Tax Credits & Rebates
Learn about options available for you to save on a new HVAC system, including new incentives from the Inflation Reduction Act (IRA).
Inflation Reduction Act Homeowner Incentives
In August 2022, the Inflation Reduction Act (IRA) made a groundbreaking commitment of approximately $370 billion to bolster climate and energy initiatives. This progressive act introduces enticing incentives for homeowners who invest in eligible, high-efficiency HVAC systems. This means homeowners upgrading their HVAC systems may not only save on energy costs, but also can earn tax credits and rebates.
For eligible equipment installed after Jan. 1, 2023
If you installed/will install eligible HVAC equipment between January 1, 2023, and December 31, 2032, you may be eligible for tax credits up to 30% of installation costs (up to $1,200/year) under the expanded Energy-Efficient Home Improvement Tax Credit 25C program. Other changes to the 25C tax credit include:
- Up to $2,000 for qualified heat pumps
- Up to $600 for qualified air conditioners
- Up to $600 for qualified furnaces
- Up to $600 for electrical upgrades to enable heat pump installation
Please note: The maximum 25C tax credit amount is $3,200 when a qualifying heat pump is included in the purchase.
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How do I apply for a tax credit?
As per IRS regulations, these tax credits directly reduce the amount of taxes owed. To calculate and file for residential energy credits, the IRS recommends using Form 5695. For personalized guidance on applying for tax credits and tax preparation, it is advisable to consult with a tax professional.
What are rebate programs?
Rebate programs differ by state and income level. To discover rebate programs that you may qualify for, we recommend speaking with a local representative from your state's energy office. Increase your HVAC savings further by exploring rebate programs provided by state programs and local utilities.
Manufacturer Certificates
See below for the Ameristar residential products that qualify for a tax credit. Save these certificates for tax season and utilize them when you file your federal taxes.
Split system heat pump
To be eligible for 2023 tax credits, you must meet all three 25C requirements of 15 SEER/12.5 EER/8.5 HSPF.
- Split system in the south: 15.2 SEER2, 12.0 EER2, 7.8 HSPF2
- Split or packaged system in the north : 15.2 SEER2, 10.0 EER2, 8.1HSPF2, COP of 1.75 at 5F and heating capacity ratio >58% at 17°F/47°F or >70% at 5°F/47°F
Split system air conditioner
To be eligible for 2023 tax credits, you must meet both the 25C requirements of 16 SEER/12 EER.
To learn more about qualifying products and government energy-efficiency standards, visit the Federal Tax Credit page on the official Energy Star website.