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Labor costs for installing building envelope components don't qualify for the credit. Qualified property includes new: Central air conditioners Natural gas, propane, or oil water heaters Natural gas, propane, or oil furnaces and hot water boilers Oil furnaces or hot water boilers can also qualify through other efficiency criteria. Qualified improvements include new: Electric or natural gas heat pumps Electric or natural gas heat pump water heaters Biomass stoves and boilers Subsidies, rebates and incentives When calculating your credit, you may need to subtract subsidies, rebates, or other financial incentives from your qualified property expenses because they're considered a purchase price adjustment.
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