Eligibility Requirements

• Energy-efficiency improvements must be made to your primary residence.
• Energy-efficiency improvements must be placed in service after 2005 and before 2008.
• A maximum credit of $500 is for all energy efficiency improvements.
• There are also maximums for:
  • Windows ($200)
  • Furnaces or boilers ($150)
  • Advanced main air circulating fans ($50)
  • Heat pumps ($300)
  • Central air conditioners ($300)
  • Water heaters ($300)
• For insulation, the tax credit is 10 percent of expenditures.
• Building envelope components, i.e. wall, ceiling and basement insulation, must meet prescriptive criteria of the 2000 IECC. The criteria vary by county – you can view the criteria here.
• The maximum credit for qualified solar property is an additional $2,000.

Minimum requirements:

• Electric heat pump water heater: Energy Factor - 2.0
• Electric heat pump: HSPF - 9, SEER - 15, & EER – 13
• Geothermal heat pump, closed loop: EER - 14.1 & COP - 3.3
• Geothermal heat pump, open loop: EER - 16.2 & COP - 3.6
• Geothermal heat pump, direct expansion: EER - 15 & COP - 3.5
• Central air conditioner: highest tier set by Consortium for Energy Efficiency on Jan. 1, 2006
• Natural gas, propane, or oil water heater/space heater: Energy Factor - .80
• Natural gas, propane, or oil furnace or hot water boiler: AFUE – 95
• Advanced main air circulating fan: fan used in a furnace, which has annual electricity use of no more than 2 percent of total furnace energy use

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