Equipment Tax Credits for Primary Residences

Disclaimer: The tax credit information contained found on this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS).

Heat pumps that are ENERGY STAR certified meet the requirements for this tax credit.

Tax Credit Amount:  $300

Requirements
Split Systems:
HSPF >= 8.5
EER >= 12.5
SEER >= 15

Package systems:
HSPF >= 8
EER >= 12
SEER >= 14

Air conditioners recognized as ENERGY STAR Most Efficient meet the requirements for this tax credit.   To verify tax credit eligibility, ask your HVAC contractor to provide the Manufacturer Certification Statement for the equipment you plan to purchase.

Tax  Credit Amount:  $300

Requirements
Split Systems:

SEER>= 16
EER >= 13

Package systems:
SEER >= 14
EER >= 12

Gas powered boilers that are recognized as ENERGY STAR Most Efficient meet the requirements of this tax credit.

Tax Credit Amount:  $150

Requirements
AFUE >= 95

Tax Credit includes installation costs.

Gas, Oil, Propane Water Heater

Certain ENERGY STAR certified gas water heaters meet the requirements for this tax credit. Water heaters account for 12% of the energy consumed in your home.

Tax Credit Amount:  $300

Requirements
Uniform Energy Factor (UEF) >= 0.82 OR a thermal efficiency of at least 90%.

Electric Heat Pump Water Heater

Most ENERGY STAR certified water heaters meet the requirements of this tax credit. Water heaters account for 12% of the energy consumed in your home.

Tax Credit Amount:  $300

Requirements
Uniform Energy Factor (UEF) >= 2.2

An Advanced Main Air Circulating Fan is an efficient fan, or blower motor which blows the air that your furnace heats up through the duct system.

Tax Credit Amount:  $50

Requirements
Must use no more than 2% of the furnace’s total energy.

Biomass stoves burn biomass fuel to heat a home or heat water. Biomass fuel includes agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including acquating plants), grasses, residues, and fibers.

Tax Credit Amount:  $300

**Please note: This tax credit may still be claimed on your 2020 tax return for qualifying purchases and installations completed before December 31, 2020.

Effective January 1, 2021, these systems will qualify as a Renewable Energy Tax Credit.

Beginning in 2021, if you purchase and install a wood or pellet stove or larger residential biomass heating system with a Thermal Efficiency Rating of at least 75%, you will be able to claim a 26% tax credit that is uncapped and based on the full cost (purchase and installation) of the unit. The credit will remain at 26% throughout 2021 and 2022, and reduce to 22% in 2023.

The credit must be claimed on the tax return for the year the product installation is completed. Therefore, any product purchased in 2020 that qualifies for the new credit, but is not installed until 2021, should be claimed under the new credit on your 2021 tax return.

Requirements:
Thermal efficiency rating of at least 75%

energy star logoResidential Renewable Energy Tax Credit

In 2015, the U.S. government renewed the 25C tax credit for Solar Energy Systems installed between 2012-2019. This credit is offered as part of a larger energy-efficiency incentive for home improvements.
The residential renewable energy tax credit incentive provides up 30% on the cost and installation of most of the solar assisted comfort systems available at Charlotte Comfort Systems. The current incentives for installing solar plus the long term savings you’ll receive is well worth considering a solar assisted comfort system for your next home comfort purchase.

**UPDATE 08/18/2022** As part of the Inflation Reduction Act of 2022 signed into law on August 16, 2022, residential energy efficiency tax credits have been extended through 2032. This information applies to the existing tax credits for 2022. Changes to residential energy efficiency tax credits under the Inflation Reduction Act will become effective starting in 2023.
If you’d like to know more about the Federal Renewable Energy tax credit, visit- EnergyStar.gov

Expires: 12/31/2032


Duke EnergySmart $aver® Eligibility

Who Is Eligible for Rebates?
Incentives are paid for qualifying heat pumps or air conditioners installed on or after June 1, 2009 for Duke Energy Carolinas electric residential retail customers residing in a single-family home, condominium, duplex or mobile home. Incentives are paid after the qualified system is installed and operating.
If you have additional questions about the Smart $aver program, please call 1-866-785-6209
Smart $aver® Incentive Application PDF (129 KB)


Piedmont Natural GasPiedmont Natural Gas Appliance Rebates

Did you know?

  • Water heating accounts for approximately 15 percent of a home’s energy use
  • A new high-efficiency furnace and cooling system can save you up to $1,200 per year in operating costs

Now is the time to cut the cost of heating water and your home by replacing your old inefficient water heater or furnace with a new high-efficiency one. Residential customers in North Carolina who replace existing natural gas equipment with qualifying high-efficiency natural gas equipment are eligible for up to a $300 rebate and may qualify for federal tax credits as well. This includes the following qualifying high-efficiency gas water heaters and furnaces.
Piedmont Natural Gas Rebate Application PDF (104 KB)

Qualified Energy Efficiency Improvements

Please note: Tax credit DOES NOT INCLUDE INSTALLATION FOR THE FOLLOWING PRODUCTS.

Adding adequate insulation is one of the most cost-effective home improvements that you can do.

Tax Credit Amount:  10% of the cost, up to $500 (NOT INCLUDING INSTALLATION)

Requirements
Typical bulk insulation products can qualify, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place.

Products that air seal (reduce air leaks) can also qualify, as long as they come with a Manufacturers Certification Statement, including:

  • Weather stripping
  • Spray foam in a can, designed to air seal
  • Caulk designed to air seal
  • House wrap

NOTE: Tax Credit does NOT include installation costs.

This tax credit is for ENERGY STAR certified metal and asphalt roofs with pigmented coatings or cooling granules designed to reduce heat gain. Certified roof products reflect more of the sun’s rays, which can lower roof surface temperature by up to 100F, decreasing the amount of heat transferred into your home.

Tax Credit Amount:  10% of the cost, up to $500 (NOT INCLUDING INSTALLATION)

Requirements
“Metal roofs with appropriate pigmented coatings”
 and “asphalt roofs with appropriate cooling granules” that also meet ENERGY STAR requirements.

NOTE: Tax Credit does NOT include installation costs.

Windows, doors and skylights that earn the ENERGY STAR save energy, improve comfort and help protect the environment.

Tax Credit Amount: 10% of the cost, up to $500, but windows are capped at $200. (NOT INCLUDING INSTALLATION)

Requirements
Must be ENERGY STAR certified.

You do not have to replace all the windows/doors/skylights in your home to qualify.  And it doesn’t need to be a replacement either – installing a new window where there wasn’t one previously (like in an addition) qualifies.

Tax credit does not include installation costs.

HVAC Tax Credit Inquiries

Please use the form below if you have any questions regarding current tax credits. For more details on Federal & State HVAC Tax Credits please visit energystar.gov, dsire.org, or dukeenergy.com.

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