Federal Tax Credits
Taking advantage of the innovation and energy efficiency of a Lennox® System may also mean that you can take advantage of energy-efficiency tax credits.
Federal Solar Tax Credit – Available through 2021
The U.S. government offers a Solar Tax Credit, 25D, for homeowners who purchase and install equipment that uses solar energy to generate electricity.
What it covers
- Up to 9% of the total retail cost* of the Solar-Ready Heat Pump or Air Conditioner that’s at the heart of the SunSource® Home Energy System, when solar modules are applied.
- 30% of the cost with no upper limit on solar module installation**
Qualification details
- Existing homes and new construction qualify
- Both principal residences and second homes qualify
- Rentals do not qualify
Federal HVAC Tax Credit – Available for equipment purchased and installed in 2012 - 2016
In 2015, the U.S. government renewed the 25C tax credit for high-efficiency heating and cooling equipment. This credit is offered as part of a larger energy-efficiency incentive for home improvements.
What it covers
- Up to 10% of the cost to $500, or a specific amount from $50 to $300
- $300 maximum credit available for qualifying central Air Conditioners, Heat Pumps, Packaged Units and Ductless Mini-Split Systems
- $150 maximum credit available for qualifying Furnaces and Boilers
Qualification details
- Equipment must be installed in an existing home and your principal residence; rentals or new construction do not qualify
- If you claimed $500 or more for enhancements to your home’s exterior (windows, doors, skylights, insulation, roofing, etc.) from 2006 to 2014, your HVAC purchase made in 2012-2016 will be ineligible
- If you claimed $500 or less, you may qualify for a credit, but you may not get the full dollar amount specified
Federal Energy Efficiency Tax Credit – 2017 Status
As most of you are aware, the federal tax credit for high-efficiency HVAC products ended on December 31, 2016, while solar tax credits are extended through 2021.
Many of you inquired about the possibility of an extension of tax credits for 2017. As the new Administration and Congress reviews tax policy, there is a chance these credits will either be extended, modified or eliminated. Lennox cannot speculate on the likelihood of an extension, modification or elimination, but our Government Affairs Department continuously monitors tax related legislation and will communicate any additional information as it becomes available.
In the meantime, the best source for U.S. tax credits is https://www.energystar.gov/about/federal_tax_credits.
Information about local energy tax credits
You may be eligible for additional tax credits or rebates in your region. Contact your local utilities company to find out, or visit dsireusa.org to search the DSIRE Database of State Incentives for Renewables and Efficiency®.
