Newly built homes and rents are not eligible for this housing tax credit. There are many ways to save on household energy bills when upgrading your appliances. Water heaters, air conditioners and certain stoves are eligible for a 30 percent tax credit if you upgrade to newer, more efficient models. Be sure to consider the additional cost of these fuel requirements when calculating the total replacement cost of your HVAC system.
Now is a good time to start thinking about upgrading your air conditioning system, because, thanks to the federal government, you may be eligible for both a tax credit and a refund on your new HVAC unit. If you're thinking about replacing an old or worn out air conditioning system or other important component of your home, you can maximize your tax benefits by spreading the improvements over several tax years.
