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The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (as extended by the Protecting Americans from Tax Hikes Act of 2015) provides for federal tax credits on qualifying, high-efficiency residential heating and cooling products and systems (HVAC) through December 31, 2016

This program is an extension of the federal tax credits that were in effect during 2009, 2010, and 2011.

The maximum amount an eligible homeowner may receive in federal tax credits for purchasing and installing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, is now 10% of the cost of the improvement, including installation costs, up to $500 (with maximum per-category amounts listed below).

The $500 tax credit amount is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2016. If a residential homeowner has already claimed single-family home tax credits of $500 or more from improvements made prior to 2016, he or she cannot claim any new tax credits during 2016.

All furnaces and boilers, whether fueled by natural gas, propane or fuel oil, must have an AFUE rating of 95% or higher to be eligible.

Products or units must be installed between January 1, 2009, and December 31, 2016, to be eligible for tax credits.

Tax Credit
Product TypeEfficiency Requirements
$50Any Advanced Main  Air Circulating FanElectricity consumption of no more than 2% of the total energy use of the furnace
Tax Certificate
$150Natural Gas, Propane, Oil Furnaces or Boilers95% AFUE rating Tax Certificate
$300Split-System Air Conditioners16 SEER / 13 EER Tax Certificate
$300Split-System Heat Pumps15 SEER / 12.5 EER / 8.5 HSPF Tax Certificate
$300Packaged Air Conditioners14 SEER / 12 EER Tax Certificate
$300Packaged Heat Pumps14 SEER / 12 EER / 8 HSPF Tax Certificate
$300Packaged Gas/Electric Units
14 SEER / 12 EER  Tax Certificate
$300Ductless- Air Conditioners
16 SEER / 13 EER  Tax Certificate
$300Ductless- Heat Pumps
15 SEER / 12.5 EER / 8.5 HSPF  Tax Certificate

This information is provided for discussion purposes only and is provided as a generic guideline. No consideration should be taken that this information represents tax advice. Contact your local tax professional to determine how these credits may apply to your circumstances and visit for more information.