Installing an energy-efficient HVAC system in your house can help improve indoor air quality and save your hard earned money on higher energy bills. In addition, you can claim a federal tax credit by installing an energy-efficient heating and cooling system.
Most homeowners must learn how to qualify for energy-efficient HVAC tax credit and miss out on the biggest opportunity. IRS offers a 25c tax credit equal to 10% of the installation costs to homeowners who make qualified energy-efficient improvements in their houses. To qualify for the energy-efficient HVAC tax credit, you must take specific steps to showcase your appropriate work to IRS.
If you’re still determining whether you’re eligible for energy-efficient HVAC tax credit, this write-up is exclusively for you. Please learn about the eligibility criteria and how to qualify for this tax without making any costlier mistakes.
Energy Efficient Tax Credit: A Brief Overview
The US government offers homeowners excellent tax incentives for installing energy-efficient heating and cooling systems. The prime objective of this tax credit is to encourage homeowners to upgrade their HVAC systems to save money and power in the long run.
If you’re living in the United States, you can claim a federal tax credit of up to $300 for installing a new HVAC system that meets energy-efficient requirements. Eligible HVAC systems include air conditioners, heat pumps, and hot water boilers that generate at least 90% of their heat output from electricity.
Energy-efficient HVAC tax credits can significantly reduce the cost of upgrading to more energy-efficient HVAC units and encourage homeowners to take immediate action.
Benefits of Energy-Efficient HVAC System
Along with qualifying for excellent tax incentives, you can enjoy the additional benefits of installing an energy-efficient HVAC unit. For example:
- Reduced carbon footprint
- Reduced monthly utility bills
- Reduced risk of severe health problems
How to Qualify for Energy Efficient HVAC Tax Credit
You can claim an energy-efficient tax credit to increase your energy efficiency by 10% or more. To avail of this opportunity, you must install a new HVAC system within the tax year and complete the necessary paperwork.
In some cases, IRS requires you to exceed $500 in total for installation and maintenance to qualify for the tax credit. Sometimes, the IRS issues energy efficiency tax credits of up to $1500 for cooling and heating systems to boost your energy efficiency by 50%.
Meeting the eligibility criteria for energy-efficient HVAC tax credit is a challenging task. So, you must work with professional and licensed contractors to complete the process seamlessly. We at Diamond Air Design can help design and install an HVAC system that meets all the requirements so that you can enjoy the advantages of tax incentives.