Tax Credits and Financial Incentives for HVAC Improvements
So in review, what’s the answer? Can you write off a new HVAC system on your taxes? Most likely not. As noted above, the Nonbusiness Energy Property Tax Credit, which would have allowed a substantial deduction for the installation of a traditional heating or air conditioning system, has expired. If, however, you installed certain next-generation climate control equipment, you may qualify for the Residential Energy Credit (Form 5695).
Upon installation or upgrade of any part of your heating, ventilation and air conditioning system, or any related insulation and energy efficiency improvements, always be on the lookout for potential tax credits, rebates and other financial incentives. You may find rebates such as $225-1500 on energy-efficient washing machines, $25-125 on smart thermostats and $100-200 on certain water heaters.
*Disclaimer: The tax credit information contained within this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS).