Appliances that may have access to for the 2024 energy tax credit

The federal energy tax credit covers specific appliances that meet Department of Energy efficiency standards. The list includes heat pump water heaters, heat pump clothes dryers, electric stoves and cooktops, induction cooktops, heat pumps for space heating and cooling, and certain central air conditioners and furnaces. You can claim up to $3,200 total across all appliances in a single tax year, with some individual appliances capped at lower amounts.

Not every appliance in these categories qualifies — the manufacturer must certify that the model meets the required efficiency level. You'll need the model number and serial number when you file, so keep your receipt and any documentation the retailer provides. The credit applies to appliances you install in your primary residence, not rental properties or second homes.

The credit is nonrefundable, meaning it reduces your tax bill but won't generate a refund if it exceeds what you owe. If you don't owe enough tax to use the full credit in one year, you cannot carry the unused portion forward to future years.

Key Takeaways

  • Heat pump water heaters, heat pump clothes dryers, induction cooktops, and certain heat pumps and air conditioners may have access to, but only models certified by the manufacturer as meeting Department of Energy standards.
  • The total credit across all appliances is capped at $3,200 per tax year, with individual appliances subject to lower limits (for example, $2,000 for a heat pump water heater).
  • You must install the appliance in your primary residence and keep the receipt and model documentation to claim the credit on your tax return.
  • The credit is nonrefundable, so it can only reduce your tax bill to zero — any unused portion does not carry forward.

Heat pump water heaters and clothes dryers

Heat pump water heaters and heat pump clothes dryers each carry a $2,000 credit limit. The water heater must have an energy factor of at least 2.0, and the clothes dryer must meet the ENERGY STAR Most Efficient specification. Both must be installed in your home during the tax year you claim the credit.

These appliances are among the most expensive to replace, so the credit can offset a meaningful portion of the cost. However, you cannot claim the credit for a water heater or dryer that was already installed before you purchased it — the credit applies only to new installations you make yourself.

Induction and electric cooktops and ranges

Induction cooktops and electric stoves may have access to for a $840 credit each. A standalone induction cooktop and a full electric range are treated as separate appliances, so you could theoretically claim both if you install both. The appliance must be new and installed in your primary residence.

Gas stoves and cooktops do not may have access to. If you're replacing a gas range with an electric one, you'll need to verify the model number meets the Department of Energy standard — not all electric ranges do, so check the manufacturer's certification before purchase.

Heat pumps and air conditioning systems

Central air conditioners and heat pumps for space heating and cooling carry a $2,000 credit limit each. The system must meet specific SEER2 (Seasonal Energy Efficiency Ratio) and HSPF2 (Heating Seasonal Performance Factor) thresholds set by the Department of Energy. These thresholds change year to year, so a unit that may have access to in 2023 may not may have access to in 2024.

Installation by a licensed contractor is typically required for the credit to explore, though some states have different rules. Keep the contractor's invoice and the equipment documentation showing the model number and efficiency ratings. If you're replacing an existing system, the credit applies to the new installation, not the removal of the old one.

Central furnaces and boilers

Certain natural gas, propane, and oil furnaces may have access to for a $600 credit, and may have access to boilers also may have access to for $600. The furnace must have an Annual Fuel Utilization Efficiency (AFUE) rating of at least 95%, and the boiler must meet specific efficiency standards. Electric furnaces and heat pumps are not may be able to access under this category (they fall under the heat pump section instead).

Like air conditioning systems, furnace and boiler installation typically requires a licensed contractor. The credit applies only to the new equipment, not to labor or ductwork modifications. If you're unsure whether your model qualifies, ask the contractor to provide the efficiency rating before installation.

How to claim the credit on your tax return

You claim the energy tax credit on Form 5695, Residential Energy Credits, which you file with your Form 1040. You'll need the model number, serial number, and the year of installation for each appliance. The manufacturer's certification that the appliance meets the standard is not required to be attached to your return, but you should keep it with your records in case of an audit.

The credit is claimed in the year the appliance is installed, not the year you purchase it. If you buy an appliance in December but don't install it until January of the following year, you claim the credit on next year's return. Installation means the appliance is in place and operational, not merely purchased or delivered.

If you're working with a tax professional, provide them with the receipts and any documentation from the retailer or manufacturer showing the model number and efficiency certification. If you're filing on your own, double-check the Department of Energy's list of may have access to models before you file to avoid claiming a credit for an ineligible appliance.

The $3,200 annual cap and how it works

The total credit you can claim across all appliances in a single tax year is $3,200. If you install multiple appliances in the same year, the credits stack until you reach $3,200. For example, if you install a heat pump water heater ($2,000 credit) and an induction cooktop ($840 credit), your total would be $2,840, leaving $360 of unused credit capacity for that year.

Any credit amount you don't use in a given year does not roll forward to future years. This means if you install a $2,000 heat pump water heater and your tax bill is only $1,500, you lose the $500 difference. Plan your appliance purchases accordingly if you know your tax liability will be low in a particular year.

Frequently Asked Questions

Do I have to install the appliance myself, or can a contractor do it?

For most appliances, a contractor can install them and you still claim the credit. For furnaces, boilers, and air conditioning systems, a licensed contractor is typically required. For water heaters, cooktops, and clothes dryers, you can install them yourself or hire someone, as long as the appliance is new and installed in your primary residence during the tax year you claim the credit.

Can I claim the credit for an appliance I bought last year but installed this year?

Yes. The credit is based on the year of installation, not purchase. If you bought an appliance in 2023 but installed it in 2024, you claim the credit on your 2024 tax return. Keep your receipt showing the purchase date and your documentation showing the installation date.

What if the appliance model number isn't on my receipt?

Contact the retailer or manufacturer with your receipt and ask for the model and serial number. You can also check the appliance itself — the model number is usually on a label inside or on the back. Keep this information with your tax records. If you cannot locate it before filing, you may need to file an amended return once you find it.

Can I claim the credit for a rental property or vacation home?

No. The credit applies only to appliances installed in your primary residence. Rental properties, second homes, and vacation homes do not may have access to, even if you live in them part of the year.

What happens if I claim the credit but the appliance doesn't actually may have access to?

If the IRS audits your return and finds that the appliance didn't meet the Department of Energy standard, you'll owe back taxes on the credit amount plus interest and potentially penalties. Before you file, verify the model number against the Department of Energy's list of may have access to appliances for the year you're claiming the credit.