• Incentives are available to homeowners installing energy-efficient appliances.Jupiterimages/Photos.com/Getty Images
  
  In order to encourage home owners to become more energy efficient, The United States Department of Energy, in partnership with with the federal government, has come up with tax incentives and credits for homeowners who are spending money on "green" upgrades for their homes. Air conditioners are included in the qualifying appliances list for some of these incentives.
  
  

Federal Tax Credits

• Energy Star central air conditioners and air circulating fans are part of the federal tax credit program. These tax credits are for existing homes only, and homeowners can get 30 percent of the cost of their air conditioning unit back as a tax credit, up to a total of $1,500. The appliances also must be Energy Star-rated to qualify. This tax credit expires December 31, 2010.
  
  

Photovoltaic Air Conditioner Tax Credit

• The federal tax credit of 30 percent of the cost of energy-efficient appliances up to $1,500 also covers another type of air conditioner, those that are solar-powered. Because these are covered under "photovoltaic energy" installations, the same federal tax credit applies to these air conditioners, but with the solar-powered air conditioners there is no limit on the tax credit. In other words, homeowners can get a tax credit of 30 percent of the cost of installing these air conditioners, with no limit imposed, unlike other conventional energy-efficient air conditioners, that are limited to a maximum tax credit of $1,500.
  
  

State Rebates

• Each state has its own energy-efficient appliance rebate program, which is combined with the federal tax credit program. The monetary amount of the rebates varies according to the state you're in, but both room or window air conditioners and central home air conditioners qualify for these rebates. As with the tax credits, appliances must be Energy Star-rated to qualify for the rebates.