Find Out How an HVAC Tax Credit Can Help You and Your Family

Find Out How an HVAC Tax Credit Can Help You and Your Family

A federal HVAC tax credit on new, efficient heating or cooling units could be in your immediate future — if you act promptly. Tax credits for units installed in primary residences have been extended retroactively, and the expiration date now stands at Dec. 31, 2021. Depending on the type of unit purchased, these credits may be based on a percentage of the purchase price up to $500 or a fixed amount up to $300. Here are examples of the federal HVAC tax credit available for efficient heating or cooling upgrades.  

  • Central air conditioners. A fixed HVAC tax credit of $300 is available on residential central AC units with a SEER (Seasonal Energy Efficiency Ratio) of 16 or above.  
  • Gas, propane, or oil central furnaces. Energy Star-certified central furnaces that provide efficient residential heating also qualify for a fixed rebate. High-efficiency furnaces with Annual Fuel Utilization Efficiency (AFUE) ratings of 95 or above are eligible for a $150 tax credit.
  • Furnace fan motor credit. In addition to the above credit on purchase of a new central furnace, installation of an advanced efficient main circulating fan or blower motor adds an additional $50 tax credit.   
  • Heat pump credits. Heat pumps provide both heating and cooling in a single, efficient unit.  The tax credit available on heat pumps is a fixed $300 amount and applies to units with an HSPF (Heating Seasonal Performance Rating) of at least 8.5, an EER (Energy Efficiency Rating) of 12.5 and a minimum SEER of 15.  
  • Insulation. Home insulation is a vital contributor to efficient HVAC operation as it retains indoor heat in winter and keeps heat outdoors during summer. The available tax credit for insulation is 10% of the cost of the material up to $500, not including installation costs. Typical types that qualify include fiberglass batts and rolls, blown-in cellulose fibers, rigid boards, and expanding spray insulation.  

For more information about how the federal HVAC tax credit can benefit you, contact the professionals at Powers Heating & Air.  

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