Federal Tax Credits Available for Energy Efficient Equipment

Homeowners who purchase or have recently purchased energy efficient equipment, such as water heaters and air conditioners, are eligible for federal tax credit under the Consolidated Appropriations Act of 2015. This tax credit is available for purchases made in 2016, as well as retroactive for qualifying purchases made in 2015 and it is effective until Dec. 31, 2016.

Geothermal system tax credits and solar water heaters are unaffected by these changes and remain in place through Dec. 31, 2016. 

Help your homeowners save money. Here’s what they need to know:

Qualifying equipment includes:

• High-efficiency water heaters
• Furnaces
• Boilers
• Heat pumps
• Central air conditioners
• Building insulation
• Windows
• Roofs
• Biomass stoves
• Circulating fans in qualifying gas furnaces

Other information to note:

• An eligible homeowner can receive up to $500 in tax credits.
• Tax credits can only be applied to equipment installed in a homeowner’s primary residence, not a second home.
• To apply for these tax benefits, homeowners can download the IRS form here.

Homeowners will look to their local contractor for the correct documentation needed to claim the tax credit. Make sure you have the facts. To learn more about federal energy efficiency tax credits, visit the Air-Conditioning, Heating, & Refrigeration Institute. For a list of qualifying Rheem equipment, click here.

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