Federal tax credits available in 2006-07
Up to $500 in federal tax credits are now available for investments that make your home more energy efficient. You can get a 10 percent credit for the following qualified improvements installed in 2006 or 2007:
- Insulation systems that reduce heat loss/gain
- Exterior windows (including skylights)
- Exterior doors
- Metal roofs (meeting applicable Energy Star requirements)
In addition, tax credits are available:
- $50 for an advanced main air circulating fan
- $300 for qualified heat pumps, water heaters, boilers, furnaces and central air conditioners
The maximum credit for both 2006 and 2007 is $500; no more than $200 of that can be for window costs.
Learn more about federal tax credits on the
Energy Star Web site.
List of qualifying investments
| Product Category |
Product Type |
Tax Credit Specification |
Tax Credit |
| Windows |
Exterior Windows |
Meet 2000 IECC & Amendments |
10% of cost not to exceed $200 total |
| Skylights |
Meet 2000 IECC & Amendments |
10% of cost not to exceed $200 total |
| Exterior Doors |
Meet 2000 IECC & Amendments |
10% of cost not to exceed $500 total |
| Roofing |
Metal Roofs |
Energy Star qualified |
10% of cost not to exceed $500 total |
| Insulation |
Insulation |
Meet 2000 IECC & Amendments |
10% of cost not to exceed $500 total |
| HVAC |
Central AC |
EER 12.5/SEER 15 split Systems
EER 12/SEER 14 package systems |
$300 |
| Air source heat pumps |
HSPF 9 EER 13 SEER 15 |
$300 |
| Geothermal heat pump |
EER 14.1 COP 3.3 closed loop
EER 16.2 COP 3.6 open loop
EER 15 COP 3.5 direct expansion |
$300 |
| Gas, oil, propane water heater |
Energy Factor 0.80 |
$300 |
| Electric heat pump water heater |
Energy Factor 2.0 |
$300 |
| Gas, oil, propane furnace or hot water boiler |
AFUE 95 |
$150 |
| Advanced main air circulating fan |
No more than 2% of furnace total energy use |
$50 |
Solar panels and solar water heating systems
Additionally, you can get a 30 percent credit on a qualified solar panel up to a maximum tax credit of $2,000 and equivalent credit for solar water heating system. No part of either system can be used to heat a pool or hot tub.
