What HVAC Systems Qualify for Tax Credits in 2024?
Premier Comfort Solutions | Derby, Haysville, Mulvane, & Wichita, KS
If you’re planning to upgrade your HVAC system, 2024 is a great year to do it. Thanks to federal incentives, you can make your home more energy-efficient and save money in the process. But not every HVAC system qualifies for tax credits. Let’s break down what you need to know to maximize your savings and upgrade your comfort.
Understanding the Tax Credit Programs for 2024
The passage of the Inflation Reduction Act (IRA) of 2022 offered a substantial amount of tax credits to property owners who opted to undertake energy efficiency home improvements including HVAC systems. These benefits are still applicable in 2024 and target systems aimed at reducing energy use and carbon emissions.
Eligible homeowners can receive a 30% tax credit of up to $2,000 annually for qualifying HVAC systems under the Energy Efficient Home Improvement Credit (25C).
HVAC Systems That Qualify for 2024 Tax Credits
To qualify for tax credits, your HVAC system must meet specific efficiency criteria. Here’s a breakdown of eligible systems:
1. Heat Pumps
- Why Heat Pumps Qualify: Heat pumps are highly energy-efficient, transferring heat rather than generating it. They work for both heating and cooling, making them a year-round solution.
- Requirements:
- Must meet or exceed the Consortium for Energy Efficiency (CEE) Tier 1 requirements.
- Look for systems with a high SEER (Seasonal Energy Efficiency Ratio) rating and an HSPF (Heating Seasonal Performance Factor) of 8.5 or higher.
- Tax Credit Potential: Up to $2,000.
2. Central Air Conditioners
- Why Central AC Units Qualify: These systems use advanced technology to deliver more cooling with less energy.
- Requirements:
- Must meet the CEE Advanced Tier requirements.
- Check for ENERGY STAR certification.
- Tax Credit Potential: Up to $600.
3. Furnaces and Boilers
- Why They Qualify: Modern gas furnaces and boilers with high-efficiency ratings reduce energy consumption significantly.
- Requirements:
- Must achieve an Annual Fuel Utilization Efficiency (AFUE) rating of at least 97% for gas furnaces.
- Boilers must meet high-efficiency criteria.
- Tax Credit Potential: Up to $600.
4. Geothermal Heat Pumps
- Why Geothermal Qualifies: These systems use the Earth’s natural heat for efficient heating and cooling, offering significant long-term energy savings.
- Requirements:
- Must meet ENERGY STAR specifications at the time of installation.
- Tax Credit Potential: Up to 30% of the system cost, with no cap under the Residential Clean Energy Credit (25D).
5. Advanced Thermostats
- Why Smart Thermostats Qualify: By optimizing HVAC performance, smart thermostats help reduce energy waste and improve system efficiency.
- Requirements: Look for ENERGY STAR-certified models.
- Tax Credit Potential: Up to $150.
Steps to Claim Your HVAC Tax Credit
- Choose an Eligible System: Work with a trusted HVAC professional, like Premier Comfort Solutions, to select a qualifying system.
- Save Documentation: Keep your receipts and the Manufacturer’s Certification Statement, which verifies that the system meets the criteria.
- File IRS Form 5695: Use this form when filing your taxes to claim the credit. Consult with a tax professional if needed.
Why Upgrade in 2024?
By installing a high-efficiency HVAC system today, not only does it improve your comfort levels at home, and also reduces your energy bill. Furthermore, such systems are eco friendly, hence compliment the increasing demand for sustainable measures.
Let Premier Comfort Solutions Help You Qualify
Navigating tax credits and choosing the right HVAC system can be overwhelming, but that’s where we come in. At Premier Comfort Solutions, we specialize in energy-efficient installations that meet federal requirements. Serving Derby, Haysville, Mulvane, and Wichita, KS, we’ll help you find the perfect system and maximize your savings.
Call us today to schedule a consultation or learn more about qualifying HVAC systems. Let’s make your home more efficient and comfortable—while saving you money in 2024!
