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:  30% of project cost. Maximum amount credited: $2,000

For heat pumps, ENERGY STAR offers a general certification and a cold climate certification. In general, all ducted heat pumps that have earned the ENERGY STAR label are eligible, as well as certified mini-split systems (non-ducted) with SEER2 > 16, EER2 > 12 and HSPF > 9. Among the models that earn the ENERGY STAR Cold Climate designation, ducted systems with EER2 > 10 are eligible, and mini-splits with SEER2 > 16, EER2 > 9, and HSPF > 9.5 are eligible.


Tax  Credit Amount:  30% of project cost. Maximum of $600.

For split systems, ENERGY STAR certified equipment with SEER2 > 16 is eligible.  All ENERGY STAR certified packaged systems are eligible.


Tax Credit Amount:  30% of project cost. Maximum $600.


Gas Boilers

ENERGY STAR certified gas boilers with AFUE > 95% are eligible.

Oil Boilers

ENERGY STAR certified oil boilers that use certain fuels are eligible.  The equipment must be rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of biodiesel, renewable diesel or second-generation biofuel.


Gas, Oil, Propane Water Heater

Tax Credit Amount:  30% of project cost. $600 maximum.

All ENERGY STAR certified gas water heaters are eligible.


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

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:  30% of project total cost. $2,000 maximum credit.


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.

Must have a thermal efficiency rating of at least 75% (measured by the higher heating value of the fuel).

energy star logoHigh Efficiency Electric Home Rebate Program (HEEHRP)

The High Efficiency Electric Home Rebate Program will enable states to provide up to $14,000 in direct consumer rebates for families to buy heat pumps or other energy-efficient home appliances, saving eligible families at least $350 a year on utility bills.

HEEHRP provides HVAC rebates up to $14,000 per household, including:

  • Up to $8,000 Heat Pump installation rebate for energy star equipment
  • Up to $4,000 electrical panel upgrade rebate
  • Up to $1,600 home insulation & sealing rebate
  • Up to $2,500 home electrical wiring improvements

Eligibility and the amount of the rebate depends on household income:

  • For households below 80% of area median income, 100% of the system purchase price qualifies for the rebate.
  • For households that fall within 80% to 150% of area median income, 50% of the system purchase price qualifies for the rebate.
  • Households above 150% of area median income do not qualify for the HEEHRP rebate.

Expires: 12/31/2032

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.

tax credit 25c ira deductions**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.

The previous Nonbusiness Energy Property credit (25C) for installing high-efficiency equipment was extended through 2022 and provides federal tax credits of up to $500.

The amended Energy Efficient Home Improvement Credit (25C) begins in 2023 and extends the offering through 2032. It increases the tax credit limits for high-efficiency equipment as follows:

  • Up to $600 each for a qualified air conditioner or gas furnace, with an annual cap of $1,200
  • Up to $2,000 with a qualified heat pump, heat pump water heater, or boiler.

If you’d like to know more about the Federal Renewable Energy tax credit, visit-

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


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

Tax Credit Amount:  30% of the cost, up to $1200 (NOT INCLUDING INSTALLATION)


What products are eligible?
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)

“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)

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

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