HVAC Tax Credits: Are You Eligible?

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Have you been thinking about making energy-saving upgrades to your home heating and cooling systems? Are you still kicking yourself that you missed out on the federal tax credits for such upgrades that were available a few years ago? Though they apply to fewer products than before, the federal energy tax credit program for consumer energy efficiency is back for qualifying upgrades made through Dec. 31, 2016.

This season’s tax credits are a little easier to qualify for than were previous programs. For instance, new construction as well as existing homes qualify for eligible in 2015. Qualifying energy upgrades to both a primary residence and a secondary residence are also eligible. Upgrades to rental properties still do not qualify.

2014 HVAC Tax Rebates and Federal Tax Credits

The 2015 federal HVAC tax credits apply to qualifying items in the following categories:  (Keep in mind that not all products qualify; a good HVAC contractor can help you find the best system to meet your needs and qualify for the tax credit).

  • Geothermal heat pumps
  • Small wind turbines (residential)
  • Solar energy systems

Homeowners who purchase these systems and have them installed by the end of 2016 receive a tax credit equal to 30 percent of the cost of the product and the installation (with no upper limit).

Applying for these HVAC tax credits is easy. You simply complete IRS form 5695 when you file your 2015 taxes. The credit will be automatically deducted from your tax obligation or added to your refund.

Maryland and DC HVAC Tax Credits

Both the State of Maryland and the District of Columbia offer additional savings programs for area homeowners. Through the EMPOWER program, Maryland homeowners can save up to 50 percent on qualifying energy-saving home improvements. DC homeowners can receive a property tax credit of up to 100 percent of the cost of purchasing and installing qualifying solar energy systems to their primary residence via the District’s Solar Initiative program. Again, not all products qualify for these incentives. It’s best to consult your HVAC contractor.

Both of these regional programs may be combined with the federal energy tax credit program.

High-Efficiency HVAC Installation in DC & Maryland

To learn more about how federal and local tax credits can help make upgrading your home’s HVAC systems more affordable, call Michael Bonsby HVAC & Plumbing at 301 990-7970. We’re been helping Maryland and DC area homeowners with their heating and cooling needs for more than a decade and can recommend and install a high-efficiency system for you.

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