Did you upgrade your HVAC system in 2021 to something more efficient? If so, you may be eligible for an HVAC tax credit. There are a number of systems and other improvements that qualify. Here’s what you need to know.
Equipment HVAC Tax Credits
If you installed an air-source heat pump or central-air system last year, you may qualify for a $300 tax credit. For heat pumps, the SEER rating must be at least 15 for a split system or 14 for a package system. Central air systems must be 16 SEER for split systems or 14 for package systems. If you purchased a gas, propane, or oil furnace with an AFUE rating of at least 95%, you can claim a $150 tax credit.
If you installed insulation or sealed up air leaks, you can also get a tax credit: 10% of material costs, such as batts, spray foam, weather stripping, and air sealing caulk—up to $500. Installation costs aren’t included.
Note that these credits only apply to existing, primary homes. Newly built homes and secondary residences (e.g., a vacation home) don’t qualify.
Renewable Energy HVAC Tax Credits
There are several renewable energy improvements that qualify for tax credits, including geothermal heat pumps and solar water heaters. If you purchased and installed these upgrades before 2020, you can get a 30% tax credit. If you had it installed in 2020 or 2021, you can claim a 26% tax credit.
If you’re planning on making renewable-energy HVAC upgrades but haven’t done it yet, do it sooner rather than later. If you make the improvements by the end of this year, you can still qualify for the 26% credit. If you wait until next year, the credit goes down to 23%.
These credits apply to both new and existing homes and both primary and secondary residences.
For help buying and installing new, energy-efficient equipment that can earn you an HVAC tax credit, contact us at Energy 1 Heating & Air Conditioning. We’re the trusted source for quality HVAC solutions for Lorain, Elyria, and Oberlin.
Energy 1 Heating & Air Conditioning
1 (440) 246-5440
Serving the Lorain, OH Area