How Homeowners Can Save Big Using HVAC Tax Credits

Homeowners can score major savings while upgrading to high-efficiency heating and cooling equipment—by claiming the HVAC tax credit. Worth up to $2,600, the federal HVAC tax credit not only saves on installation costs for high-quality HVAC installations in South Jersey, but the equipment upgrades help minimize monthly energy costs in the future.

Here, the pros at HomeServe will walk you through details of the  HVAC tax credit, show you what kinds of HVAC systems are eligible for a tax credit and why you should act now to claim the credits before they expire on December 31, 2025.

What is the Energy Efficient Home Improvement Credit for HVAC Systems?

The federal tax credit for installing new HVAC equipment is an easy way to save when replacing your heating and cooling system in your main residence. You can get up to 30% reimbursed on eligible costs for qualifying systems installed between 2023 and 2025.

There are some limits and requirements—for example, you can only receive up to $2,000 per year for certain systems—and you’ll need to include IRS Form 5695 to claim it on your tax return. Systems must also meet federal efficiency standards to qualify. The credit phases out on Dec. 31, 2025, so homeowners should act soon while it’s still available.

What Systems Are Eligible for an HVAC Tax Credit in South Jersey 

Considering an upgrade, but wondering what HVAC systems qualify for tax credits? A wide range of qualifying energy efficient systems are eligible for the federal HVAC tax credit, giving homeowners multiple choices when it comes to lowering expenses. This credit helps reduce both installing quality HVAC equipment and energy expenses.

Here are some of the frequently installed types of HVAC equipment that qualifies for an Energy Efficient Home Improvement tax credit:

• Central air conditioners: Qualifying central AC units qualify for a HVAC tax credit of up to $600. Installing an energy-efficient air conditioning system in your South Jersey home can improve cooling efficiency and lower energy use during summer.
• Water heaters: Qualifying energy-efficient electric or gas water heaters can earn homeowners a federal HVAC tax credit of up to $600. These systems operate more efficiently while providing reliable hot water throughout the home.
• Furnaces: Natural gas, propane or oil furnaces that comply with efficiency guidelines can qualify for a federal HVAC tax credit of up to $600. Professional furnace installation can improve comfort and cut down on your seasonal energy bills.
• Heat pumps: Heat pumps are among the most versatile HVAC systems and are eligible for a tax credit of as much as $2,000. These systems deliver both heating and cooling while helping reduce energy usage.

How to Get a New HVAC Tax Credit in South Jersey 

Your journey to claiming the Energy Efficient Home Improvement Tax Credit in South Jersey begins by calling the pros at HomeServe. Our Comfort Advisors will explain how the  HVAC tax credit applies to your home, how much you can claim and assist you in selecting qualifying HVAC systems. Then, we’ll take care of expert HVAC installation for reliable efficiency and comfort.  

Contact us online or by calling 888-246-2610 today to start cutting costs on energy-efficient upgrades!