How Homeowners Can Save Big Using HVAC Tax Credits

Homeowners can save big while upgrading to high-efficiency 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 Minneapolis, but the equipment upgrades help minimize monthly energy costs going forward.

In this blog, the professionals at HomeSmart will walk you through details of the  HVAC tax credit, show you what types of heating and cooling systems are eligible for a tax credit and why you should act now to claim the credits before they expire on December 31, 2025.

What is the Energy Efficient Home Improvement Credit for Heating and Cooling Equipment?

The federal tax credit for installing new HVAC equipment is a smart way to save when installing a new HVAC heating and cooling system in your primary residence. You can get up to 30% reimbursed on eligible costs for eligible HVAC equipment installed between 2023 and 2025.

There are some limits and requirements—for example, you can only get a maximum of $2,000 per year for some systems—and you’ll need to submit IRS Form 5695 to claim it on your tax return. Units must also satisfy efficiency standards to qualify. The credit ends on Dec. 31, 2025, so homeowners interested in upgrading should move quickly while it’s still available.

Which Systems Qualify for an HVAC Tax Credit in Minneapolis 

Looking to replace your heating and cooling equipment, but not sure 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 plenty of choices when it comes to lowering expenses. This credit makes it easier to save on both installing quality HVAC equipment and energy expenses.

Here are some of the frequently installed types of HVAC equipment that qualifies for an Energy Efficient Home Improvement tax credit:

• Central AC: Qualifying central air conditioning units qualify for a HVAC tax credit of as much as $600. Installing an energy-efficient air conditioning system in your Minneapolis home can make your home more comfortable and lower energy use during summer.
• Water heaters: Qualifying energy-efficient electric or gas water heaters can earn homeowners an Energy Efficient Home Improvement tax credit of up to $600. These systems operate more efficiently while providing reliable hot water throughout the home.
• Furnaces: Natural gas, propane or oil furnaces that meet efficiency guidelines are eligible for an Energy Efficient Home Improvement Tax Credit of up to $600. Professional furnace installation can increase comfort and lower your cold-season energy bills.
• Heat pumps: Heat pumps are among the highest-efficiency HVAC systems and can earn a tax credit of up to $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 Minneapolis 

Your journey to claiming the federal HVAC tax credit in Minneapolis begins by calling the pros at HomeSmart. Our Comfort Advisors will walk you through how the  HVAC tax credit can benefit your home, how much you can get back and guide you in selecting qualifying HVAC systems. Then, we’ll handle expert HVAC installation for reliable efficiency and comfort.  

Contact us online or by phoning 866-837-9762 today to start cutting costs on energy-efficient upgrades!