Save on Home Upgrades with Federal HVAC System Tax Credits
Great news for homeowners! The Federal Inflation Reduction Act of 2022 presents tax credits for energy-efficient HVAC upgrades, allowing you to save money while improving 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 upgrades in Georgetown. This guide helps you navigate qualifying upgrades and claiming credits on your taxes. Take advantage of these incentives to craft a comfortable, eco-friendly home.
Air-Source Heat Pump: Claim a 30% Tax Credit
Install 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
For units purchased and installed after 2022:
- Split systems need a SEER2 rating of 16 or higher
- Energy Star-certified packaged systems are eligible
Claim 30% of the project cost, up to $600.
Furnace: Tax Credits by Fuel Type
Gas furnaces require Energy Star certification and a 97%+ AFUE rating.
Oil furnaces need Energy Star certification and an approved fuel type.
Claim 30% of the project cost, capped at $600 for qualifying furnaces installed from 2023 to 2032.
How to Claim Your HVAC Tax Credit:
Maintain installation records and manufacturer certifications.
Complete IRS Form 5695 for eligible upgrades.
Utilize one form for multiple upgrades, mindful of the $3,200 annual limit.
Submit completed forms with your federal taxes or consult a tax professional for optimal 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.
