HVAC Energy Tax Credits in Louisville

Homeowners in Louisville can now access federal tax credits to help offset the cost of energy-efficient HVAC upgrades. These credits—available through 2032—are part of the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit, designed to make comfort and sustainability more affordable.

Save Up to $3,200 Annually with Qualified Improvements

Federal income tax credits allow homeowners to claim 30% of the cost of certain HVAC and home energy upgrades, up to:

  • $2,000 annually for qualifying heat pump systems, heat pump water heaters and biomass stoves/boilers
  • $1,200 annually for improvements like insulation, energy-efficient furnaces, central air conditioners, windows and doors and electric panel upgrades
  • If multiple improvements are made in the same year, a household can claim up to $3,200 in total credits annually.

Eligible HVAC Products Include:

  • ENERGY STAR® certified air-source heat pumps
  • High-efficiency central air conditioners
  • Natural gas or oil furnaces and boilers
  • Electric panel upgrades (if necessary for HVAC improvements)
  • Smart thermostats (if included with eligible HVAC installations)

Know Before You Claim:

  • These credits apply to existing homes, not new construction, and must be located in the U.S.
  • Most upgrades qualify for homeowners and renters, as long as the improvements are made to a home the taxpayer lives in.
  • Use IRS Form 5695 to claim your credits.
  • Starting in 2025, eligible HVAC products must include a manufacturer-provided Qualified Manufacturer (QM) code for proper filing.

➡️ Check out the ENERGY STAR® tax credit guide for full eligibility details and the latest requirements.

Why HVAC Tax Credits Are a Smart Move for Louisville Homeowners

With Louisville’s extreme summer heat and winter cold, upgrading your HVAC system isn’t just a comfort upgrade, it’s a smart financial move. Investing in energy-efficient systems can reduce long-term utility costs, improve indoor comfort, and lower your federal tax bill.

Need help choosing a qualifying system?

Contact John Waters Heating & Cooling to find energy-efficient solutions eligible for these valuable federal credits.