Energy Sense Image
Federal Tax Credits
 Water Heating Home Heating Federal Tax Credits

There hasn’t been a better time to invest in energy saving equipment for your home because replacing your old equipment with energy efficient equipment can often cost less than standard equipment after all the incentives are factored out of the cost. Beyond Missouri Gas Energy rebates, there are Federal Tax Credits and the state of Missouri Rebates. If you are replacing a furnace, you should also check with your electric utility to see a rebate is offered on an energy efficient air conditioner.

 Federal Tax Credits
 You may be entitled to tax credits by meeting certain qualifications. The passage of the Emergency Economic Stabilization Act of 2008 and the American Recovery and Reinvestment Act of 2009 has brought changes to the energy efficiency tax credits available. A detailed and updated list of these tax credits can be found at ENERGY STAR’s Federal Tax Credits for Energy Efficiency. See matrix below for an overview of natural gas systems. These credits are only established through 2010.
SUMMARY OF FEDERAL TAX CREDITS FOR HOME OWNERS
PRODUCT PRODUCT TYPE SPECIFICATIONS TAX CREDIT
HVAC ¹ Natural Gas Furnace AFUE >= 95 30% of cost,
up to $1500
HVAC ¹ Natural Gas Boiler AFUE >= 90 30% of cost,
up to $1500
Water Heater ² Natural Gas Tankless EF >= 0.82 or a thermal efficiency
of at least 90%		 30% of cost,
up to $1500

Subject to a $1,500 maximum per homeowner for all improvements combined.

 1.) Note that not all HVAC ENERGY STAR products will qualify for the tax credit.
Additional info at Energy Star FAQs home heating... Learn More

2.) Additional info at Energy Star FAQs on water heating... Learn More


 Glossary of Terms
  • AFUE: means Annual Fuel Utilization Efficiency, a measure of a gas furnace's efficiency in converting fuel to energy - the higher the rating the more efficient use of fuel, i.e. 90% means 90% of the fuel use offers warmth for your home and 10% is wasted and escapes with the exhaust.
  • Energy Factor (EF): Energy Factor is the ratio of useful energy output from the water heater to the total amount of energy delivered to the water heater. The higher the EF is, the more efficient the water heater.

Missouri Rebates

 Missouri is offering rebates on energy-efficient appliances through the Energize Missouri Appliance Rebates program to help Missourians save even more on appliances as well as reduce their energy expenses. Rebates are provided on a first-come, first-served basis starting April 19 until all rebate funding is depleted. Natural Gas eligible appliances and potential rebate are:

  • Gas Furnaces $125
  • Water Heaters – Gas Condensing $150
  • Water Heaters – Gas Storage (tanks) $100
  • Water Heaters – Tankless $100
  • Water Heaters – Solar (with Gas Backup) $500*

Missouri residents are eligible to receive Missouri State rebates up to $575 on Energy Star qualified appliances. Qualified appliances are designed to use 10-50% less energy than standard appliances that will result in energy savings when installed properly and reduce emissions of greenhouse gases and pollutants.

The program requires that the new appliance replaces an old appliance (the new appliance must perform the same function as the old appliance) AND the old appliance must be recycled to be eligible for the rebate.

Ask your installation contractor for a qualifying Energy Star appliance and whether they are participating in the State rebate program. Participating installation contractors should collect the old appliance and provide a statement as proof the appliance will be recycled. If the installation contractor does not collect the old appliance, it is the consumer's responsibility to get a receipt from a recycling facility or appliance turn-in event detailing the appliance was delivered. The receipt must include the name and address of the facility, date, signature of the person receiving the appliance and detail of the type of appliance.

For more information visit www.MissouriApplianceRebate.com or call 877.541.4848.

Top of Page

links & resources