How to Get Up to $2,500 in Tax Rebates on a New HVAC System
Upgrading your HVAC system doesn’t have to come with sticker shock. Thanks to federal tax rebates under the Inflation Reduction Act, homeowners can save thousands of dollars on energy-efficient heating and cooling equipment.
At Just Fix It, we’re helping homeowners across Texas take advantage of these rebates – up to $2,500 in tax credits – while lowering long-term energy costs. Here’s how it works.
What Are the 2025 HVAC Tax Rebates?
The Energy Efficient Home Improvement Credit (25C) allows homeowners to claim 30% of the total cost of qualifying HVAC installations, up to certain limits. This tax credit is not a deduction – it directly reduces the taxes you owe.
You may be eligible for:
- Central Air Conditioners: Up to $600 (30% of cost)
- Gas Furnaces: Up to $600 (30% of cost)
- Air Source Heat Pumps: Up to $2,000 (30% of the cost)
- Geothermal Heat Pumps: 30% of total cost, with no cap
These incentives apply to primary residences only and are available annually through 2025.
Which HVAC Systems Qualify?
To receive these HVAC rebates, your system must meet specific energy efficiency standards outlined by the ENERGY STAR program.
Central Air Conditioners
- Must be ENERGY STAR certified
- At least 16 SEER2 and 12 EER2 ratings
Gas Furnaces
- ENERGY STAR certified
- 97% AFUE or higher
Heat Pumps (Ducted or Ductless)
- Must be ENERGY STAR certified
- 15.2 SEER2 or higher for most systems
- Heat pumps provide the highest residential HVAC tax credit, up to $2,000
Before installation, verify that the specific make and model you’re considering meets all qualifications. Your HVAC contractor can help with this by providing the AHRI certificate number – a key part of your paperwork when filing.
How To Claim HVAC Tax Credits on Your Return
To claim your rebate, you’ll need to:
- Confirm eligibility before purchasing
- Collect your documentation:
- Invoices or receipts
- AHRI certification
- Manufacturer’s efficiency rating info
- Fill out IRS Form 5695 when filing your tax return
- Keep all paperwork with your tax records
The IRS Form 5695 (Residential Energy Credits) calculates the amount of credit you can claim based on what you spent on qualified equipment and installation.
Why It Pays to Act Now
The Inflation Reduction Act authorizes these HVAC tax credits through 2025, but there’s no guarantee they’ll be extended. That means now is the ideal time to upgrade your heating and cooling system – especially as energy prices continue to rise.
In many cases, state rebates and local utility programs can be stacked with the federal tax credit, giving you even more savings. These programs are first-come, first-served and sometimes run out mid-year, so early action gives you the best shot at maximum rebates.
Let Just Fix It Help You Maximize Your Savings
Understanding HVAC rebate eligibility can feel overwhelming, but that’s where we come in. At Just Fix It, we keep track of all available rebate programs and help you choose the most efficient, cost-effective system for your home.
Whether you’re interested in replacing your AC or upgrading to a high-efficiency heat pump, we’ll make sure you don’t leave money on the table. Call us today at 281-617-2231 (Houston) or 817-527-5881 (DFW) to learn more about your rebate options and get a quote for a qualifying HVAC installation.