Do you have old appliances or an inefficient house? You can save money on your monthly energy bills and do your part for the environment by upgrading major areas of your home. Thanks to the Nonbusiness Energy Property Credit and the Residential Energy Efficiency Tax Credit, you may be entitled to get back some of the money you spend on these improvements when you file your tax return. Just remember to keep your receipts!

To claim these tax credits, upgrades must be completed by December 31, 2016 and Form 5695 must be completed and included with your 2016 tax return. If you’ve already made improvements, some of the credits may be retroactive for purchases or upgrades you made in 2015.

To qualify for the energy efficiency credits, the energy rating (SEER, EER, HSPF, AFUE or COP) of each product must meet or exceed certain standards. You can find these ratings in your owner’s manual or by checking with your installer. Most categories require a manufacturer’s certificate that you must include with your return.

Check out all the options below to plan your home improvements for the rest of the year:

Item Credit Amount What is the credit for? Energy Requirements
 Biomass Stoves  $300  A stove used for heat or water heating that uses any plant-derived fuel  that is available on a renewable or recurring basis.  The thermal efficiency rating  must be at least 75%.
 Air Source Heat Pumps  $300  ENERGY STAR heat pumps installed in your principal  residence.

Secondary residences and new construction do not  qualify.

 Split Systems:

HSPF >= 8.5, EER >= 12.5, SEER >= 15

Package systems:

HSPF >= 8, EER >= 12, SEER  >= 14

 Central Air Conditioning  $300  Air conditioners recognized as “ENERGY STAR Most Efficient  2016”.

You must get a manufacturer tax credit certificate to apply.

 Split Systems:

SEER>= 16, EER >= 13

Package systems:

SEER >= 14, EER >= 12

 Gas, Propane or Oil  Furnaces and Fans  $150 for furnace,  $50 for fan  Energy star certified furnace installed in your principal  residence. Secondary residences and new construction do not  qualify.

You must get a manufacturer tax credit certificate to apply.

 Furnace:

AFUE > or = 95

 Fan:

Annual electricity use < or =  2%  of total furnace energy

 Insulation  10% of product  cost up to $500  Any insulation products whose primary purpose is insulation.  This  includes bulk insulation products such as batts, rolls,  blow-in fibers, rigid boards, expanding spray and pour-in-place.

Also, products that air seal (reduce air leaks) can also qualify,  including  weather stripping, spray foam in a can, caulk  designed to air seal, and house wrap.

All products require a Manufacturer’s Certification Statement.

 Roofs  10% of product  cost up to $500  ENERGY STAR certified metal and asphalt roofs with  pigmented coatings or cooling granules designed to reduce  heat gain.

You must have a tax credit certificate from the manufacturer  to apply. New construction and rentals do not qualify.

 Water heaters (non-solar)  $300  ENERGY STAR certified electric heat pump or gas, oil or  propane water heaters. Must have an Energy Factor at least  2.0. New construction and rentals do not qualify.
 Windows and Skylights  10% of  product  cost up to $200  Must be ENERGY STAR certified and installed in principal residence.
 Doors  10% of  product  cost up to $500  Must be ENERGY STAR certified and installed in principal residence.
 GeoThermal Heat Pumps  30% of cost (no  upper limit)  Must meet the requirements of the ENERGY STAR program  which are  in effect at the time of the expenditure.

Tax credits include installation  costs.

Existing homes and new construction qualify.

 Water-to-Air Closed Loop:

EER>=17.1, COP>=3.6

 Water-to-Water Open Loop:

EER >= 21.1, COP >= 4.1

 Water-to-Water Closed Loop:

EER>=16.1, COP>=3.1

 Water-to-Water Open Loop:

EER >= 20.1, COP >= 3.5

 Direct Expansion

EER >= 16, COP >= 3.6

 Small Wind Turbines  30% of cost (no  upper limit)  Wind turbines must have a nameplate capacity of no more  than 100  kilowatts. Must be installed in a home you own and occupy. Existing homes and new construction qualify. Rentals and secondary homes do not qualify.
 Solar Water Heaters  30% of cost (no  upper limit)  Existing homes and new construction qualify. At least half of the  energy generated by the solar water heater (“qualifying property”)  must  come from the sun. The water must be used in the dwelling. The credit is not  available for  expenses for swimming pools or hot tubs.  The system must be certified by  the Solar Rating and Certification  Corporation (SRCC).
 Solar Panels  (Photovoltaic Systems)  30% of cost (no  upper limit)  Photovoltaic systems must provide electricity for the residence,  and must meet applicable fire and electrical code requirement.