Tax Credit

Four Seasons Air Specialists is pleased to inform our customers about the Energy Efficient Home Improvement Tax Credit (25C) program. This program was recently extended through 2022 and provides federal tax credits of up to $500 for installing high-efficiency equipment in your home.

Starting in 2023, the Energy Efficient Home Improvement Credit (25C) will increase the tax credit limits for high-efficiency equipment and will be available until 2032. Eligible equipment includes heat pumps, heat pump water heaters, and energy-efficient HVAC systems like furnaces, boilers, and central AC.

Under this program, there is an annual cap of $1,200 (except for heat pumps), with up to $600 for each qualified air conditioner or gas furnace and up to $2,000 for a qualified heat pump, heat pump water heater, or boiler.

This tax credit has no income requirements and cannot be combined with other federal programs. However, there is also a High-Efficiency Electric Home Rebate Program (HEEHRP) that offers additional benefits for households.

HEEHRP provides HVAC rebates up to $14,000 per household, including up to $8,000 for installing Energy Star® qualified heat pumps, up to $4,000 for electrical panel upgrades, up to $1,600 for home insulation and sealing, and up to $2,500 for home electrical wiring improvements.

Eligibility and the amount of the rebate depend on household income, with households below 80% of area median income qualifying for 100% of the system purchase price rebate. For households within 80% to 150% of the area median income, 50% of the system purchase price qualifies for the rebate. Households above 150% of the area median income do not qualify for the HEEHRP rebate.

The duration of the HEEHRP program will depend on the funds available within each state and the number of rebates distributed. Contact Four Seasons Air Specialists for more information on how you can take advantage of these programs to make your home more energy-efficient and save on your utility bills.

We are also monitoring HEEHRA and will let you know the guidelines when they are available.