Energy Efficient HVAC Tax Credit: Here's How You May Qualify

Installing an energy-efficient HVAC system can help save you money on your energy bills and improve the air quality in your home. However, many homeowners miss out on the opportunity to save even more money by not taking advantage of the energy-efficient HVAC tax credit, which the IRS currently offers to homeowners who make qualified energy-efficiency improvements to their homes. In order to qualify for this credit, you must take specific steps and file the appropriate paperwork with the IRS.

However, you need to work with a skilled HVAC technician to ensure you qualify for the tax credit and don't make any costly mistakes during the installation process. In this article, we'll cover the basics of the energy-efficient HVAC tax credit, explain how it can save you money, and provide a recommendation for excellent air conditioner repair by Inland Empire Comfort. The professionals at Inland Empire Comfort can ensure that your new system functions as intended so that you can take advantage of the tax credit and save money for years to come.

What Is the Energy Efficient HVAC Tax Credit?

For years, the U.S. government has offered tax incentives to install particular heating and cooling systems. These tax credits encourage homeowners to make energy-efficient upgrades to their HVAC systems to save energy and money in the long run.

Currently, homeowners can claim a $300 tax credit for installing a new HVAC system with an ENERGY STAR rating that meets the efficiency requirements. Eligible systems include heat pumps, air conditioners, and hot water boilers that generate at least 90% of their heat output from electricity. These tax credits can significantly reduce the cost of upgrading to a more energy-efficient HVAC system and encourage more homeowners to take action.

How Do I Qualify for the Tax Credit?

This credit allows homeowners to claim a credit for improvements to their homes that increase their energy efficiency by 10% or more. In order to take advantage of this tax credit, you'll need to install a new system that meets these requirements within the walls of your home or building and meet certain conditions outlined in IRS Publication 5524.

Qualifying upgrades include installing a new HVAC system, upgrading your insulation, installing new windows, or replacing your roof. To qualify for the credit, you must install the new system within the tax year in question and complete the necessary paperwork before filing your taxes. In most cases, the cost of the installation and the improvement must exceed $500 in total in order to qualify. In some cases, the IRS will issue tax credits of up to $1,500 for particular heating and cooling systems that boost energy efficiency by 50% or more.

If you meet this threshold, you should automatically qualify for the maximum available credit of $1,500. However, discussing these plans with a tax professional is essential to ensure that your installation qualifies for the tax credit.

Other Benefits of Energy-Efficient HVAC Systems

While the energy-efficient HVAC tax credit provides an incredible incentive for homeowners to upgrade their existing heating and cooling systems, they can also enjoy other benefits after upgrading to a more energy-efficient system.

First, installing an energy-efficient HVAC system can help to lower your monthly utility bills, helping to loosen your monthly budget. Second, it can help reduce your carbon footprint and protect the planet for future generations. Lastly, it can reduce your risk of severe health problems due to exposure to dangerous levels of indoor air pollution.

Start Upgrading Your HVAC System Today

The U.S. government offers tax breaks for homeowners who make improvements to their property that increase energy efficiency. However, meeting the requirements of these credits can be complex, so working with a qualified professional is the best choice.

At Inland Empire Comfort, we can help you design and install a system that meets these requirements so that you can take advantage of the available tax incentives. Our team has years of experience installing and servicing a wide range of heating and cooling devices and can install your new system quickly and efficiently.

If you'd like to learn more about different types of residential HVAC systems or have other heating and cooling questions, feel free to explore the rest of our website for more helpful articles. Then, when you're ready to begin planning your new HVAC system to take advantage of the energy-efficient HVAC tax credit, call the experts at Inland Empire Comfort at (951) 336-1892 to discuss your options and schedule your service.