Installation costs ARE COVERED for:
- HVAC (Heating, Ventilation and Air Conditioning) systems
- Biomass Stoves
- Water Heaters (including solar)
- Solar Panels
- Geothermal Heat Pumps
- Wind Energy Systems
- Fuel Cells
The tax credit for HVAC, biomass stoves, and non-solar water heaters is 30% of the total cost (product + installation) up to $1,500. The law specifies installation costs include: “expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property.”
The tax credit for solar water heaters, solar panels, geothermal heat pumps, wind energy systems, and fuel cells* is 30% of the total cost (product + installation), with no upper limit. The law specifies installation costs include: “labor costs properly allocable to the onsite preparation, assembly, or original installation of the property and for piping or wiring to interconnect such property to the home.”
Installation costs are NOT covered by the tax credit for:
The tax credit for windows, doors, insulation and roofs is for 30% of the cost of materials only, up to $1,500. Read this FAQ on separating out the cost of installation for these products.
Learn more at: energystar.gov/taxcredits
*The tax credit for fuel cells is 30% of the cost, but limited to $500 per .5 kW of power capacity.