Credit for installing Central HVAC in 2023

I installed a Central HVAC with a fairly high SEER. It was multi-stage unit that varies the compressor. I also installed a high efficiency gas heater. The instructions on TTax are not real clear if I might qualify for the credit and what models may qualify. It is definitely not a heat pump. The cost for the HVAC, heater and labor was around $17,000.

Is it worth the audit risk to try to claim the credit? Or what SEER do I need to qualify?

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1 Best answer

Expert Alumni

Mar 26, 2024 7:20:36 AM

If it is not a split system, and it is energy star certified, it is eligible for the credit.

These would be 2 separate credits, one for the AC which is a $600 credit and another $600 for the gas.

The Home Improvement Energy Efficient Credit is a non-refundable credit

Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
- Doors, Windows and Skylights
- Insulation
- Natural Gas, Oil Propane Water Heaters
- Furnaces
- Boilers
- Central Air Conditioners ($600 maximum Credit)
- Electrical Panel Upgrades
- Home Energy Audit (up to $150)
This credit is a use it or lose it credit. If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.
NOT available for new construction.