Get up to $2000 tax credit on select AC systems! Call now to learn more.

Get up to $2000 tax credit on select AC systems! Call now to learn more.

Get up to $2000 tax credit on select AC systems! Call now to learn more.

2024 Tax Credit for HVAC Systems and Home Improvement Energy Efficient Upgrades


The Inflation Reduction Act (IRA) of 2022 allocates funding for federal programs aimed at providing tax credits and rebates to incentivize the installation of new or upgraded HVAC equipment. While the primary focus lies on offering substantial rebates for households upgrading their heating & cooling system, there are also provisions catering to various other HVAC-related enhancements and home upgrades. Improvements such as insulation, air sealing, and upgrades to electrical circuit boxes and wiring may also be considered qualifying enhancements, offering additional chances for eligibility.

The IRA leverages the established Energy Efficient Home Improvement Credit program to facilitate HVAC upgrades. Under this program, Florida homeowners can claim a tax credit amounting to 30% of the total cost on eligible HVAC equipment, with certain restrictions and limitations. This initiative serves as a significant incentive for individuals aiming to enhance their home's energy efficiency through HVAC system upgrades, contributing to both cost savings and environmental sustainability.

Qualifying Equipment & Services and Credit Limits


  • Central Air Conditioning Systems: $600

  • Heat Pumps: $2,000

  • Natural Gas Water Heaters & Furnaces: $600

  • Biomass Stoves and Boilers: $2,000

  • Electrical Panels and Related Equipment: $600

  • Insulation and Air Sealing: $1,200

Who is Eligible for the HVAC Tax Credits?

To qualify for the energy-efficient home improvement tax credit, the improvements must be made on your primary residence, which is typically where you reside for the majority of the year.


Criteria for eligibility

  • Location: The home must be located within the United States

  • Existing Home: The tax credit applies to improvements made to an existing home, not to new constructions or properties

  • Primary Residence: In most cases, the home must serve as your primary residence, where you live for the majority of the year. Landlords or property owners who do not live in the home as their primary residence are not eligible to claim the credit

Important Items to Know About the Tax Credits

  • The program is effective from January 1, 2023, through December 31, 2032.

  • The tax credit encompasses both the cost of the equipment and its installation.

  • There's an annual cap of $1,200 for all eligible home improvement projects, which includes HVAC upgrades.

  • You can claim the credit on your federal tax return

By meeting these criteria, Florida homeowners can qualify for the energy-efficient home improvement tax credit when enhancing their home's cooling systems or implementing other qualifying improvements to their primary residence. If you're contemplating a new AC system or heat pump for your home, or are considering air duct sealing, insulation, or other equipment that might apply, Cool Today is here to answer your questions and recommend the best options tailored to your home and specific needs. 

Schedule an appointment with us to discuss your HVAC upgrade options and eligibility for tax credits.


Please note that the content presented in this article is intended for general informational purposes only. Specific details regarding the tax credits can be found here: https://www.irs.gov/credits-and-deductions-under-the-inflation-reduction-act-of-2022

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