2017 Tax Credits for Energy Efficiency

Are there any tax rebates available for home energy efficiency?

Most of the residential energy efficiency tax credits expired on December 31, 2016 but were retroactively restored for the 2017 in the Bipartisan Budget Act signed February of 2018. You can also retroactively claim any outstanding rebates (CLICK HERE for more information). The 2017 Non-business Energy Property Tax Credits provides homeowners a rebate of 10% of the cost of energy efficiency products up to $500, or a specific amount from $50-$300. This applies to a primary existing residence only (rental properties and new construction do not qualify). Below is a list of qualifying products:

  • Air Source Heat Pumps
  • Central Air Conditioning
  • Gas, Propane, or Oil Hot Water Boiler
  • Gas, Propane, or Oil Furnaces and Fans
  • Water Heaters (non-solar)
  • Advanced Main Air Circulating Fans
  • Biomass stoves
  • Insulation and Air Sealing Products
  • Roofs
  • Windows, Doors, and Skylights (including sun tubes)

CLICK HERE for more information on specific qualification requirements and rebate amounts

The Bipartisan Budget Act also reinstated the tax credit for fuel cells, small wind, and geothermal heat pumps. The tax credit for these technologies now includes a gradual step-down in credit value. Geothermal can receive a 30% credit for systems placed in service by 12/31/2019. The same is true for solar electric and solar water heating (CLICK HERE for more information).


Are there any tax credits available for Builders?

Yes! The Bipartisan Budget Act of 2018 also retroactively extended the 45L Energy Efficient Housing Credit for builders. This credit provides builders up to $2,000 for selling or leasing an energy efficient home. It was previously set with a deadline of December 31st, 2016 but has been extended to December 31st, 2017.

Builders can receive this credit if: (1) the house is located in the United States, (2) its construction is substantially completed before December 31, 2017, (3) it meets the energy saving requirements outlined in the statute, and (4) it is acquired from the eligible contractor after December 31, 2013, and before January 1, 2018, for use as a residence. CLICK HERE for Tax Form 8908.