Ways to Save Big with HVAC Tax Credits

Homeowners can save big while upgrading to high-efficiency heating and cooling systems—by claiming the HVAC tax credit. Worth up to $2,600, the federal HVAC tax credit not only reduces upfront costs for high-quality HVAC installations in Centennial, but the energy-efficient equipment helps lower monthly energy costs going forward.

In this blog, the pros at HomeSmart will walk you through details of the  HVAC tax credit, show you what types of heating and cooling systems meet minimum efficiency requirements for a tax credit and why you should act now to claim the credits before they expire on December 31, 2025.

What is the Energy Efficient Home Improvement Credit for HVAC Systems?

The federal tax credit for installing new HVAC equipment is an easy way to save when upgrading to a more efficient HVAC system in your primary residence. You can get up to a 30% credit on eligible costs for eligible systems installed between 2023 and 2025.

There are some limits and rules—for instance, you can only get up to $2,000 per year for some systems—and you’ll need to file IRS Form 5695 to claim it on your tax return. Units must also meet federal efficiency standards to qualify. The credit expires on Dec. 31, 2025, so homeowners who want to save need to take action now while it’s still available.

Which Systems Are Eligible for an HVAC Tax Credit in Centennial 

Thinking about upgrading, but wondering what HVAC systems qualify for tax credits? A wide range of energy-saving systems are eligible for the federal HVAC tax credit, giving homeowners multiple choices when it comes to lowering expenses. This credit helps reduce both the cost of high-quality HVAC systems and energy expenses.

Here are some of the top HVAC systems that qualify for a federal HVAC tax credit:

• Central air conditioners: Qualifying central AC units qualify for a HVAC tax credit of up to $600. Upgrading to an energy-efficient air conditioning system in your Centennial home can boost your comfort and lower energy use during hot summer months.
• Water heaters: High-efficiency electric or gas water heaters may be eligible for a federal HVAC tax credit of up to $600. These systems use less energy while providing dependable hot water throughout the home.
• Furnaces: Natural gas, propane or oil furnaces that meet efficiency guidelines are eligible for a federal HVAC tax credit of up to $600. Professional furnace installation can increase comfort and cut down on your winter energy costs.
• Heat pumps: Heat pumps are among the highest-efficiency HVAC systems and can earn a tax credit of up to $2,000. These systems deliver both heating and cooling while helping lower energy usage.

How to Claim a Tax Credit for Installing New HVAC in Centennial 

The path to claiming the federal HVAC tax credit in Centennial begins by calling the pros at HomeSmart. Our Comfort Advisors will walk you through how the  HVAC tax credit applies to your home, how much you can claim and help you in selecting eligible HVAC systems. Then, we’ll take care of expert HVAC installation for lasting efficiency and comfort.  

Contact us online or by phoning 866-837-9762 today to start reducing expenses on energy-efficient upgrades!