What HVAC Tax Credit Can You Get When Filing This Year?

Staying comfortable in South Florida can get expensive, but an HVAC tax credit for your new, energy-efficient home upgrade will help keep more money in your pocket.

HVAC Tax Credits to Grab This Year

Several tax credits for renewable-energy equipment were set to expire soon, but they’ve been extended to apply to equipment installed through Dec. 31, 2021. For certain equipment installed in 2021 in your principal residence, you could claim a credit of $50 to $300—or 10% of the cost up to $500. For example, if you installed a split-system AC with a SEER of 16 and an EER of 13 or higher, or a heat pump with a SEER of 15 and an HSPF of 8.5 or higher, you can claim a $300 credit. Credits are also available for gas, propane, and oil furnaces and boilers, as well as for advanced, main-air circulating fans and biomass stoves.

Finished building a new home last year? If so, you could benefit from the Federal Energy Policy Act of 2005, which offers tax credits of up to $2,000 for builders of new, energy-efficient residences through Dec. 31, 2021. The home must be 50% more efficient in terms of heating and cooling than the requirements put forth by the 2006 International Energy Conservation Code (IECC), and at least 20% of the energy savings must come from the building envelope’s construction.

HVAC Tax Credits for 2021 and Beyond

Residential geothermal heat pumps, solar water heaters, small wind turbines, and fuel cells can qualify for an HVAC tax credit this year and through December 31, 2023. If you’ve been considering installing one of these systems, you’ll save more the sooner you get it done. Install your equipment in 2022 and you’ll enjoy a 26% tax credit. Wait until 2023, though, and the credit falls to 22%. Before you choose your equipment, make sure it meets the efficiency standards required to qualify for the credit.

For tips on finding energy-efficient HVAC equipment, contact us at NisAir Air Conditioning and Heating throughout Martin, Palm Beach, and Indian River counties.

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