Upgrading your HVAC system can be a significant investment, but did you know you could offset some of these costs with federal tax credits? Recent legislation has made it easier for homeowners to qualify for credits when they purchase energy-efficient HVAC systems. This blog explores what qualifies, how much you can save, and how to claim these benefits.
Qualifying HVAC Systems
1. Air Source Heat Pumps
Air source heat pumps are among the most energy-efficient HVAC options available. To qualify for tax credits:
- The unit must be ENERGY STAR-certified.
- Split systems require a SEER2 rating of at least 15.2 and an EER2 rating of at least 12.5.
Tax Credit: Homeowners can claim 30% of the project cost, up to $2,000.
2. Central Air Conditioners
Central AC units must meet stringent efficiency criteria to qualify:
- Must be ENERGY STAR-certified.
- Split systems need a SEER2 rating ≥16 and EER2 ≥12.
Tax Credit: Claim 30% of the project cost, up to $600.
3. Gas Furnaces
Gas furnaces must meet high Annual Fuel Utilization Efficiency (AFUE) standards:
- Must have an AFUE of 97% or higher.
Tax Credit: Homeowners can claim 30% of the project cost, up to $600.
4. Advanced Main Air Circulating Fans
These fans help distribute air through your home’s ductwork more efficiently:
- They must use at least 2% of the furnace’s energy consumption.
Tax Credit: Claim 30% of the cost, up to $50.
How to Claim the HVAC Tax Credits
1. Gather Necessary Documentation
- Manufacturer’s Certification Statement: Proof that the system meets federal energy efficiency standards.
- Receipts: Itemized receipts showing the cost of equipment and installation.
2. Complete IRS Form 5695
Include this form when filing your taxes to claim the Residential Energy Efficient Property Credit.
3. Keep Records
Retain all documentation in case of an audit.
Benefits of Upgrading to Energy-Efficient HVAC Systems
1. Energy Savings
Energy-efficient systems consume less power, reducing your monthly utility bills. Over time, these savings can add up significantly.
2. Environmental Impact
Lower energy consumption reduces carbon footprint, contributing to a healthier planet.
3. Enhanced Comfort
Energy-efficient HVAC systems maintain more consistent temperatures and better air quality, improving overall home comfort.
Why Choose Tellez Heat and Air?
At Tellez Heat and Air, we specialize in helping homeowners transition to energy-efficient HVAC systems. From selecting the right unit to handling the installation, our team ensures you maximize your savings while staying comfortable year-round.
Upgrading to an HVAC system that qualifies for tax credits saves upfront costs through credits and results in ongoing savings on your energy bills. Explore your options with Tellez Heat and Air to maximize these financial incentives while enhancing your home’s comfort and efficiency.