Tax Credits for Home 

Energy Improvements

If you buy an energy-efficient 

product or renewable energy 

system for your home, you 

may be eligible for a federal 

tax credit. This fact sheet 

provides an overview of 

current federal tax credits 

for energy efficiency. 

Several products—from appliances to 

solar electric properties—are currently 

eligible for a federal tax credit. While 

some products bought in 2009 and 

early 2010 are eligible for credit on 

your 2009 return, others will be eligible 

through 2016.

For the most up-to-date information, 

contact a tax professional to apply 

these tax credits appropriately and get 

the maximum credit available. You 

should not rely solely on Web sites or 

printed material. The table on the right 

provides overview information for

most products.

Products Eligible for Tax Credits Through 2010

Product Credit When and Where

• Biomass stoves

• Central air conditioners, electric heat 

pumps, furnaces and boilers, and 

advanced main air circulating fans

• Insulation material or systems

specifically and primarily designed to 

reduce heat loss or gain

• Roofing: Metal and asphalt

• Water heaters (non solar): Electric heat 

pump, natural gas, propane, and oil

• Exterior windows, doors, and skylights; 

qualified storm doors and storm windows

30% of cost, 

up to $1,500

• 2009 and 2010 only

• Existing primary

homes only

Products Eligible for Tax Credits Through 2016

• Geothermal heat pumps

• Solar electric and solar water

heating property

• Wind energy systems

30% of cost, 

with no 

upper limit

• Must be “placed in 

service” by Dec. 31, 2016

• Primary or secondary 

homes only

• New and existing homes

• Residential fuel cell systems

30% of cost, 

up to $500 

per .5 kW 

of power 

capacity

• Must be “placed in 

service” by Dec. 31, 2016

• Primary residence; new 

and existing homes

Additional Tax Credits

• Vehicles: Hybrid gasoline-electric, 

advanced lean-burn, battery-electric, 

alternative fuel, fuel cell, plug-in electric

Credit 

varies by 

vehicle type: 

phased-out 

after certain 

number of 

vehicles

are sold

• Visit fueleconomy.gov

for eligibility

How to Claim Your

Tax Credit

■ Use IRS Tax Form 5695 to claim 

improvements made on your home

■ Use the 2010 version of the following 

IRS Tax Forms for vehicles: 

- IRS Form 8936 for plug-in

electric vehicles

- IRS Form 8910 for other eligible 

vehicles (personal use) 

- IRS Form 3800 for other eligible 

vehicles (business use)

■ Forms for 2010 will be available from 

the IRS in late 2010 or early 2011

■ Save your receipts and the manufacturer certification statement for

your records

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CLEAN CITIES
The credits are nonrefundable—in other 

words, the credits are only available 

to the extent you have a tax liability. 

For 2010, the credits for home energy 

improvement products eligible through 

2010 may be limited if you are subject to 

the AMT.

Products Eligible for Tax 

Credits through 2010

Several products are eligible for tax 

credits at 30% of the cost (some include 

installation), up to a total credit of 

$1,500. These must be “placed in 

service” from January 1, 2009 through 

December 31, 2010. 

The $1,500 maximum limit is for all of 

the efficiency measures combined over 

the two-year 2009-2010 period; you can 

purchase up to $5,000 worth of products 

over the two years and get 30% or 

$1,500 as a tax credit. If you get the 

full $1,500 tax credit in 2009, you are 

not eligible for a tax credit on these 

products in 2010. 

Get More Information

■ Energystar.gov: Provides details 

on eligibility requirements, 

products and limitations

■ Dsireusa.org: Provides information 

on the Database of State Incentives 

for Renewables and Efficiency

■ Fueleconomy.gov: Provides details 

on which vehicles are still eligible 

for the federal tax credit

■ Energytaxincentives.org: The Tax 

Incentives Assistance Project, 

which will help you take advantage 

of the tax credits

■ IRS.gov: Provides all tax forms

and instructions for filling them

out properly

The credits for products subject to 

the $1,500 limit are only available for 

primary existing residences and only 

through 2010. You can receive both 

the tax credits for products capped at 

$1,500 and the tax credits for products 

with no upper limit.

Products Eligible for Tax 

Credits through 2016

Tax credits for some products are 

available at 30% of the cost (including 

labor costs, with no upper limit) 

through 2016. They must be placed 

in service by December 31, 2016.

The flexibility of this tax credit allows 

you to plan in advance to buy highly 

efficient, clean energy sources for both 

primary and secondary homes. New 

and existing construction both qualify.

Fuel Cell Tax Credits

Residential fuel cell systems are

eligible for tax credits at 30% of cost,

up to $500 per .5 of power capacity.

They must be placed in service by 

December 31, 2016. 

Both new and existing home construction both qualify, but only for a 

primary residence. 

Vehicle Tax Credits

Tax credits are also available for some 

vehicles. The requirements for this tax 

credit vary based on the type of vehicle 

and manufacturer limitations. For 

example, only the first 200,000 plug-in 

electric drive vehicles are eligible for 

the full tax credit.

Additional Incentives

In addition to the tax credits featured 

here, you may be eligible to combine 

these with other state, local, utility 

incentives, and rebates.

Visit the Database of State Incentives 

for Renewables and Efficiency at 

dsireusa.org to find out if you are 

eligible for additional incentives.

PIX15615

EERE Information Center

1-877-EERE-INF (1-877-337-3463)

www.eere.energy.gov

www.energysavers.gov/taxcredits

Prepared by the National Renewable Energy Laboratory 

(NREL), a national laboratory of the U.S. Department of 

Energy, Office of Energy Efficiency and Renewable Energy; 

NREL is operated by the Alliance for Sustainable Energy, LLC.

DOE/GO-102010-3072 • May 2010

Printed with a renewable-source ink on paper containing at least 50% wastepaper, including 10% post consumer waste.