For full information on all federal tax credits, visit energystar.gov.
Is Your Air Conditioner Eligible for a $300 Federal Tax Credit?
**UPDATE JANUARY 2023: We have another article with 2023 information about the new tax credits available under the Inflation Reduction Act.
For the 2022 tax year and earlier, keep reading this article. The Non-Business Energy Property Tax Credits are still in effect. These have been extended to apply retroactively to qualifying air conditioners, heat pumps, and other energy efficient equipment placed in service through December 31, 2022.
What is the Tax Credit?
Tax Credit: $300 (Maximum of $500 for all energy efficiency improvements claimed under this credit)
Expires: December 31, 2022
Details: Equipment must be installed in an existing home & your principal residence. New construction and rentals do not apply.
What are the Requirements?
Please consult a tax professional to ensure that you meet all of the requirements necessary to receive the tax credit. Additionally, to verify equipment eligibility, ask your HVAC contractor to provide the Manufacturer Certification Statement for the air conditioning system you purchased or plan to purchase.
NOTE: You may claim up to a total lifetime credit of $500. If you’ve already claimed $500 from the Nonbusiness Energy Property Tax Credits since 2005, you won’t be eligible to claim any more credits.
Here are some of the efficiency requirements for air conditioners and heat pumps:
To receive a tax credit of $300, the air conditioning system must meet the following criteria:
SEER >= 16
EER >= 13
SEER >= 14
EER >= 12
Certain heat pumps also qualify for a tax credit of $300. They must meet the following criteria:
HSPF >= 8.5
EER >= 12.5
SEER >= 15
HSPF >= 8
EER >= 12
SEER >= 14
How Do I Apply?
File IRS Form 5695 with your tax return. The credit amounts you may receive are subject to IRS regulations, so we recommend consulting a tax professional for advice on tax preparation.
Do Any Other Appliances Qualify for a Tax Credit?
Even if you don’t plan on upgrading your heating & cooling system, you might intend to purchase another qualifying household appliance like a hybrid water heater. Check the entire list of qualifying home improvements.
Get a Free Quote on a New Air Conditioner
Need a new air conditioner in Sarasota or Charlotte County? Call us today at (941) 474-3691 or fill out this form to get a free, no-obligation quote:
*Disclaimer: The tax credit information contained within this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS).