Federal Tax Credits for NJ Homeowners
Many federal tax credits for home energy efficiency have been renewed. These tax credits are available for purchases made in 2016 and are also retroactive to purchases made in 2015.
If you install a new HVAC system or water heater by December 31, 2016, you may be eligible for a tax credit—10% of the cost up to $500 or a specific amount from $50 – $300. It must be a retrofit/replacement project—new construction jobs do not apply.
HVAC Tax Credits
The HVAC systems for this federal tax credit include:
- Air-source heat pumps
- Central air conditioners
- Gas, propane, or oil boilers
- Gas, propane, or oil furnaces
Water Heater Tax Credit
This $300 tax credit only applies to non-solar water heaters for electric heat pumps. It can be a gas, oil, or propane system.