Federal Residential Energy Efficiency Tax Credit

• The federal government's Residential Energy Efficiency tax credit program provides a maximum tax incentive of $300 for taxpayers who purchase an Energy Star qualified central air-conditioning system. To qualify, the air-conditioning system must be for a taxpayer's existing primary residence. Eligible systems must have a certification statement from the manufacturer attesting that the system qualifies for the tax credit; and a seasonal energy efficiency ratio of at least 14. As of August 2011, taxpayers can apply for the program until December 31, 2011.
  
  

Kentucky Energy Efficiency Tax Credit

• Residents, contractors and installers, and owners of multifamily residential dwellings in Kentucky can claim a personal tax credit of up to 30 percent of the installation of energy-efficient central air-conditioning systems. The maximum tax deduction is $250. To qualify for the tax credit, taxpayers must purchase a system which has a minimum seasonal energy efficiency ratio of 14. Taxpayers can use the tax credit in the tax year that they purchase the air-conditioning system, or carry the credit forward for one year. As of the date of publication, the program expires December 31, 2015.
  
  

Montana Energy Conservation Installation Credit

• Owners of residential and multiresidential dwellings in Montana can claim a tax credit of up to $500 per person, or $1,000 per married couple for the purchase of energy-efficient central air-conditioning systems. Qualifying systems must meet federal Energy Star guidelines for energy efficiency. Taxpayers must claim the tax credit in the year that they purchase the air-conditioning system.
  
  

Oregon Residential Energy Tax Credit

• Oregon offers a Residential Energy personal tax credit program for the purchase and installation of eligible energy efficient technologies such as central air-conditioning systems. The tax incentive provides a deduction of 25 percent of the net purchase price of the air-conditioning system, to a maximum of $1,000 per calendar year. Eligible systems must have a warranty from the manufacturer and comply with the standards adopted by the Oregon Department of Energy. Taxpayers must have the air-conditioning system installed by a contractor certified by the Oregon Department of Energy, or receive departmental certification for the air-conditioning system before it is installed. As of the date of publication, the Oregon tax credit is effective until January 1, 2018.
  
  

Virginia Income Tax Deduction for Energy-Efficient Products

• Residents of Virginia can claim a personal tax deduction of 20 percent of the sales tax paid on eligible central air-conditioning systems, to a maximum of $500. Eligible air-conditioning systems must meet the energy-efficiency requirements of the federal Energy Star Program. As of the date of publication, the program expires on July 1, 2012.