​Exciting HVAC Incentives for Homeowners!
Ready to support the environment while tapping into lower energy bills? Thanks to the Inflation Reduction Act (IRA), investing in an energy-efficient HVAC system is more affordable than ever. This act allocates nearly $370 billion to climate and energy programs, and homeowners who invest in eligible HVAC systems may qualify for incentives that benefit both their wallet and the planet.

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What is a rebate?
Rebates vary based on your location. They offer a way to save money by encouraging you to make greener energy choices for your HVAC system. Find a rebate by entering your zip code. Then, apply it via your local power provider.

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What is a tax credit?
You may qualify for federal tax credits when you add certain energy-saving options to your lifestyle. Some American Standard Heating and Air Conditioning systems qualify and can help you save money with these tax credits.

 

Homeowners who install a qualifying HVAC system:
Homeowners who install a qualifying HVAC system between January 1, 2023 and December 31, 2032 may be eligible for higher incentives under the expanded Energy Efficient Home Improvement Tax Credit (25C). The program provides a tax credit of up to 30% of installation costs (up to $1,200/year) for qualified products:

• 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
   

*The maximum 25C tax credit amount is $3,200 when a qualifying heat pump is included in the purchase.
*Some states and locations may offer additional tax incentives, rebates, or credits for investing in energy-efficient HVAC, depending upon income and other factors.

Rebate programs related to energy efficiency
Rebate programs may already exist in your state or become available through your state energy offices as a result of the Inflation Reduction Act guidance for rebate programs. Review the EcoRebates search tool at the top of this page to see what rebates are available in your area.

Please note: The rebate programs vary from state to state and can differ depending on your income.

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How do I apply for the Energy Efficient Home Improvement Tax Credit (25C)?
Apply in 3 easy steps! Tax credits directly reduce taxes you owe and are regulated by the IRS.
1. Download the manufacturer certificate for your system. Keep this for your records.
2. Talk with a tax professional about how you can make the most out of your energy tax credits.
3. File Form 5695 as part of your yearly federal tax returns. Learn more about filing the form.

FAQs

What steps do I take to submit a rebate?
Use the special offers tool on this page to search for a local rebate. Enter your zip code then find your unit. If you find a local rebate for your unit, select the “Get Form” button to download a form to fill out. Last, submit the completed form to your local utility provider for approval.

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What federal tax credits can I earn for residential energy?
IRS code 25C, known as the Non-Business Energy Property Tax Credit, initially offered tax credits for certain energy efficient home improvements from 2018 through the end of 2021, and was extended through the end of 2022 via the Inflation Reduction Act. This tax credit takes new form in 2023, offering even more savings under the new title Energy Efficient Home Tax Credit, and isn’t set to expire until 2032.

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How can I qualify for a federal energy tax credit? Should I be aware of any limitations?
Beginning in 2023, the expanded version of 25C allows homeowners to claim 30% of the costs of energy efficient upgrades, up to an annual (not lifetime) limit of $1,200. This credit is not set to expire until 2032. Other individual credit limitations include:

• $150 annual limit for home energy audits

• $600 annual limit for certain qualifying air conditioners and furnaces

• $2,000 annual limit for certain qualifying heat pumps (the one exception to the $1,200 limit)
   

Note that these are nonrefundable energy credits, which means you can use them to lower how much tax you owe, but not to a value below zero.

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How can I learn more about residential energy tax credits?
Contact a tax professional to discuss additional questions you may have! Or, check out Energystar.gov for information about any recent changes to tax credits.