Inflation Act

[Marygentempo]

Will I get a credit if I purchase a new air conditioner? My current one is 16 years old.

[Neil]

Hi Marygentempo!

If you purchase a qualifying air conditioner in 2022, you may be eligible for a tax credit of $300.  Please see link:

2022 Qualifying Air Conditioner Tax Credit 

To verify tax credit eligibility, obtain from your HVAC contractor the Manufacturer Certification Statement for the equipment you plan to purchase.  See link for more info:  Qualifying Air Conditioner Requirements 

Hope you stay cool!   

[KochuK]

Hi Marygentempo, thank you for the event question.

Inflation Reduction Act of 2022 (IRA 2022) signed into law on 8/16/2022. Hence terms used here are “Pre-IRA 2022” and “Post-IRA 2022.”

The IRA-2022 has provisions under "Energy Efficient Home Improvement Credit." It applies to property placed in service after 12/31/2022.

Under the sub category "Residential energy property expenditures", it includes "a central air conditioner."

Please see Internal Revenue Code 25C, it has no further explanation of "a central air conditioner."

Recommend that you check with an appliance retailer for further details.

The credit can be 30% of your cost paid or incurred in 2023, up to a limit of $600 per year.

Hope the above helps.