Sales and Use Tax Exemption for Energy-Efficient Products

Summary

In Connecticut, residential weatherization products for residential use only are exempt from the state's sales and use tax. Eligible residential weatherization products include CFLs, programmable thermostats, window film, caulking, window and door weather strips, insulation, water heater blankets, water heaters, natural gas and propane furnaces and boilers that meet the federal Energy Star standard, windows and doors that meet the federal ENERGY STAR standard, oil furnaces and boilers that are not less than 84% efficient and ground-source heat pumps that meet the minimum federal energy efficiency rating. Exemption only applies to in-store sales.

For additional information about this exemption, please visit the Connecticut Department of Revenue Services website.

Updated policy reflected in SN 2015(11). 

The sales and use tax exemption for residential weatherization products and compact fluorescent light bulbs is repealed effective for sales occurring on and after January 1, 2016.

Sales of residential weatherization products will be subject to the following transitional rules:

-If a customer purchases a residential weatherization product, and the customer pays for the item in full, or is fully charged, prior to January 1, 2016, the exemption applies even if delivery is made on or after January 1, 2016.

-If a customer pays a deposit to the retailer on or before December 31, 2015, for a residential weatherization product, and the retailer pulls the product from its inventory or otherwise accounts for the sale of the product in its inventory control system, the exemption applies even if delivery is made on or after January 1, 2016.

-If a customer pays a deposit to the retailer on or before December 31, 2015, for a residential weatherization product that is not currently in stock or that is not accounted for as a sale in the retailer’s inventory control system, the exemption will not apply if delivery is made to the customer on or after January 1, 2016.

Delivery is made to the customer when the retailer delivers the item to the customer at the retailer’s establishment or at the customer’s location, or ships the item to the customer.