HVAC System Tax Credits

The Energy-Efficient Home Improvement Credit (EEHIC) program provides homeowners with tax credits for eligible products and services related to energy-efficient home improvements. The program is in effect from January 1, 2023, until 2032, offering incentives for various upgrades aimed at improving energy efficiency. Here are key points to know about the EEHIC:

• Eligible Improvements: The EEHIC covers a range of energy-efficient home improvements, including the installation of heat pumps, heat pump water heaters, and energy-efficient HVAC systems, such as furnaces, boilers, and central AC units.
• Annual Caps: The EEHIC has specific annual caps for different HVAC systems. Traditional HVAC systems qualify for a tax credit of up to $1,200 per year. Qualified air conditioners or gas furnaces can receive a tax credit of up to $600 each. Furthermore, there is a separate annual tax credit cap of up to $2,000 for qualified heat pumps, heat pump water heaters, or boilers.
• Cost Reduction: By taking advantage of the EEHIC, homeowners can significantly reduce the cost of energy-efficient upgrades. The tax credits directly offset the expenses associated with installing eligible products and services, making it more affordable for homeowners to invest in energy-efficient solutions.
• Sustainability Benefits: In addition to cost savings, homeowners benefit from having a more sustainable and eco-friendly home. Energy-efficient upgrades not only lower energy consumption but also reduce greenhouse gas emissions, contributing to a greener and healthier environment.

By leveraging the EEHIC, homeowners can make significant strides in reducing their energy usage, lowering utility bills, and promoting sustainable living. It is recommended to consult with a tax professional or refer to IRS guidelines to ensure compliance with the program and to maximize the available tax credits.

Over time, HVAC systems naturally wear out, resulting in decreased performance and potential breakdowns. While concerns may arise about replacing a still-functioning older system, it’s essential to consider the long-term effects. Upgrading your HVAC system ensures optimal performance and reduces the risk of unexpected issues. Trust Service Champions to help you make informed decisions for a reliable and efficient HVAC system.

Here are several reasons to consider installing a new HVAC unit:

• Improved Performance: Upgrading to a new HVAC unit almost always results in improved output. Technological advancements, such as variable-speed motors, allow for optimal performance and better control over temperature regulation.
• Enhanced Temperature Control: Newer HVAC systems excel at maintaining precise temperature and humidity levels. They offer greater flexibility in creating customized schedules to meet your comfort needs.
• Quieter Operation: Older HVAC units tend to be noisier, regardless of their condition. In contrast, newer models are designed to minimize noise, providing quieter operation that goes almost unnoticed.
• Reduced Repair Needs: The longer you keep an old HVAC unit, the higher the likelihood of costly repairs. Newer systems are less prone to breakdowns, resulting in fewer repair expenses. Additionally, if you opt for an upgrade, you can have peace of mind knowing that the system is less likely to fail unexpectedly.
• Improved Energy Efficiency: Older units lose efficiency over time, leading to higher energy consumption and increased utility bills. Upgrading to a new HVAC unit allows you to benefit from the latest innovations and advancements in energy efficiency, leading to lower energy usage and cost savings.

Ensure the longevity and efficiency of your HVAC system with expert care. Our team of HVAC professionals offers comprehensive maintenance, repairs, and tune-ups to keep your system running smoothly. Trust us to provide the expertise and attention your HVAC system needs for optimal performance and comfort.

Please note: The information provided in this guide is for general informational purposes only and should not be considered tax advice. Consult a qualified tax advisor for personalized guidance based on your specific requirements.

To stay up-to-date with the latest tax credits and rebate programs, check out the following:

• Service Champions – Duct Sealing Tax Credits
• Service Champions – Heat Pump Tax Credits
• Service Champions – Ventilation Tax Credits
• Service Champions – Water Heater Tax Credits

Discover how Service Champions can help you maximize savings through the IRA with comprehensive information on tax credits and rebate programs. Our dedicated team is committed to assisting you in understanding and utilizing available incentives to their fullest potential. Click the button below to talk to us about your options.