Government Tax Incentives for Energy-Efficient HVAC Upgrades

Up to $2,000 in Federal Tax Credits on Qualified Equipment*

Thinking of upgrading your heating and cooling system? Now is an excellent time. Through the Inflation Reduction Act, eligible homeowners can access valuable federal tax credits by installing high-efficiency HVAC systems—including heat pumps, air conditioners, and furnaces.

At Brennan & Co., we offer a range of qualifying equipment designed to reduce energy use and improve home comfort—while helping you take advantage of these available incentives.

Learn more about these tax credits from the IRS and ENERGY STAR.

What Tax Credits Are Available?

Under the Energy Efficient Home Improvement Credit (26 U.S. Code § 25C), you may be eligible to receive up to $2,000 in tax credits for qualifying energy-efficient upgrades made to your primary residence.

Common eligible systems include:

  • Heat Pumps (air-source and ductless mini-split systems)
  • High-Efficiency Furnaces and Air Conditioners

Credit amounts:

  • Up to $2,000 for heat pump
  • Up to $600 each for qualified central air conditioners, furnaces, and other eligible improvements

These credits can be claimed annually and may be applied to new installations completed between January 1, 2023, and December 31, 2032, subject to annual limits.

Key Facts About the Tax Credits

No income limits

The Energy Efficient Home Improvement Credit is available to all eligible homeowners, regardless of income level.

Easy to claim

The credit can be claimed by filing IRS Form 5695 with your federal income tax return. Learn more from the IRS.

Primary residence only

The home must be your primary residence in the U.S. (vacation or rental homes do not qualify).

Installation by professionals required

Qualifying systems must be installed, not just purchased—and must meet efficiency standards set by the Department of Energy. Refer to the ENERGY STAR site for qualifying equipment guidelines.

Why Upgrade Now?

Replacing an aging HVAC system can be a significant investment—but thanks to federal incentives and long-term energy savings, the return on that investment is better than ever.

Benefits of upgrading with qualifying equipment:

  • Lower monthly utility costs
  • Reduced environmental impact
  • Increased home value and modern comfort
  • Up to $2,000 in tax credits
  • Long-term reliability and better air quality

We Install Qualifying Equipment

Brennan & Co. installs HVAC systems that meet or exceed the federal energy-efficiency standards required for tax credit eligibility. We stay up to date on the latest guidelines and can help guide you toward smart, eligible options that fit your home’s needs.

From heat pump installations to high-efficiency furnaces, we offer solutions that combine comfort, cost savings, and compliance.

Have Questions? We’re Here to Help.

If you’re planning an HVAC upgrade and want to take advantage of federal tax incentives, Brennan & Co. is here to walk you through the options. While we cannot provide specific tax advice, we can guide you to eligible equipment and help ensure your installation meets program requirements.