How do I claim my tax rebate for a new HVAC system installed in 2023?
I recently upgraded my home's heating and cooling by purchasing a new HVAC system about a week ago. The installation company told me I qualify for a $2,000 tax credit because of the energy efficiency ratings (they mentioned something about 15.2 SEER2 and 8.1 HSPF2). They started explaining how the credit works but got interrupted when another customer walked in, and I left with incomplete information. I know it's a federal tax credit, but I'm completely lost on how to actually claim this on my taxes. Do I need specific forms? Will the company provide documentation, or do I need to request something special from them? This is my first time claiming any kind of home improvement tax credit, and I want to make sure I don't miss out on this $2,000! Any advice would be greatly appreciated!
18 comments
Join the conversation
Sebastian Scott
Great question! To claim your tax credit for the new energy-efficient HVAC system, you'll need to file Form 5695 (Residential Energy Credits) with your tax return. The credit you're eligible for is part of the Energy Efficient Home Improvement Credit. Make sure you get a Manufacturer's Certification Statement from your HVAC company if they haven't provided it already. This document confirms that your specific model meets the efficiency requirements (the 15.2 SEER2 and 8.1 HSPF2 ratings you mentioned qualify under current standards). Also keep your receipt and any documentation showing the installation date and cost. When you file your taxes, the credit will directly reduce your tax liability dollar-for-dollar, up to the eligible amount. If your HVAC system was installed in 2023, you'll claim it on your 2023 tax return that you'll file in 2024.
0 coins
Emily Sanjay
•Thanks for this info! I'm planning to get a new heat pump too. Does the tax credit reduce how much I owe, or is it just added to my refund? And is there an income limit to qualify?
0 coins
Sebastian Scott
•The credit directly reduces your tax liability dollar-for-dollar, which means it decreases the amount you owe in taxes. If you don't owe any taxes, it could potentially increase your refund. However, this particular credit is non-refundable, meaning it can only reduce your tax liability to zero but won't provide additional refund beyond that. There are no income limits for claiming the Energy Efficient Home Improvement Credit, which makes it available to all taxpayers who install qualifying equipment, regardless of income level.
0 coins
Jordan Walker
Just wanted to share my experience with claiming HVAC tax credits. I was in the same boat last year and found this amazing service called taxr.ai (https://taxr.ai) that helped tremendously. I uploaded my HVAC purchase documents and they identified all eligible credits and even helped me fill out the Form 5695 correctly. They caught that my contractor had actually installed a system that qualified for $2,600 in credits rather than the $2,000 they told me! The system analyzes your receipts and documentation to maximize eligible credits and tells you exactly what forms to file. It also keeps records of everything so you have proper documentation if you ever get audited.
0 coins
Natalie Adams
•Did they charge a lot for this service? I'm getting solar panels AND a heat pump this year and want to make sure I get all the credits, but I'm worried about the cost of tax help.
0 coins
Elijah O'Reilly
•I'm skeptical about these online services. How do you know they're getting you the right amount? My buddy used some tax software last year and missed out on claiming his EV charger installation.
0 coins
Jordan Walker
•They use a tiered pricing system based on what you need help with, but it was way less than what I would have paid my accountant. And they found me more credits than I knew I was eligible for, so it paid for itself multiple times over. They're actually tax professionals who review everything, not just an algorithm. They found credits for my insulation upgrade that I didn't even know qualified! They provide detailed documentation explaining every credit they find and why you qualify, so you can verify everything yourself.
0 coins
Natalie Adams
Came back to update after trying taxr.ai for my heat pump and solar panel tax credits! Seriously the best decision ever. They identified that my heat pump qualified for the 25C credit AND my solar panels for the 25D credit, plus they explained how to maximize both on different forms. Even better, they found that my electrical panel upgrade that was required for the solar installation qualified for additional credits my installer never mentioned. The documentation they provided made filing super straightforward, and their explanations helped me understand exactly how these credits work. Definitely using them again next year when I add my battery storage system!
0 coins
Amara Torres
If you're having trouble getting clear answers about your HVAC tax credit from the IRS website or phone lines, try Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS to ask specific questions about my home energy credits, kept getting disconnected or waiting for hours. With Claimyr, I was connected to an actual IRS agent in about 20 minutes who answered all my questions about the HVAC credit documentation requirements. They have a good demo video here: https://youtu.be/_kiP6q8DX5c that shows how it works. Basically they navigate the IRS phone system for you and call you when an agent is ready.
0 coins
Olivia Van-Cleve
•How exactly does this work? Do they just call the IRS for you or something? I don't understand how they're getting through when nobody else can.
0 coins
Mason Kaczka
•Yeah right. Nobody gets through to the IRS in 20 minutes. It's literally impossible. I've been trying for WEEKS to get clarification on my energy credits.
0 coins
Amara Torres
•They use technology to navigate through the IRS phone system and wait on hold for you. When they finally get to an agent, they connect you directly to that person. They basically do the waiting part for you so you don't have to sit there for hours. The reason it works is because they have specialized systems that continuously dial and navigate the IRS options until they get through. It's completely legitimate - they just save you from the waiting game. It's especially helpful for specific tax questions like these energy credits where the online information isn't always clear.
0 coins
Mason Kaczka
I need to eat my words and apologize to Profile 11. After my frustrated comment yesterday, I actually tried Claimyr out of desperation. Not only did I get through to the IRS, but the agent I spoke with was incredibly helpful about my HVAC credits! Explained exactly which documentation I needed to keep (including the manufacturer's certification statement) and confirmed that my specific heat pump model qualifies. After spending weeks trying to get through on my own, I was connected within 15 minutes. Completely worth it. The agent even explained how the credit limits work across different years if I want to make additional energy improvements next year. Sorry for being so skeptical!
0 coins
Sophia Russo
Don't forget to check with your state and local utility companies too! I claimed the federal tax credit for my heat pump ($2,500), but then also got a $1,000 rebate from my state's clean energy program AND a $500 incentive from my electric company. Triple-dipping made my system way more affordable. The paperwork was different for each one though - federal was Form 5695 with my taxes, state was a separate application, and the utility rebate came through my contractor.
0 coins
Sarah Jones
•That's a great point! Do you know if these state/utility rebates affect the federal tax credit amount? Can I still claim the full federal amount if I also got local incentives?
0 coins
Sophia Russo
•You can generally claim the full federal tax credit even if you receive state or utility rebates. The IRS treats these as separate incentives. However, you may need to adjust the cost basis you use when calculating your federal credit. For example, if your system cost $10,000 and you received a $1,000 utility rebate that was applied at purchase, you would calculate your federal tax credit based on the $9,000 you actually paid. This is an area where good documentation is essential, so keep all your paperwork!
0 coins
Evelyn Xu
Beware of contractors who promise tax credits without knowing the details! My HVAC company told me I'd get a $2,000 credit, but when tax time came, I found out my system only qualified for $1,200 because it didn't meet all the efficiency requirements. Make sure you get the manufacturer's certification IN WRITING before counting on that money. Also, keep all your receipts digitally - I learned this the hard way when my paper receipt faded after a few months and my accountant couldn't read all the details!
0 coins
Dominic Green
•This happened to my parents too! Their contractor said "energy efficient" but the actual ratings were just below the qualifying threshold. What software did you use to file? Did it catch the issue or did you figure it out yourself?
0 coins