U.S. Department of Energy - Energy Efficiency and Renewable Energy

Energy Savers

Tax Credits for Energy Efficiency

If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit. Below is an overview of the federal tax credits for energy efficiency that are currently available.

While some energy efficiency tax credits are available through 2011, others are available through 2016 as noted below. In addition, tax credits were available in 2009 and 2010 which can still be claimed on your 2010 taxes. Learn more about the tax credits that expired at the end of 2010.

How to Claim Your Tax Credit

  • Visit the IRS website to obtain the correct forms for the tax year you are filing.
    • For example, claim improvements made in 2010 on your 2010 taxes, filed by April 18, 2011.
  • Use the following forms:
    • For renewable and efficiency credits: IRS Form 5695.
    • For alternative motor vehicle credits: IRS Form 8910. Also download instructions for form 8910.
    • For qualified plug-in electric drive motor vehicle credits: IRS Form 8936.
  • Save your receipts, or make copies of them, and the Manufacturer Certification Statement for your records.
  • NOTE: The credits are nonrefundable—in other words, the credits are only available to the extent you have a tax liability. The credits for home energy improvement products eligible through 2011 may be limited if you are subject to the AMT.
  • Tax credits can only be claimed once, and are limited to the year in which they are purchased: If you claimed a home energy improvement tax credit on your 2010 taxes, you cannot take an additional credit for the same purchase on your 2011 taxes.
  • There is a $500 lifetime limit on the federal tax credits that expire in December 2011 (not those that expire in 2016). If you have received a total of $500 or more in these tax credits from 2006-2010, you are not eligible for any more.

Products Eligible for Tax Credits Through 2011

These credits are documented in Part I of IRS form 5695 as "Nonbusiness Energy Property Credits."

Biomass Stoves

Photo of wood pellets stored in a wood pellet stove.

Credit: ©iStockphoto.com/JillKyle

Credit: $300

When and Where:

  • 2011 only
  • Existing primary residence

HVAC

Photo of a hand pressing buttons on a programmable thermostat.

Credit: ©iStockphoto.com/Kameleon007

Credit: See details

When and Where:

  • 2011 only
  • Existing primary residence

Insulation

Photo of a man applying weatherstripping to the edge of a door.

Credit: ©iStockphoto.com/DonNichols

Credit: 10% of the cost, up to $500

When and Where:

  • 2011 only
  • Existing primary residence

Roofing

Photo of a man working on a roof.

Credit: ©iStockphoto.com/Ju-Lee

Credit: 10% of cost, up to $500

When and Where:

  • 2011 only
  • Existing primary residence

Water Heaters (non-solar)

Photo of a man working on a water heater.

Credit: ©iStockphoto.com/Andrew_Howe

Credit: $300

When and Where:

  • 2011 only
  • Existing primary residence

Windows, Doors, and Skylights

Photo of two windows on a house.

Credit: ©iStockphoto.com/Skyak

Credit: 10% of the cost, up to $500, but windows are capped at $200

When and Where:

  • 2011 only
  • Existing primary residence

Products Eligible for Tax Credits Through 2016

These credits are documented in Part II of IRS form 5695 as "Residential Energy Efficient Property Credit."

Tax credits for these products are available at 30% of the cost, with no upper limit, through 2016 (Select "See Details" for more information on each product, or see the printable version).

Geothermal Heat Pump

Photo of two geothermal heat pump—two tall rectangular boxes with pipes and tubes coming out the top of each.

Credit: Bruce Green

Credit: 30% of cost, with no upper limit

When and Where:

  • Must be "placed in service" by Dec. 31, 2016
  • Available on principal home or second home.
  • New and existing homes

Solar Energy Systems

Photo of solar panels on the roof of a home.

Credit: Cheryl Unger

Credit: 30% of cost, with no upper limit

When and Where:

  • Must be "placed in service" by Dec. 31, 2016
  • Available on principal home or second home.
  • New and existing homes

Wind Energy Systems

Photo of a home with a small wind turbine behind the garage.

Credit: Bergey WindPower

Credit: 30% of cost, with no upper limit

When and Where:

  • Must be "placed in service" by Dec. 31, 2016
  • Available on principal home or second home.
  • New and existing homes

Fuel Cells

Photo of a man examining one of three fuel cells. The fuel cells are tall boxes, roughly six feet tall and three feet wide, with a round panel on the front.

Credit: Capstone Turbine Corporation

Credit: 30% of cost, up to $500 per .5 kW of power capacity

When and Where:

  • Must be "placed in service" by Dec. 31, 2016
  • Primary residence
  • New and existing homes

Vehicle Tax Credits

Tax credits are also available for some vehicles (Select "See Details" for more information on each product).

Plug-In Electric Vehicles

Photo of a hybrid electric vehicle.

Credit: ©iStockphoto.com

Credit: Varies, see below.

When:

  • See below; credits phased-out after certain number of vehicles are sold.

You May Be Eligible for Additional Incentives

The tax credits listed here are federal tax credits.
These can be combined with other state, local, and utility incentives.

Note: This summary is for informational purposes only and should not be considered official tax information. Please see the IRS web site for official tax guidance.