SAVE MONEY with HVAC Tax Credits! - Ernst Heating & Cooling

SAVE MONEY with HVAC Tax Credits!

An illustration of various tax related imagery

Federal tax credits are here to reward you for your HVAC system and other high-efficiency products! Do YOU qualify?


For a little while, we here at Ernst weren’t sure whether the tax credits were going to be extended or not! Every year, it isn’t 100% certain that these tax credits are going to continue — which is why we think it’s a great idea to hurry and get them while you can. Now more than ever is a time when people are looking to get a little extra money back!

How to get your HVAC tax credits

When filing your return, you will fill out a form (we know, another form, but this time we’re helping you get money back!). Form 5695. When it comes to detailed instructions on filling this out, please do consult a tax professional.

When it comes to determining which credits you qualify for, you may want to consult your tech, if you are not sure if your equipment meets the following standards:

  • Air conditioners
    The SEER (Seasonal Energy Efficiency Ratio) must be greater than or equal to 16 for a split system. The SEER must be greater than or equal to 14 for a package system. This figure is obtained from total cooling output, divided by energy measured in watt-hours.

    Tax credit amount = $300

  • Gas furnaces
    The AFUE (Annual Fuel Utilization Efficiency) must be greater than or equal to 95, referring to the percent efficiency in converting total fuel to energy.

    Tax credit amount = $150

  • Water heater (gas)
    A UEF (Uniform Energy Factor) of greater than or equal to 0.82 — this is one way the requirement can be met. This is a system of measurement that evaluates water heater efficiency / performance based upon how many hot gallons of water it can get in one hour.
    A thermal efficiency of at least 90% — this is another way the requirement can be met.

    Tax credit amount = $300

  • Insulation
    Not just blown-in or foam insulation, but also weatherstripping, caulking, and house wrapping count as insulation.

    Tax credit = 10% of cost, up to $500
  • Roof

    A metal or asphalt roof installed counts as an energy-efficient upgrade worthy of a tax credit, because it prevents your house from absorbing heat.

    Tax credit = 10% of cost, up to $500

  • Windows and doors

    If ENERGY-STAR-approved windows, doors, or skylights are installed in your home, you may qualify for a tax credit.

    Windows tax credit = 10% of cost, up to $200
    Doors/skylights tax credit = 10% of cost, up to $500

Time window

Speaking of windows, we need to mention the time window here: in order to qualify, your improvements must have taken place AFTER 2017 and BEFORE 2021. So if you installed a new HVAC system, for example, and you’d like to get a tax credit for it, the installation must have taken place between those dates!

Any questions?

If you have more questions about the tax credits, we do recommend that you consult a tax professional, because we at Ernst are the HVAC experts, not the tax experts! But if you need help determining whether your system qualifies, OR if you need HVAC repair in the Hamel area, all you have to do is contact us online or call us: 618.217.1836!


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