The Protecting Americans from Tax Hikes Act of 2015 retroactively renewed the federal tax credit for homeowners who installed qualified high-efficiency, energy-saving products in their primary residence between January 1, 2015 and December 31, 2016. Any qualified cooling and heating system installed in 2015 or 2016 for a primary residence is eligible for this credit, subject to IRS regulations. If you’ve already claimed the maximum total tax credit of $500 for purchases made in any previous year, you are ineligible for additional tax credits for any new HVAC equipment purchases.
An eligible taxpayer may claim up to $300 in tax credits, subject to IRS limits based on the type of HVAC equipment installed, including:
- Up to 10% of installed costs ($300 limit) for central split-system air conditioners meeting or exceeding 16 SEER and 13 EER.
- Up to 10% of installed costs ($300 limit) for split-system air-source heat pumps meeting or exceeding 15 SEER, 12.5 EER and 8.5 HSPF.
If you are eligible to claim credit for qualified HVAC equipment, you should obtain a copy of the equipment manufacturer’s certificate as part of your taxpayer’s records, along with your receipt of purchase and installation. Please consult your professional tax advisor to determine what qualifies for a tax credit in your individual situation.
