Is your Air Conditioner or Heat Pump Eligible for a Federal Tax Credit under the Inflation Reduction Act?
On January 1, 2023, new Federal Tax Credits went into effect under the provisions set forth in the Inflation Reduction Act. The credits cover a wide array of energy efficient home improvements, including air conditioners and heat pumps, as well as other upgrades like insulation, doors, water heaters, etc. These credits can be claimed annually from 2023 through 2032.
While you can ask the professionals at Southern Heating, Cooling & Plumbing about equipment eligibility, we are not tax experts. We highly recommend that you consult your tax professional to ensure that you meet all the requirements necessary to receive tax credits for your air conditioner or heat pump purchase.
Air Conditioner & Heat Pump Tax Credit Details
Central Air Conditioners:
- Claim 30% of the project cost, up to a $600 maximum credit.
- The air conditioner must meet the following efficiency requirements:
- Split Systems: ENERGY STAR certified* equipment with SEER2 ≥ 16
- Packaged Systems: ENERGY STAR certified equipment with SEER2 ≥ 15.2, EER2 ≥ 11.5 (including gas/electric package units)
Air Source Heat Pumps:
- Claim 30% of the project cost, up to a $2,000 maximum credit.
- The heat pump system must meet the following efficiency requirements:
- Ducted Split Systems: ENERGY STAR certified equipment with HSPF ≥ 7.8, SEER2 ≥ 15.2, EER2 ≥11.7
- Packaged Systems: ENERGY STAR certified equipment with SEER2 ≥ 15.2, EER2 ≥ 11.5
- Ductless Mini-Split/Ductless Systems: ENERGY STAR certified equipment with SEER2 ≥ 16, EER2 ≥ 12, HSPF2 ≥9.
We offer a variety of 2-speed & variable speed systems that meet the above requirements.
Fore more information on the Inflation Reduction Act 2023, please visit https://www.energystar.gov/about/federal_tax_credits
