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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:

  1. Keep installation records and manufacturer certifications.
  2. Fill out IRS Form 5695 for eligible upgrades.
  3. Use one form for multiple upgrades, but remember the $3,200 annual limit.
  4. 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.

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