What Are HVAC Tax Credits?

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A new HVAC unit is a major investment in your home. In fact, it’s one of the biggest purchases you’ll make besides replacing a roof or installing solar panels. Because of this, you’ll want to reduce the cost of purchasing a new HVAC system by taking advantage of the HVAC tax credits available to homeowners. These initiatives are now part of the Inflation Reduction Act passed by Congress and signed into law last summer. What does this mean for Arizona homeowners?

Federal HVAC Tax Credit

You can apply for the federal HVAC tax credit when you:

  • Purchase a new HVAC system.
  • Upgrade an existing home’s HVAC system.

The update or installation of a new HVAC system must be at your primary residence (second homes and vacation homes excluded) to qualify for the federal HVAC tax credit.

How to Qualify for the Federal Tax Credit on HVAC Systems

Prior to claiming a federal HVAC tax credit, you need to check your HVAC system’s Seasonal Energy Efficiency Ratio (SEER). If you’d like help with understanding SEER, your local technicians at Cool Blew will be able to provide you with this information. They’ll let you know what air conditioners and heat pumps are eligible for the Federal HVAC tax credit prior to purchasing.

SEER and Tax Credits

The U.S. federal government encourages homeowners to switch over to HVAC systems that are more energy efficient by offering energy tax credits. The credit extends to 30% of the annual project cost of a furnace, boiler, or central air conditioner up to $600 as the maximum amount credited annually. Heat pumps are subject to a higher annual total limit of $2,000.
You’ll want to have a copy of the manufacturer’s certification statement that lists the SEER of your newly purchased HVAC system. This proof will need to be provided to claim a residential tax credit for HVAC system upgrades. Remember to keep all receipts for the items you’re going to write off on your taxes.

Cool Blew is Here to Help

At Cool Blew, we work directly with homeowners to maximize their savings on new HVAC systems. This includes providing the latest information on federal tax credits. We encourage you to call us today to learn more about these savings at 623-872-2900.