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$300 Federal Tax Credit for Air Conditioners

For full information on all federal tax credits, visit energystar.gov.

Is your air conditioner eligible for a $300 tax credit? photo of ac with hand holding cash

Is Your Air Conditioner Eligible for a $300 Federal Tax Credit?

**UPDATE AUGUST 2022: The Non-Business Energy Property Tax Credits have been extended to apply retroactively to qualifying air conditioners, heat pumps, and other energy efficient equipment placed in service through December 31, 2022. As a result of the Inflation Reduction Act, new tax credit updates will be rolling out in 2023.

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:

Air Conditioners

To receive a tax credit of $300, the air conditioning system must meet the following criteria:

Split Systems:
SEER >= 16
EER >= 13

Packaged Systems:
SEER >= 14
EER >= 12

Heat Pumps

Certain heat pumps also qualify for a tax credit of $300. They must meet the following criteria:

Split Systems:
HSPF >= 8.5
EER >= 12.5
SEER >= 15

Packaged Systems:
HSPF >= 8
EER >= 12
SEER >= 14

How Do I Apply?

File IRS Form 5695 with your tax return. The 2022 form is not available yet, but you can download the 2021 form here. 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.

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