Thanks to the Inflation Reduction Act (IRA), investing in an energy-efficient HVAC system is more affordable than ever. This act allocates nearly $370 billion to climate and energy programs, and homeowners who invest in eligible HVAC systems may qualify for incentives that benefit both their wallet and the planet.
Homeowners who install a qualifying HVAC system before December 31, 2032 may be eligible for higher incentives under the expanded Energy Efficient Home Improvement Tax Credit (25C). The program provides a tax credit of up to 30% of installation costs (up to $1,200/year) for qualified products:
*The maximum 25C tax credit amount is $3,200 when a qualifying heat pump is included in the purchase.
*Some states and locations may offer additional tax incentives, rebates, or credits for investing in energy-efficient HVAC, depending upon income and other factors.
Homeowners who install a qualifying HVAC system between January 1, 2024 and December 31, 2032 may be eligible for higher incentives under the expanded Energy Efficient Home Improvement Tax Credit (25C). The program provides a tax credit of up to 30% of installation costs (up to $1,200/year) for qualified products:
*The maximum 25C tax credit amount is $3,200 when a qualifying heat pump is included in the purchase.
*Some states and locations may offer additional tax incentives, rebates, or credits for investing in energy-efficient HVAC, depending upon income and other factors.