a few hundred to several thousand dollars depending on the appliance type, and some appliances have lifetime limits on how many times you can claim the credit.
- You claim the credit on your federal tax return in the year you install the equipment, not when you purchase it.
How to Verify an Appliance Meets the Standards
Before you buy, check the product's EnergyGuide label or the manufacturer's specifications sheet. The label shows the appliance's energy use and estimated yearly operating cost. For appliances that may have access to for the tax credit, the manufacturer or retailer will often note this on the product page or packaging.
You can also search the Department of Energy's database of certified equipment. The database lists specific models and brands that meet the efficiency thresholds required for the credit. If an appliance is not listed, it does not meet the standard, even if it is labeled as energy-efficient.
Keep the product documentation and the receipt. When you file your tax return, you will need to show proof that the appliance you installed meets the requirements. The IRS may ask for the model number, serial number, and certification details.
Heat Pumps and Heat Pump Water Heaters
Heat pumps are the highest-value appliances under the credit. A may have access to air-source heat pump can earn you up to several thousand dollars, depending on the year and your income level. Ground-source (geothermal) heat pumps have a higher credit amount than air-source models. Heat pump water heaters also may have access to and have their own credit tier.
The heat pump must be installed in your primary residence and must replace an existing heating or cooling system or provide new heating or cooling. If you are adding a second heat pump to a home that already has one, the second unit may not may have access to. Check the current rules for your tax year, as the credit structure has changed.
Installation must be done by a licensed contractor in most cases. Some states or utility companies offer additional rebates on top of the federal credit, so research local programs before you buy.
Furnaces, Boilers, and Central Air Conditioners
A may have access to furnace or boiler must meet specific Annual Fuel Utilization Efficiency (AFUE) ratings set by the Department of Energy. Not all high-efficiency models meet the threshold — you need to check the exact AFUE percentage for the model you are considering. Central air conditioners must meet Seasonal Energy Efficiency Ratio (SEER) standards.
The credit for these appliances is lower than for heat pumps, typically a few hundred dollars. You can claim the credit only once per appliance type per home, and only if you are replacing an existing system or installing one for the first time.
These appliances must be installed by a licensed contractor. The contractor should provide documentation of the installation and the equipment's efficiency rating, which you will need for your tax return.
Insulation, Windows, Doors, and Roofing Materials
The energy tax credit also covers building materials that reduce the energy your heating and cooling systems must provide. Insulation, weather stripping, caulk, doors, windows, skylights, and certain roofing materials all may have access to if they meet Department of Energy standards.
For insulation, the R-value (thermal resistance rating) must meet or exceed the standard for your climate zone. For windows and doors, the U-factor and Solar Heat Gain Coefficient (SHGC) must fall within the required range. Roofing materials must have a solar reflectance value above a certain threshold.
These materials are often less expensive than appliances, but the credit amounts are also smaller. You can claim multiple types of materials in the same year, and the credits can add up if you are doing a larger home improvement project.
Income Limits and Credit Caps
The energy tax credit has income limits that vary by year and appliance type. If your modified adjusted gross income exceeds the limit, you may not be able to claim the full credit or any credit at all. The income thresholds are higher for joint filers than for single filers.
Some appliances have a per-unit cap — for example, you can claim the credit for only one heat pump per home. Others have a lifetime limit, meaning you can claim the credit only once for that type of equipment over your lifetime. A few appliances have an annual spending cap, so if you install multiple units in one year, the total credit is capped.
The specific limits depend on which appliance you are installing and what year you install it. The rules have changed multiple times in recent years, so check the current IRS guidance or a tax professional before you make your purchase.
What Documentation You Need to Keep
Save the receipt or invoice showing the date of purchase and the total cost. Keep the product documentation that shows the model number, serial number, and efficiency rating (AFUE, SEER, R-value, U-factor, or whatever metric applies). If the appliance came with a certification label or the manufacturer provided a letter stating it meets Department of Energy standards, keep that too.
For appliances installed by a contractor, ask for an itemized invoice that lists the equipment installed, the date of installation, and the contractor's license number. The contractor may also provide a certification form stating the equipment meets the required standards.
You do not need to send these documents with your tax return, but the IRS can request them if your return is audited. Having them organized and straightforward to find will make the process much faster if that happens.
Frequently Asked Questions
Does my old air conditioner may have access to if I replace it with a new one?
Only the new air conditioner qualifies, not the old one. The new unit must meet the current Department of Energy SEER standard for your climate zone. The credit is for the new equipment you install, not for removing the old equipment.
Can I claim the credit for a heat pump I installed last year?
Yes, you claim the credit in the tax year you install the equipment. If you installed it in 2023, you claim it on your 2023 tax return. If you installed it in 2024, you claim it on your 2024 return. You cannot go back and amend a prior return to add a credit you did not claim.
What if I buy an appliance but do not install it until the next year?
The credit is based on the year of installation, not purchase. If you buy a heat pump in December 2024 but do not install it until January 2025, you claim the credit on your 2025 tax return. Keep the receipt and installation documentation to show when the work was completed.
Do I have to use a licensed contractor, or can I install the appliance myself?
For most appliances, a licensed contractor must do the installation. For some materials like insulation or weatherstripping, you may be able to do the work yourself and still claim the credit, but the rules vary. Check the Department of Energy guidance for the specific appliance before you start the work.
Can I claim the credit if I rent my home?
No, the credit is only for owner-occupied homes. Renters cannot claim the energy tax credit for appliances or materials installed in a rental property, even if they paid for the installation themselves.