Maximizing Savings: Federal HVAC System Tax Credits
Good news for homeowners! The Federal Inflation Reduction Act of 2022 offers tax credits for energy-efficient HVAC upgrades. This means savings while boosting your home’s efficiency. Eligible equipment includes:
1. Air-source heat pumps
2. Central air conditioners
3. Furnaces
Here’s a breakdown of available tax credits for HVAC improvements in Austin, guiding you on qualifying upgrades and claiming credits on your taxes. Make the most of these incentives to create a comfortable, eco-friendly home.
Air-Source Heat Pump: Claim a 30% Tax Credit
nstall an air-source heat pump meeting these criteria between Jan 1, 2023, and Dec 31, 2032:
- SEER2 rating of 16 or higher
- EER2 rating of 12 or higher
- HSPF2 rating of 9 or higher
You can claim 30% of installation expenses, capped at $2,000.
Central Air Conditioner: Enhanced Tax Credits Available
Central Air Conditioner: Enjoy Enhanced Tax Credits
For units bought and installed after 2022:
- Split systems need a SEER2 rating of 16 or higher
- Energy Star-certified packaged systems qualify
Claim 30% of the project cost, capped at $600.
Furnace: Tax Credits Based on Fuel Type
Gas furnaces need Energy Star certification and a 97%+ AFUE rating.
Oil furnaces require Energy Star certification and approved fuel type.
Claim 30% of project cost, capped at $600 for qualifying furnaces installed from 2023 to 2032.
How to Claim Your HVAC Tax Credit:
- Keep installation records and manufacturer certifications.
- Fill out IRS Form 5695 for eligible upgrades.
- Use one form for multiple upgrades, but remember the $3,200 annual limit.
- Submit completed forms with your federal taxes or seek help from a tax professional for maximum refunds.
As a registered contractor for Austin Energy, McCullough Heating and Air Conditioning is proud to offer a FREE Austin Energy-sponsored energy audit. Our goal is to show you the potential of your home and guide you toward making it more energy-efficient, comfortable, and safe.
