Federal HVAC System Tax Credit 2024 | McCullough Heating & Air Conditioning

Good news for homeowners! The Federal Inflation Reduction Act of 2022 offers valuable tax credits for upgrading to energy-efficient HVAC systems. This allows you to reduce costs while boosting your home's energy efficiency. Qualifying equipment includes:

Air-source heat pumps
Central air conditioners
Furnaces

Below is a comprehensive guide to HVAC system tax credits available for homeowners in Austin and Georgetown. Learn which systems qualify, such as efficient air conditioning and heating upgrades, and how to claim the federal HVAC system tax credit. Take advantage of these federal incentives to create a more energy-efficient and comfortable home.

Air-Source Heat Pump: Claim a 30% Tax Credit

To qualify for the HVAC system tax credit, install an air-source heat pump between January 1, 2023, and December 31, 2032. The system must meet the following criteria:

Split systems: SEER2 rating of 15.2 or higher
EER2 rating of 11.7 or higher
HSPF2 rating of 7.8 or higher

You can claim 30% of the installation expenses, with a maximum credit of $2,000.

Schedule Service

Central Air Conditioner: Enhanced Tax Credits Available

For units purchased and installed after 2022, here are the key requirements:

Split systems: SEER2 rating of 16 or higher
EER2 rating: 12 or higher

You can claim 30% of the project cost, up to $600.

Furnace Tax Credits by Fuel Type:

Gas furnaces: Must have Energy Star certification and a 97%+ AFUE rating.
Oil furnaces: Require Energy Star certification and an approved fuel type.

You can claim 30% of the project cost, with a cap of $600 for qualifying furnaces and equipment installed from 2023 to 2032.

How to Claim Your HVAC Tax Credit:

Keep installation records and manufacturer certifications.
Complete IRS Form 5695 for eligible upgrades.
Use one form for multiple upgrades, adhering to the $3,200 annual limit.
Submit the form with your federal taxes or consult a tax professional.

As a registered contractor for Austin Energy, McCullough Heating & Air Conditioning offers a FREE Austin Energy-sponsored energy audit to help make your home more energy-efficient, comfortable, and safe.

Download the Instructions Form

Download the Energy Credits Form

Save on Home Upgrades with Federal HVAC System Tax Credits

Air-Source Heat Pump: Claim a 30% Tax Credit

Central Air Conditioner: Enhanced Tax Credits Available

Proudly Serving Austin and the Surrounding Areas