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 2025 – 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.