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All of Virginia · Program

Sales Tax Paid on Certain Energy Efficient Equipment or Appliances (income tax deduction)

Run by Virginia Department of Taxation (Virginia Tax)

A Virginia income tax deduction for 20% of the sales tax you paid on certain ENERGY STAR appliances and high-efficiency heat pumps, water heaters, AC, boilers, furnaces and programmable thermostats, up to $500 a year ($1,000 joint).

Open Checked Oct 20, 2026

Amounts

How much you get

Deduct 20% of the Virginia sales tax you paid on qualifying equipment bought for your own use, up to $500 per taxable year ($1,000 on a joint return). This reduces taxable income, not tax owed.

Eligibility

Do I qualify?

You need to meet all 3 of these.

  • Your home is in Virginia.

  • You file a Virginia individual income tax return and paid Virginia sales tax on the equipment, bought for your own use.

  • The item must be on the statute's list and meet its efficiency minimums (see equipment requirements).

    What to doCheck the model's ENERGY STAR status or rating (HSPF, SEER, EF, AFUE) before buying, and keep the receipt showing sales tax. See what equipment counts

Equipment

What equipment counts

The program sets these minimums for appliances, heat pumps, water heaters and furnaces, ac and thermostats.

  • Clothes washers, room air conditioners, dishwashers and standard size refrigerators that meet or exceed ENERGY STAR requirements.

  • Heat pumps

    Electric heat pump with a heating system performance factor (HSPF) of at least 8.0 and a cooling SEER of at least 13.0; or a gas heat pump with a heating COP of at least 1.25 and cooling COP of at least 0.70.

  • Heat pump water heaters

    Electric heat pump water heater with an energy factor of at least 1.7.

  • Central air conditioners

    Central air conditioner with a SEER of at least 13.5.

  • Water heaters

    Advanced gas or oil water heater with an energy factor of at least 0.65.

  • Boilers

    Advanced oil-fired boiler with an AFUE of at least 85.

  • Furnaces

    Advanced oil-fired furnace with an AFUE of at least 85.

  • Thermostats

    Programmable thermostats.

  • Fuel cell generating electricity electrochemically, with electricity-only efficiency above 35% and capacity of at least 2 kW.

Applying

How to apply

You claim it on your tax return. Claim on your Virginia return for the taxable year of purchase.

  1. Keep the receipt showing the Virginia sales tax paid.
  2. Claim the deduction on your Virginia income tax return for the year of purchase.

    Listed by Virginia Tax among the deductions on the individual return.

Forms and instructionsVa. Code § 58.1-322.03 Virginia taxable income; deductions

Your address

Next steps

Check that it covers your address. Then, if you want, ask for a contractor quote.

FAQ

Questions

How much does Sales Tax Paid on Certain Energy Efficient Equipment or Appliances (income tax deduction) pay?

Deduct 20% of the Virginia sales tax you paid on qualifying equipment bought for your own use, up to $500 per taxable year ($1,000 on a joint return). This reduces taxable income, not tax owed.

What’s the deadline?

No fixed deadline. Apply any time while it’s open.

Is it still available?

Yes. It was open when we last checked, on October 20, 2026.

References

Sources

This page is built from these official pages, run by the program itself.

  1. Virginia Tax - Deductionstax.virginia.gov · Read Oct 20, 2026 · Re-checked weekly
  2. Va. Code § 58.1-322.03 Virginia taxable income; deductionslaw.lis.virginia.gov · Read Oct 20, 2026 · Re-checked monthly

When one of these pages changes, we re-check this page against it.

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