If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit.
Below you will find an overview of the federal tax credits for energy efficiency that are still available.
Some energy efficiency tax credits were also available in 2009 and 2010. These can still be claimed on your 2010 taxes. Learn more about the tax credits that expired at the end of 2010.
NOTE: The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included changes to home energy efficiency tax credits, beginning after December 31, 2010. This page will be updated with more information; please check back.
How to Claim Your Tax Credit
- Note: Tax forms for the 2010 tax year may not yet be available. Visit the IRS Web site to obtain the latest forms.
- Claim improvements made in 2010 on your 2010 taxes, filed by April 15, 2011.
- Use the 2010 version of the following forms:
- For renewable and efficiency credits: IRS Form 5695.
- For alternative motor vehicle credits: IRS Form 8910. Also download instructions for form 8910.
- For qualified plug-in electric drive motor vehicle credits: IRS Form 8936
- Save your receipts and the Manufacturer Certification Statement for your records.
- For 2009 taxes, visit the IRS Web site to obtain the 2009 version of these forms.
Products Eligible for Tax Credits Through 2016
Tax credits for these products are available at 30% of the cost, with no upper limit, through 2016 (Select "See Details" for more information on each product, or see the printable version).Geothermal Heat Pump
Credit: Bruce Green
Credit: 30% of cost, with no upper limit
When and Where:
- Must be "placed in service" by Dec. 31, 2016
- Available on principal home or second home.
- New and existing homes
Solar Energy Systems
Credit: Cheryl Unger
Credit: 30% of cost, with no upper limit
When and Where:
- Must be "placed in service" by Dec. 31, 2016
- Available on principal home or second home.
- New and existing homes
Wind Energy Systems
Credit: Bergey WindPower
Credit: 30% of cost, with no upper limit
When and Where:
- Must be "placed in service" by Dec. 31, 2016
- Available on principal home or second home.
- New and existing homes
Fuel Cells
Credit: Capstone Turbine Corporation
Credit: 30% of cost, up to $500 per .5 kW of power capacity
When and Where:
- Must be "placed in service" by Dec. 31, 2016
- Primary residence
- New and existing homes
Vehicle Tax Credits
Tax credits are also available for some vehicles (Select "See Details" for more information on each product, or see the printable version).Vehicles
Credit: ©iStockphoto.com
Credit: Varies, see below.
When:
- See below; credits phased-out after certain number of vehicles are sold.
See details
Product Requirements More Information Hybrids, battery-powered, plug-in electric, advanced lean burn, fuel cell, or alternative fuel vehicles Credit is based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models. There is a 60,000 vehicle limit per manufacturer before a phase-out period begins. See Fueleconomy.gov to find out which vehicles are still eligible.
Use IRS Form 8910 (PDF 86 KB) for vehicles purchased for personal use. Use IRS Form 3800 (PDF 144 KB
Also see credits for alternative fuel vehicle refueling property.Plug-in Electric Vehicles Credit: $2,500-$7,500, based on capacity of the battery system. The first 200,000 vehicles sold get the full tax credit before the credit begins phasing out. Use IRS Form 8936 (PDF 78 KB
See the IRS information on the Plug-in Electric Vehicle Credit.
You May Be Eligible for Additional Incentives
The tax credits listed here are federal tax credits.These can be combined with other state, local, and utility incentives.
- Visit the Database of State Incentives for Renewables and Efficiency to find out if you are eligible for other incentives.
- If you are purchasing appliances, learn about the state rebates for ENERGY STAR appliances.
Related Links
- Tax Incentives Assistance Project
- ENERGY STAR Summary of Federal Tax Credits for Energy Efficiency
- IRS Audio Podcast on Home Energy Tax Credits. Download Windows Media Player or iTunes.
- English (MP3 3.1 MB) text version
- Espanol (MP3 3.6 MB) text version
- IRS Notice 2009-53 Interim guidance for Section 25C: Nonbusiness Energy Property
- IRS Notice 2009-41 Interim guidance for Section 25D: Credit for Residential Energy Efficient Property
