Federal Tax Credits

Residential Energy Property Costs

What are Residential Energy Property Costs?

Residential Energy Property Costs are costs of new qualified energy property that is installed on or in connection with your main home located in the United States.


Example of residential energy property costs

Residential energy property costs include:

  • labor costs properly allocable to the onsite preparation

  • assembly

  • original installation of the property


List of qualified energy property

Qualified energy property is any of the following:

  • certain electric heat pump water heaters,

    • electric heat pumps,

    • geothermal heat pumps

    • central air conditioners

    • natural gas, propane, or oil water heaters

  • qualified natural gas, propane, or oil furnaces or hot water boilers

  • Certain advanced main air circulating fans used in natural gas, propane or oil furnaces


To qualify for the credit, qualified energy property must meet certain performance and quality standards.