Summer is coming and so is the heat. It’s time to make sure your air conditioning system is up to the task of keeping you and your family cool during those sweltering hot days. But replacing an air conditioning system can be quite expensive. However, did you know that there is financial relief available for those who qualify? New federal income tax credits are available through 2032. These tax credits are providing up to $3,200 annually for homeowners in order to lower the cost of energy efficient home upgrades by 30%.
Today, we’ll go over the minimum requirements you need to meet in order to take advantage of these tax credits.
So don’t sweat it (Get it?), there is financial relief available for qualifying systems through Federal Energy Tax Credits.
Federal Energy Tax Credits For HVAC Systems in 2023
First off, in order to qualify for these tax credits, you need to purchase and install a qualifying central air conditioner. But what exactly is a qualifying central air conditioner? Well, the model needs to have a seasonal energy efficiency ratio (SEER) of at least 16 for a split system and 14 for a package system. The higher the SEER, the more efficient the model.
This means that units such as ductless mini splits won’t count towards the tax credits.
But that’s not all; central air conditioners also need to have a high-energy efficiency ratio (EER). Split systems must have a minimum EER of 13, while package systems must have a minimum EER of 12. Meeting these minimum requirements is crucial if you want to take advantage of the tax credits available. Make sure to keep these numbers in mind when shopping for a new air conditioning system.
It’s also important to note that the tax credits are only available for existing residences. If you’re building a new home, unfortunately, you won’t qualify for these breaks. Additionally, the structure must be your primary residence, so if you have a vacation or second home, you won’t be able to avail of these tax credits.
But don’t worry, even if you don’t meet these minimum requirements, there are still other options available that can help you save money on your new air conditioning system. For example, some HVAC companies offer financing options that can make it easier to afford a new system. Plus, it’s always a good idea to shop around and compare prices to make sure you’re getting the best deal possible.
A few minimum requirements must be met before you can qualify for these credits:
- A qualifying central air conditioner must be purchased and installed.
- The tax credits are only available for central air conditioner models that have a seasonal energy efficiency ratio (SEER) of at least 16 for a split system and 14 for a package system. The larger the SEER, the more efficient the model.
- Central air conditioners need to have a high energy efficiency ratio (EER). Split systems must have a minimum EER of 13, while package systems must have a minimum EER of 12.
- Tax credits are for existing residences only, so new construction does not qualify for these breaks. Also, the structure must be your primary residence, not a vacation or second home.
To find out more about how you can qualify for free Federal Energy Tax Credits, call our office today for a free consultation. Here at Thomas Service Company, we’re here to help local homeowners with their HVAC systems by installing the right systems for their homes at an affordable rate. If you have any questions about these requirements or need help with them, give us a call today!
Other Tax Credits for Homeowners in 2023
Not only can homeowners take advantage of energy tax credits for HVAC systems, but there are also others they can utilize to save more money. Homeowners can use modified and extended residential clean energy credits. These provide an additional 30% income tax credit for clean energy equipment. These include things such as:
- Rooftop solar
- Wind energy
- Geothermal heat pumps
- Battery storage
So if you want to save as much money as possible, these tax credits are well worth taking advantage of!
Working With an HVAC Company To Install HVAC Systems With Tax Credits
When it comes to installing and upgrading HVAC systems, you’ll want to work with a reputable HVAC company. Not only can we help you find the right system for your needs and budget, but we can also assist in navigating the tax credit process. We’re well-versed in understanding what qualifies for credits and how they work. If you’re ready to get started and take advantage of these tax credits, contact us today.