Tax Credits There are significant “Renewable Energy Tax Credits” for 30% of the costs of major energy installations. These credits are unlimited, and include labor on installation for the following: Solar Water Heaters Solar Panels Geothermal Heat Pumps Small Wind Turbines Fuel Cells The 30% credits decline through 2021, and are as follows: 2017: 30% 2018: 30% 2019: 30% 2020: 26% 2021: 22% The installations must be installed in a home you own and use as a residence (no rentals, but second homes qualify). Federal tax credits available for high efficient furnace and air conditioners: Tax Credit: 10% of cost up to $500 or a specific amount from $50-$300. Expires: December 31, 2020 Details: Must be an existing home & your principal residence. New construction and rentals do not apply.