How Homeowners Can Save Big Using HVAC Tax Credits

Homeowners can score major savings while upgrading to high-efficiency heating and cooling systems—thanks to a 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 energy-efficient equipment helps reduce monthly energy costs going forward.

In this blog, the professionals at HomeServe will walk you through details of the  HVAC tax credit, show you what types of HVAC systems qualify 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 a smart way to save when replacing your heating and cooling system in your main residence. You can get up to 30% back on eligible costs for qualifying systems installed between 2023 and 2025.

There are some limits and rules—for instance, you can only receive up to $2,000 per year for some equipment—and you’ll need to file IRS Form 5695 to claim it on your tax return. Systems must also satisfy efficiency standards to qualify. The credit ends on Dec. 31, 2025, so homeowners interested in upgrading should move quickly while it’s still available.

Which Systems Qualify for an HVAC Tax Credit in South Jersey 

Thinking about upgrading, but not sure what HVAC systems qualify for tax credits? A wide range of energy-saving systems are eligible for the federal HVAC tax credit, giving homeowners multiple choices when it comes to lowering expenses. This credit can significantly cut both installation costs and energy expenses.

Here are some of the most common HVAC systems that qualify for an Energy Efficient Home Improvement tax credit:

• Central AC systems: Qualifying central air conditioning units are eligible for a HVAC tax credit of as much as $600. Installing an energy-efficient air conditioning system in your South Jersey home can boost your comfort and reduce energy use during hot summer months.
• Water heaters: Qualifying energy-efficient electric or gas water heaters can earn homeowners a federal HVAC tax credit of up to $600. These systems minimize waste while providing reliable hot water throughout the home.
• Furnaces: Natural gas, propane or oil furnaces that comply with high-efficiency standards can qualify for an Energy Efficient Home Improvement Tax Credit of up to $600. Professional furnace installation can improve comfort and cut down on your seasonal energy costs.
• Heat pumps: Heat pumps are among the industry’s most efficient HVAC systems and are eligible for a tax credit of a maximum of $2,000. These systems keep your home comfortable in all seasons with heating and cooling capabilities while helping lower energy usage.

How to Claim a New HVAC Tax Credit in South Jersey 

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

Contact us online or by calling 888-246-2610 today to start cutting costs on energy-efficient heating and cooling equipment!