Federal income tax credits are available to consumers who upgrade certain HVAC components in their homes. Receive 10% of the cost, up to $500, with the exception of the following:
- $300 for central air conditioners
- $300 for electric heat pumps and energy efficient water heaters
- $150 for high efficiency natural-gas, oil, and propane furnaces
- $150 for high efficiency hot water boilers
IRS energy credit tips on video: http://www.youtube.com/watch?v=0_WUOYM8x-k
The IRS Form 5695 is used to claim the credit when you file your taxes. Consult your accountant or tax preparer for additional guidance.