Did you know that investing in a new, energy-efficient HVAC system can mean big savings for you? Not only will you benefit from lowering your monthly energy bills, but come tax season, you could get hundreds if not thousands of dollars back in your pocket for making this environmentally friendly investment.
Energy tax credits are a way for the government to incentivize taxpayers to switch their energy sources from fossil fuels to more sustainable resources. In this particular case, the federal government has established energy tax credits that can effectively reduce the cost of purchasing HVAC equipment. However, instead of getting that savings immediately, the taxpayer gets an HVAC tax credit that gives them money back during the tax-filing process. Please keep in mind that not all units qualify for these HVAC tax credits: only systems with high energy efficiency ratings are eligible for the tax credits because those systems consume less electricity and energy.
Effective Jan 1, 2023: Provides a tax credit to homeowners equal to 30% of installation costs for the highest efficiency tier products, up to a maximum of $600 for qualified air conditioners and furnaces, and a maximum of $2,000 for qualified heat pumps.