IRA HVAC Tax Credits
Save thousands on energy-efficient heating and cooling upgrades for your Pittsburgh home
What Is the Inflation Reduction Act?
The Inflation Reduction Act (IRA), signed into law in August 2022, includes significant tax credits for homeowners who upgrade to high-efficiency HVAC equipment. These credits are designed to make energy-efficient heating and cooling systems more affordable, helping Pittsburgh homeowners lower their energy bills while reducing their environmental impact.
Through the IRA's Energy Efficient Home Improvement Credit (25C), homeowners can claim tax credits of up to $3,200 per year for qualifying HVAC equipment and home energy improvements. These credits are available through 2032, giving you plenty of time to plan your upgrade.
Qualifying HVAC Equipment & Tax Credit Amounts
The following high-efficiency HVAC systems qualify for federal tax credits under the IRA.
| Equipment | Max Tax Credit | Key Requirements |
|---|---|---|
| Heat Pumps (ducted & ductless) | $2,000 | Must meet CEE highest efficiency tier |
| Heat Pump Water Heaters | $2,000 | Must meet ENERGY STAR requirements |
| Central Air Conditioners | $600 | Must meet CEE highest efficiency tier |
| Gas Furnaces | $600 | AFUE 97% or higher |
| Gas Boilers | $600 | AFUE 96% or higher |
| Electrical Panel Upgrades | $600 | 200-amp or greater for heat pump readiness |
| Smart Thermostats | $150 | Must be ENERGY STAR certified |
Note: Heat pumps and heat pump water heaters share a combined $2,000 annual cap. All other equipment shares a separate $1,200 annual cap. Combined maximum is $3,200 per year.
Who Qualifies?
Homeowners
You must own the home where the equipment is installed. The credit applies to your primary residence or a second home (not rental properties).
U.S. Taxpayers
You must file a U.S. tax return. The credit reduces your tax liability dollar-for-dollar (it is non-refundable, meaning it can reduce your tax to zero but not generate a refund).
No Income Limit
Unlike some other IRA incentives, the 25C tax credit has no income restrictions. All homeowners can qualify regardless of household income.
Available Through 2032
These credits reset each year, so you can claim them annually for different upgrades. The program runs through December 31, 2032.
Why Heat Pumps Offer the Best Value
Heat pumps qualify for the highest tax credit ($2,000) and offer some of the greatest long-term savings for Pittsburgh homeowners.
Heating & Cooling in One
A heat pump replaces both your furnace and air conditioner with a single, highly efficient system. In moderate Pittsburgh winters, it handles heating; in summer, it reverses to cool your home.
Lower Energy Bills
Heat pumps can be 2–3 times more efficient than traditional heating systems. Many Pittsburgh homeowners report savings of 30–50% on heating costs after switching to a heat pump.
Ductless Options Available
Ductless mini-split heat pumps are ideal for older Pittsburgh homes without existing ductwork, room additions, or areas with inconsistent temperatures.
How to Claim Your Tax Credit
Schedule a Consultation
Contact Complete Home Comfort for a free in-home evaluation. We'll assess your current system and recommend qualifying high-efficiency equipment that fits your home and budget.
Professional Installation
Our licensed technicians install your new equipment to manufacturer specifications. Professional installation is required for the tax credit to apply.
Keep Your Documentation
We provide you with the manufacturer certification statement and your itemized invoice. You'll need these when filing your taxes.
File IRS Form 5695
When you file your federal tax return, include IRS Form 5695 (Residential Energy Credits) to claim your credit. Consult your tax professional for guidance specific to your situation.
Frequently Asked Questions
Is this a tax credit or a tax deduction?
It's a tax credit, which is more valuable than a deduction. A $2,000 tax credit reduces your tax bill by $2,000 directly, whereas a $2,000 deduction only reduces your taxable income by that amount.
Can I combine this with financing?
Yes. You can finance your new HVAC system through our financing options and still claim the full tax credit. Many homeowners use the tax credit to pay down their financing balance.
Does my existing equipment need to be a certain age?
No. There is no requirement that your existing system be a certain age or condition. However, the new equipment must be installed in your existing home (new construction does not qualify for the 25C credit).
Can I claim credits in multiple years?
Yes. The annual caps reset each year. For example, you could install a heat pump this year ($2,000 credit) and a high-efficiency furnace next year ($600 credit).
What brands qualify?
As an authorized Armstrong Air dealer, Complete Home Comfort offers a full line of high-efficiency equipment that meets IRA tax credit requirements. We'll help you identify exactly which models qualify.