Save Money With AC Tax Credits & Rebates

As the push for sustainability gains momentum, more property owners are looking for ways to be eco-friendly. While solar panels might be the first green option that comes to mind, others give you more bang for your buck — such as energy-efficient air conditioners.

By investing in efficient AC systems, you can positively impact the environment and save on utility bills every month. Better yet, a high-quality air conditioner can even come with tax credits and rebates that provide additional savings for your green-conscious choice.

Current Air Conditioner Tax Credits and Incentives

Tax credits and incentives come in three ways for an air conditioner: through federal tax credits, state and local incentives, and manufacturer rebates. Read more about each one below.

Federal Tax Credits

The Energy Efficient Home Improvement Credit is a tax credit for homeowners who qualify for a credit of up to $3,200.

According to the IRS’s description, starting January 1st, the credit equals 30% of certain qualified expenses, including “energy efficiency improvements.” Your home must be in the United States, and it must be an existing home that you can improve or add to.

You can learn more about federal tax credits for your AC system by visiting this IRS guide or this ENERGY STAR® guide.

State and Local Incentives

Not only is the federal government interested in helping you, but often, your local and state governments are too.

This can vary drastically state by state and region by region, so take a look for yourself. This helpful tool by DSIRE allows you to look for relevant air conditioner incentives based on where you live.

A few minutes of looking for incentives can save you hundreds — if not thousands — of dollars.

Manufacturer Rebates

On top of credits at the governmental level, you can also enjoy rebates right from the manufacturer. A lot of manufacturers offer high-value rebates to encourage potential customers to choose their products.

Specific to air conditioners, manufacturers offer rebates to homeowners who purchase qualifying energy-efficient AC units. Typically, a rebate requires you to submit proof of purchase, which may come in the form of a check or prepaid check sent directly to you after your purchase.

If you’re thinking about making an air conditioning purchase for your home, browse this ENERGY STAR® tool that allows you to search for rebates based on your location. This can show you which companies offer qualifying AC systems.

Choosing an Energy-Efficient Air Conditioner

When choosing an AC system for your home, you want to choose one that is energy efficient because it’ll save you money every month, and only certain units qualify for tax credits.

Energy efficiency is determined by a SEER (Seasonal Energy Efficiency Ratio) rating. The higher the SEER rating, the more efficient the appliance is.

For instance, the equipment for a Central Air Conditioner Tax Credit needs a SEER rating higher than 16. Don’t hesitate to contact the manufacturer or an HVAC expert (like John Nugent & Sons) for the specific details of the system and credit you’re looking to use.

Other energy-efficiency factors include the Energy Star certification and the right sizing and installation. A good unit that isn’t installed correctly is essentially useless when it comes to efficiency and incentives. This is a major reason why most homeowners count on professional AC installation.

Steps To Claim Tax Credits and Incentives

When helping the environment (and yourself) with an efficient air conditioner, don’t forget to properly claim your tax credit and incentive. Otherwise, you’re just wasting money.

Here are the common steps to claim a credit or incentive:

• Provide proof of purchase
• Have a manufacturer certification confirming the unit’s energy efficiency
• And verify the installation complies with program requirements

Be sure to remember that the process can differ by federal credit, state and local incentives, and manufacturer rebates. Get in touch with either your accountant, the AC manufacturer, or the installer for more information.

Why Choose John Nugent & Sons?

Make the most of your home (and budget) with energy-efficient AC units.

And whether you need AC services or other HVAC help, look no further than the team at John Nugent & Sons. We’ve been delivering exceptional service and results to Virginia homeowners since 1975.

Get in touch online or over the phone at (703) 291-1926 to learn more or to request a personal project estimate.