What HVAC equipment qualifies for the 2024 tax credit
The federal energy tax credit for 2024 covers certain heat pumps and HVAC equipment installed in your primary residence. The credit applies to air-source heat pumps, ground-source heat pumps, and central air conditioners that meet Department of Energy efficiency standards. You can claim up to $2,000 for a heat pump or $600 for a central air conditioner on your 2024 tax return, though the total credit across all home energy improvements cannot exceed $3,200 in a single year.
The equipment must be new, installed between January 1 and December 31, 2024, and placed in service in your home during that same year. Replacement of an existing system counts; new construction does not. The manufacturer must certify that the unit meets the required efficiency ratings, which your contractor should confirm before installation.
Furnaces, boilers, and ductless mini-split systems do not currently may have access to under the 2024 credit, though mini-splits may be may be able to access under separate heat pump rules depending on how they are classified. Window air conditioners and portable units are not covered.
Key Takeaways
- Air-source heat pumps may have access to for up to $2,000 and ground-source heat pumps for up to $2,000; central air conditioners may have access to for up to $600.
- The equipment must be installed and placed in service between January 1 and December 31, 2024, in your primary residence.
- The manufacturer must certify that the unit meets Department of Energy efficiency standards; ask your contractor for this documentation before installation.
- You can claim only one credit per type of equipment per year, and your total home energy credits cannot exceed $3,200 in 2024.
- You claim the credit on Form 5695 when you file your 2024 tax return; you do not receive it upfront at the time of installation.
Efficiency ratings your HVAC system must meet
The Department of Energy sets specific efficiency thresholds that your equipment must reach. For air-source heat pumps, the unit must have a Heating Seasonal Performance Factor (HSPF2) of at least 8.5 and a Seasonal Energy Efficiency Ratio (SEER2) of at least 16. Ground-source heat pumps must meet an HSPF2 of at least 8.5 and an Integrated Energy Factor (IEF) of at least 20.
Central air conditioners must have a SEER2 rating of at least 16. These ratings are technical specifications that manufacturers publish on the equipment's label and in product documentation. Your contractor should verify these numbers before ordering or installing the system. If the unit does not meet the threshold, you cannot claim the credit, even if it is otherwise new and installed in 2024.
The efficiency standards are the same whether you live in a cold climate or a warm one. A unit that qualifies in Maine qualifies in Florida. However, different manufacturers' models vary widely in efficiency, so comparing units before purchase is important if the tax credit is part of your decision.
How to document your HVAC purchase for the tax credit
You will need three pieces of documentation when you file your 2024 tax return. First, keep the manufacturer's certification statement or product data sheet showing the SEER2, HSPF2, or IEF rating. Second, keep your invoice or receipt showing the date of purchase and installation, the equipment model number, and the cost. Third, keep proof that the equipment was installed in your home — typically a signed work order or final invoice from the contractor showing the installation address and completion date.
Ask your contractor to provide the manufacturer's certification before work begins. Many contractors have this on file or can request it from the supplier. If you purchase the equipment yourself and hire a separate installer, you will need documentation from both the seller and the installer showing the dates and the equipment details.
The IRS does not require you to attach these documents to your tax return, but you must keep them for your records in case of an audit. Store them with your other 2024 tax documents for at least three years.
Heat pumps versus central air conditioners under the credit
Heat pumps and central air conditioners are different systems with different credit limits. A heat pump heats and cools your home by moving air or ground heat; it qualifies for up to $2,000. A central air conditioner only cools; it qualifies for up to $600. If you install a heat pump to replace an old furnace and air conditioner, you claim the $2,000 heat pump credit, not both a furnace credit and an air conditioner credit.
Heat pumps are generally more efficient over a full year because they provide both heating and cooling. If you live in a climate where you use heating for several months, a heat pump often costs less to operate than a furnace plus air conditioner, and the higher tax credit reflects that efficiency gain. However, the credit is the same whether you install an air-source heat pump (which works in most climates) or a ground-source heat pump (which is more expensive upfront but more efficient).
If you already have a furnace and are only replacing your air conditioner, you can claim the $600 central air conditioner credit. You cannot claim a credit for the furnace unless you replace it with a heat pump or another may have access to system.
When you claim the credit on your tax return
You claim the HVAC credit on Form 5695, Residential Energy Credits, which you file with your 2024 tax return. The form asks for the date the equipment was placed in service, the cost, and the type of equipment. You then transfer the credit amount to your main tax return (Form 1040 for most filers).
The credit reduces your federal income tax dollar-for-dollar. If you owe $3,000 in federal tax and claim a $2,000 heat pump credit, your tax liability drops to $1,000. If the credit is larger than your tax liability, you cannot carry the excess forward to future years under current rules — the credit is limited to your tax owed in 2024.
You file Form 5695 only once per year, even if you installed multiple may have access to systems. However, you can claim only one credit per type of equipment per year. If you installed two heat pumps in 2024, you can claim the credit for only one of them.
The $3,200 annual cap across all home energy credits
The HVAC credit is part of a broader set of home energy credits that share a $3,200 annual limit. Other credits in this category include insulation, windows, doors, roofs, water heaters, and heat pump water heaters. If you installed a heat pump for $2,000 and replaced windows for $1,500, your total home energy credits would be $3,500, but you can claim only $3,200 in 2024. The remaining $300 carries forward to 2025.
The $3,200 cap applies per household per year, not per system or per person. If you and your spouse both own the home and both file taxes, you still share the single $3,200 limit. Plan your home improvements accordingly if you are considering multiple upgrades in the same year.
Credits that exceed the $3,200 limit in 2024 roll over to your 2025 tax return, where they can be claimed against 2025 tax liability. This carryover applies only to unused credits; you cannot claim a credit for equipment installed in 2025 on your 2024 return.
Frequently Asked Questions
Can I claim the HVAC credit if I financed the equipment through a loan or payment plan?
Yes. The credit is based on the equipment installed and its cost, not on how you paid for it. Whether you paid cash, took out a loan, or used a contractor's financing plan, you can claim the credit in the year the equipment was placed in service. Keep your receipt showing the total cost, regardless of payment method.
Does the HVAC credit explore if I rent my home or own a second home?
No. The credit applies only to your primary residence — the home where you live most of the year. Rental properties, vacation homes, and investment properties do not may have access to. If you own multiple homes, you can claim the credit only for equipment installed in the one you designate as your primary residence.
What if my HVAC system was installed in late December 2024 but the invoice is dated in January 2025?
The date that matters is when the equipment was placed in service (installed and operational), not when you received the invoice or paid the bill. If the system was running in your home on December 31, 2024, you can claim the 2024 credit. Keep documentation from the contractor showing the installation completion date.
Can I claim the credit if I replaced only part of my HVAC system, like just the outdoor condenser unit?
It depends on what was replaced. If you replaced the entire air conditioning or heat pump system (indoor and outdoor units), you may have access to. If you replaced only the outdoor unit as a repair or partial upgrade, the IRS may not treat it as a new system installation. Consult a tax professional or your contractor about whether a partial replacement qualifies before claiming the credit.
What happens if the contractor installs equipment that does not meet the efficiency standard?
You cannot claim the credit. Before installation, ask the contractor to confirm in writing that the equipment meets the required SEER2, HSPF2, or IEF rating. If you discover after installation that it does not may have access to, you have no recourse for the credit. This is why verifying efficiency ratings before purchase is important.