Approved Large Appliances

• You can receive a tax credit for upgrading the heating or cooling system in your home. Many central air conditioners, advanced air-circulating fans, air source heat pumps, furnaces and hot water broilers qualify for a tax credit. Traditional water heaters such as electric water heaters or gas, oil or propane heaters also qualify. Biomass stoves, used to heat homes or water inside the home, qualify as well. You can receive a tax credit for purchasing renewable energy generators such as windmills, solar panel systems and geothermal heat pumps.
  
  

Tax Credits

• As of 2011, you can receive 10 percent off the cost of purchasing a qualified large appliance up to $500 or a specific amount up to $300, depending on the appliance, according to Energy Star. Different appliances qualify for different tax credit amounts. For example, Energy Star reports that you can receive $300 for purchasing a new central air condition system. If you purchase a renewable generating appliance such as a solar panel system or geothermal heat pump, you can receive a tax credit for 30 percent off the total purchase cost, with no limit, according to Energy Star.
  
  

Qualifications

• While Energy Star approves several large appliances from various brands, not all models qualify for the tax credit. You must check with the manufacturer to confirm the tax credit allowance before purchasing. You'll need to install the large appliance in your primary residence and apply for the tax credit the year you purchase the appliance. You can only claim one tax credit per appliance.
  
  

Applying

• Submit your tax credit along with your regular income taxes by completing a Form 1040. While you don't need to submit a manufacturer's statement or receipt with your form, keep this information for your records. To receive the tax credit, complete an itemized tax return; you can't use the E-Z forms.