Atlanta Air Authority

Understanding 2023 Federal Tax Credits for HVAC Equipment

Disclaimer: The following information is provided for educational purposes only and should not be considered financial advice. Atlanta Air Authority is not a financial advisor, and this blog post is based on our understanding of the 2023 Federal Tax Credits as explained to us. Tax laws and incentives can vary, and individuals should consult with a qualified tax professional for personalized advice.

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As we delve into the new year, it’s essential for homeowners and businesses alike to be aware of the available tax incentives related to HVAC equipment. The federal government offers tax credits as an incentive to encourage energy efficiency upgrades, including those related to heating, ventilation, and air conditioning (HVAC) systems. These credits not only benefit your wallet but also contribute to a more sustainable and environmentally friendly future.

What are Federal Tax Credits?

Federal tax credits are incentives provided by the government to encourage energy-efficient upgrades to residential and commercial properties. These credits allow taxpayers to subtract the credit amount directly from the taxes owed, potentially leading to significant savings.

2023 Tax Credit Details

1. Residential Energy Efficiency Property Credit (IRC Section 25D):

  • This credit applies to qualifying residential energy property expenditures, including solar electric property, solar water heating property, small wind energy property, geothermal heat pump property, and fuel cell property.
  • For the tax year 2023, the credit rate for residential energy-efficient property is up to 26% of the cost.
  • The maximum credit amount varies by property type and is subject to specific dollar limitations.

2. Nonbusiness Energy Property Credit (IRC Section 25C):

  • This credit applies to qualified energy efficiency improvements made to existing homes.
  • Examples of qualifying improvements include energy-efficient windows and doors, insulation, efficient heating and air conditioning systems, and more.
  • The credit is 10% of the cost of qualified energy efficiency improvements, up to a maximum credit of $500.

Qualifying Equipment

It’s important to note that for HVAC equipment to qualify for these tax credits and rebates, it must meet certain efficiency criteria. Generally, equipment with a Seasonal Energy Efficiency Ratio (SEER) of 16 or higher qualifies. Always consult with your tax preparer or accountant to ensure eligibility and proper documentation.

Why Take Advantage of These Credits?

  • Financial Savings: Lower your tax liability and enjoy savings on your energy bills with more efficient HVAC systems.
  • Environmental Impact: Energy-efficient upgrades reduce your carbon footprint, contributing to a greener planet.
  • Enhanced Comfort: Upgraded HVAC systems often provide better comfort and indoor air quality for your home or business.

How to Claim the Credits

To claim these tax credits, taxpayers must file the appropriate forms with their federal income tax returns. It’s crucial to keep records of all expenses and receipts related to the energy-efficient improvements. Consult with your tax advisor or accountant to ensure proper documentation and eligibility.

Atlanta Air Authority Can Help

At Atlanta Air Authority, we understand the importance of energy efficiency and the benefits of upgrading HVAC systems. The paid invoice should apply as your receipt and you will need an AHRI number, we can get this number for you if your system has an AHRI number applied to it. If you were not told before hand that your system has an AHRI number then there may not be one. Not all systems have an AHRI number and not all systems qualify.


As we navigate the year ahead, let’s take advantage of the available federal tax credits for HVAC equipment. These incentives not only benefit our finances but also contribute to a more sustainable future. Remember, only HVAC equipment with a SEER of 16 or higher qualifies for rebates. Consult with your tax preparer to ensure eligibility. Contact Atlanta Air Authority today to explore energy-efficient HVAC solutions and maximize your savings while enhancing comfort and efficiency in your home or business.

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