What is energy-efficient building property?

The IRS defines energy-efficient building property as:

• An electric heat pump water heater that yields an energy factor of at least 2.2 in the standard Department of Energy test procedure.
• An electric heat pump that achieves the highest efficiency tier established by the Consortium for Energy Efficiency (CEE) as in effect on January 1, 2009.
• A central air conditioner that achieves the highest efficiency tier that has been established by the CEE as in effect on January 1, 2009.
• A natural gas, propane, or oil water heater that has an energy factor of at least 0.82 or a thermal efficiency of at least 90%.
• An advanced main air circulating fan is an efficient fan, or blower motor which blows the air that your furnace heats up through the duct system and uses no more than 2% of the furnace’s total energy.
• A biomass fuel stove used to heat your home (or water for your home) that has a thermal efficiency rating of at least 75%. Wood and wood pellets are considered biomass. For 2022, the credit isn't capped and covers 30% of the full cost (purchase and installation).

You can get 10% of the cost of energy-efficient building property or $300 (whichever is less) as a tax credit.