Energy Efficient HVAC Systems and the 25C Tax Credit

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A stack of dollar bills with a calculator and tax forms. Symbolizes financial management and tax obligations.

It seems like everything is more expensive these days, including rising utility bills over this past brutally hot summer for homeowners in the Valley of the Sun. Energy-efficient HVAC systems can offer you a way to decrease your monthly utility bills, increase your family’s comfort along with maximizing your hard-earned money in a long-term investment. This may sound counterintuitive with the initial expense of replacing your HVAC system, but this investment in your home is bolstered by two key tax benefits.

25C Federal Tax Credit

The Energy Efficient Home Improvement Credit (25C) provides generous federal tax credits for installing energy efficient HVAC equipment effective January 1, 2023.

  • Up to $600 each for a qualified air conditioner or gas furnace capped annually at $1,200.
  • Up to $2,000 for a qualified heat pump, heat pump water heater, or boiler.

The 25C tax credit resets every year which means you can use it over and over through 2032. You just need to choose equipment that meets the highest efficiency standards available at the time you plan to claim the credit. For most HVAC systems, that simply means finding the ENERGY STAR certification on the label.

Energy Audits

Energy audits are an indispensable way of finding out where your home may be wasting precious energy. By having your local HVAC professionals conduct an energy assessment before installing a new HVAC system, you’ll know exactly what your home needs and how to fix it. Up to $150 of an energy audit can go towards a tax credit to deduct the amount of the credit from the taxes you may owe.

If you’re ready to switch to a more energy efficient HVAC system, Cool Blew is here to help. We offer a wide variety of products so that you can find the best fit for your home and budget. Cool Blew is proud to offer affordable financing arrangements with leading HVAC financing companies. Give us a call today at 623-872-2900 to schedule an appointment.