Tax Credits: HVAC Upgrades That Qualify

Federal tax credits give you the opportunity to make HVAC and energy upgrades to your home to offset your tax liability. Three credits are available for solar applications that will lower your heating and cooling bills. Solar panels, some HVAC systems and water heaters qualify for the credits at the federal level.

Solar Panels

The federal program for solar has been extended for homeowners. The credit lets homeowners claim 30 percent of the total cost of the system and the installation, and there’s no limit on the amount they can claim. This offer and the amount of the credit are time-sensitive:

  • For installations that occur between 2018 to 2019, you can claim 30 percent.
  • You can claim 26 percent of the total cost of a solar system if it’s installed in 2020.
  • 2021 is the last year you can use the tax credits for a solar system. The amount drops to 22 percent of the total cost.

The credit applies to new and existing homes, as well as primary and second homes. It does not cover rental properties.

If you need to replace your HVAC system, the federal tax credit program gives you the option to replace it with a solar-ready air conditioner or heat pump. A heat pump supplies winter heating, as well as summer cooling.

Lennox’s SunSource systems use solar energy from panels as their first source, and rely on the grid secondarily. When they’re not running, the electricity will go to lights or appliances, or flow back to the grid, which lowers your energy bills. You an also store the energy in batteries to use at night.

Water Heaters

The 30 percent tax credit also applies to solar water heaters, as long as the appliance meets the Energy Star program’s specifications. Water heating ranks second after heating and cooling in terms of energy usage.

These tax credits allow you to offset the cost of solar equipment for your home. To learn more about upgrading to solar or the Lennox SunSource systems, contact Beyer Boys, providing HVAC services for San Antonio homeowners.

Our goal is to help educate our customers in the greater San Antonio, Texas area about energy and home comfort issues (specific to HVAC systems). 

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