Federal HVAC Tax Credit Basics

Homeowners can reduce monthly power bills while upgrading to energy-efficient heating and cooling systems—with the HVAC tax credit. Worth up to $2,600, the federal HVAC tax credit not only lowers initial expenses for high-quality HVAC installations in Eastern Pennsylvania, but the energy-efficient equipment helps lower monthly energy costs hence-forth.

Here, the professionals at UGI Heating, Cooling & Plumbing will explain the  HVAC tax credit, show you what types of heating and cooling systems meet minimum efficiency requirements for a tax credit and why you should act now to take advantage of the credits before they expire on December 31, 2025.

What is the Energy Efficient Home Improvement Credit for Home HVAC Systems?

The federal tax credit for installing new HVAC equipment is an easy way to save when upgrading to a more efficient heating and cooling system in your primary residence. You can get up to 30% back on eligible costs for qualifying systems installed between 2023 and 2025.

There are some limits and rules—for example, you can only receive as much as $2,000 per year for some equipment—and you’ll need to submit IRS Form 5695 to claim it on your tax return. Systems must also exceed minimum efficiency standards to qualify. The credit expires on Dec. 31, 2025, so homeowners interested in upgrading should move quickly while it’s still available.

What Systems Are Eligible for an HVAC Tax Credit in Eastern Pennsylvania 

Thinking about upgrading, but unsure what HVAC systems qualify for tax credits? A wide range of qualifying energy efficient systems are eligible for the federal HVAC tax credit, giving homeowners multiple choices when it comes to lowering expenses. This credit makes it easier to save on both installation costs and energy costs.

Here are some of the most common types of HVAC equipment that qualifies for these savings:

• Central AC systems: Qualifying central AC units are eligible for a HVAC tax credit of a maximum of $600. Installing an energy-efficient air conditioning system in your Eastern Pennsylvania home can improve cooling efficiency and lower energy use during hot summer months.
• Water heaters: High-efficiency electric or gas water heaters can earn homeowners a federal HVAC tax credit of up to $600. These systems operate more efficiently while providing dependable hot water throughout the home.
• Furnaces: Natural gas, propane or oil furnaces that comply with efficiency minimums are eligible for an Energy Efficient Home Improvement Tax Credit of up to $600. Professional furnace installation can improve comfort and cut down on your winter energy costs.
• Heat pumps: Heat pumps are among the industry’s most efficient HVAC systems and can earn a tax credit of as much as $2,000. These systems keep your home comfortable in all seasons with heating and cooling capabilities while helping lower energy usage.

How to Claim a Tax Credit for Installing New HVAC in Eastern Pennsylvania 

Your journey to claiming the Energy Efficient Home Improvement Tax Credit in Eastern Pennsylvania begins by calling the pros at UGI Heating, Cooling & Plumbing. Our Comfort Advisors will explain how the  HVAC tax credit applies to your home, how much you can get back and guide you in selecting tax credit-eligible HVAC systems. Then, we’ll take care of expert HVAC installation for reliable efficiency and comfort.  

Contact us online or by calling 833-980-3496 today to start reducing expenses on energy-efficient HVAC systems!