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What HVAC System Qualifies for Tax Credit 2024?

What HVAC System Qualifies for Tax Credit 2024?

What HVAC System Qualifies for Tax Credit 2024? So…What HVAC System Qualifies for Tax Credit 2024? As a homeowner in Mesa, Arizona, I find it necessary to keep up with the latest energy-efficient technologies and tax incentives available for home heating and cooling. You may be wondering why, but in truth, we all want to save money in the long run. And with a yearly increase in energy costs, investing in an energy-efficient HVAC system is the best thing to do right now.

In fact, homeowners now have the chance to gain tax incentives when they opt for an energy-efficient HVAC model. But, how is this even possible?

In this article, we’ll explore the details of these tax credits and help you understand which HVAC systems qualify for the 2024 tax year. Read on

What Law Backed Up HVAC System Tax Credit?

In the year 2022, precisely on August 16, President Biden signed into law an act called the “The Inflation Reduction Act”. This, in fact, is more of a comprehensive legislation with the sole purpose of addressing climate change, energy security, and healthcare costs. A key interesting part of the act is the promotion of clean energy and energy efficiency through various tax incentives and rebates. Most importantly, the act is an added advantage for homeowners who invest in energy-efficient HVAC systems. For one thing, it provides significant energy tax credits, making it more affordable to upgrade to environmentally friendly options.

To many who are yet to know this, the energy tax credits are financial incentives provided by the federal government to encourage individuals and businesses to invest in energy-efficient products and technologies. From what it’s worth, these tax credits allow you to deduct a portion of the cost of qualifying HVAC systems from your federal income tax liability. In short, you can easily offset the upfront costs of upgrading to a more energy-efficient HVAC system, making it a more financially viable option.

What are the latest Energy Efficiency Standards for HVAC Units?

What HVAC System Qualifies for Tax Credit 2024?To qualify for the tax credit, there are established updated energy efficiency standards for HVAC systems.  These standards are based on the energy efficiency ratio (EER) for air conditioners and seasonal energy efficiency ratio (SEER) for heat pumps.

As a matter of fact, it is of utmost importance to know the updated standards because they determine which HVAC systems are eligible for tax credits. With it, homeowners can easily make good decisions in the process of selecting an energy-efficient heating and cooling unit that meets the requirements for tax credits. Lets take a look at some of the standards below

What HVAC Systems Are Eligible For Tax Credit?


Air-source heat pumps that meet the highest efficiency requirements are eligible for a tax credit of up to $2,000. To qualify, the heat pump must have a SEER rating of at least 15 and an EER rating of at least 12.5.


If you’re looking to replace your outdated central air conditioning system, you may be eligible for a tax credit if the new unit meets certain energy efficiency requirements. Specifically, Homeowners can claim a tax credit of up to $600 for installing a new central air conditioning system. However, the new air conditioner must have a Seasonal Energy Efficiency Ratio (SEER) of 16 or higher and an Energy Efficiency Ratio (EER) of 13 or higher to qualify.


Energy-efficient boilers qualify for a tax credit of up to $600. To be eligible, the boiler must have an annual fuel utilization efficiency (AFUE) rating of at least 87%.


If you’re in the market for a new gas furnace, you may be able to claim a tax credit of up to $600 if the unit meets certain efficiency criteria. Qualifying gas furnaces must have an Annual Fuel Utilization Efficiency (AFUE) of 95% or higher.


In addition to the systems mentioned above, certain other HVAC components may also be eligible for tax credits. These include advanced main air circulating fans, energy-efficient water heaters, and biomass stoves. For instance, biomass fuel stoves with an efficiency rating of at least 75% can qualify for a tax credit of up to $600.

How Can Homeowners Know The Type of HVAC System that qualifies for tax credit?

To determine if your HVAC system qualifies for the tax credit, you’ll need to check the energy efficiency ratings provided by the manufacturer. Look for the SEER, EER, and AFUE ratings, and compare them to the minimum requirements outlined by the federal government. Additionally, you can consult with a professional HVAC contractor or visit the ENERGY STAR website for a list of qualified products.


If you’re considering upgrading your HVAC system, now is the perfect time to take advantage of the federal tax credits that are available. At 365 Mechanical, we are a top-rated AC repair and installation service provider in Mesa, AZ. Our team of experts can guide you through the process of selecting an energy-efficient HVAC system that meets the qualifications for tax credits. Contact us today to schedule a consultation and start saving money while reducing your environmental impact.

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