The Inflation Reduction Act, which went into effect on January 1, 2023, has provided homeowners the opportunity to benefit from a tax credit of up to $2,000 for heat pumps and $600 for air conditioners. In this blog, we will explore the requirements, eligible HVAC systems, and how to take advantage of these tax credits in Cape Coral, Florida.
Tax Credit Eligibility for HVAC Systems
In order to qualify for the tax credit, both the property and the new AC unit or heat pump must meet specific eligibility requirements. The new equipment must be installed after January 1, 2023, and before December 31, 2032, at your principal (primary) residence. New construction homes and rental properties do not qualify under the provisions of the Inflation Reduction Act. However, both single-family and multi-family homes, condos, mobile homes, co-ops, patio homes, and even houseboats are eligible, so long as it’s your primary residence.
Qualifying AC Units and Heat Pumps
Not all new AC units or heat pumps qualify for the HVAC tax credit. It is crucial to consult with a local air conditioning and heating company in Cape Coral, Florida, such as Tundra Air, to determine which models meet eligibility requirements. Our Project Managers are well-informed about the models that qualify and can answer any questions you may have.
Eligibility Requirements and Maximum Tax Credit by Equipment Type
Heat Pumps: Up to $2,000 Tax Credit
Air Source Heat Pumps, which are commonly installed in Florida homes, are eligible for a tax credit. Homeowners can claim 30% of the total project cost, with a maximum credit of $2,000. The installed heat pumps must meet or exceed specific efficiency ratings and be Energy Star certified.
Central Air Conditioners: Up to $600 Tax Credit
Central air conditioners, including electric air conditioners with gas heat or electric strip heat, are eligible for a tax credit. Homeowners can claim 30% of the total project cost, with a maximum credit of $600. The installed air conditioners must meet or exceed specific efficiency ratings and be Energy Star certified.
HVAC Tax Credit Quick Reference Chart for South Region (including Florida)
Tax Credit | Equipment | Type | SEER2 | EER2 | HSPF2
Up to $2000
Heat Pump
Split HP | 15.2 | 11.7 | 7.8
Ductless HP | 16.0 | 12.0 | 9.0
Packaged HP | 15.2 | 10.6 | 7.2
Up to $600
Air Conditioner
Split AC | 16.0 | 12.0 | N/A
Packaged AC | 15.20 | 11.50 | N/A
Understanding Air Conditioner Efficiency Standards
Efficiency standards for air conditioners have changed as of January 1, 2023. To learn more about these changes and how they apply to the South Region, including Florida, read our article on Air Conditioner Efficiency Standards. The article includes a helpful chart showing the former efficiency standard and the new standard for 2023.
Conclusion
Take advantage of the Inflation Reduction Act and upgrade your HVAC system in 2023 to benefit from up to a $2,000 tax credit for heat pumps or a $600 tax credit for air conditioners. Consult with a local HVAC company in Cape Coral, Florida, like Tundra Air.
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