Hansberger Refrigeration Blog: Your AC Repair Resource

Is an HVAC Tax Credit Available When You File This Year?

Tax season is fast approaching. If you made any energy-saving upgrades to your HVAC system recently, you may qualify for an HVAC tax credit. Here are some of the credits that are available and how to take advantage of them.

Primary Residence HVAC Tax Credits

If you install new, more-efficient HVAC equipment in your home, you may qualify for a federal tax credit. Upgrades must be made to an existing home which serves as your primary residence. The credit doesn’t apply to commercial buildings, secondary homes, or newly built homes.

If you installed a split-system AC with a SEER rating of 16 or more or an air-source heat pump with a SEER rating of at least 15 in 2021, you can claim a $300 tax credit. If you installed a gas, propane, or oil furnace with an AFUE of at least 95, you can claim a $150 tax credit. You can also claim 10% of the cost of new insulation, weatherstripping, or air-leak sealant, up to $500 and not including installation costs.

If you had a new home built between Jan. 1, 2018, and Dec. 31, 2021, which managed 50% energy savings above the standard set by the 2006 International Energy Conservation Code, you can claim a credit of up to $2,000.

Renewable Energy HVAC Tax Credits

Certain renewable energy systems are eligible for tax credits, including geothermal heat pumps and solar water heaters. If you installed one of these systems before 2020, you can get a 30% tax credit. If you installed one in 2020 or later, you qualify for a 26% tax credit.

If you haven’t installed a renewable-energy HVAC system yet but are considering it, don’t wait. If you do it by the end of 2022, you can still qualify for the 26% credit next year. If you do it in 2023, you can claim a 22% credit.

For help with home improvements that can qualify you for an HVAC tax credit, contact us at Hansberger Refrigeration and Electric Company. We take care of Yuma’s home-comfort needs.