Asked on Feb 28, 2020

How do I know if my HVAC system qualifies for tax credits?

Becky at Flipping the FlipCheryl ANaomie Moore aka baileyanddaisey, Castaic CA
+12

Answered

I’m trying to get Tax Credits for my new 14 SEER Heat Pump & I’m confused about if I’ve a Package System or not.In my previous home, SEER Points could be added with the Coil. IDK how to Calc that. Also got a new TXS valve, old Freon purge & recharge. The Stage II electric heating elements & air handler were new in 2014. Thanks pros for your help.


9 answers
  • Mogie
    on Feb 29, 2020

    Call the company and ask them. They most likely do this quite often.

    • Lifestyles Homes
      on Feb 29, 2020

      Yes, for $3300, I should get some advice.

      But I’m not going to ask them elementary questions, so I’m starting here to get my vocabulary increased.

      Thanks.

    • Lifestyles Homes
      on Feb 29, 2020

      Thanks William. You are the one I wanted to hear from, in your own words.

      Those two articles don’t address the additional SEER’s points for the Coil and hopefully the TXS.

      My new heat pump itself is 14 SEER which qualifies for a Tax Credit, IF I have a Package System.

      The definition of a Package System is conflicting, depending on which definition I read.


  • William
    on Feb 29, 2020

    Generally a package system is where the coil is a direct match with the main unit rather than just having a main unit replaced leaving the existing coil. With AC or heat pumps replacing the main unit and coil has been the norm for over twenty years. Sometimes, based on budgets, only the main unit is replaced but not the coil. That does reduce the efficiency. The TXS valve is a temperature pressure unit that adjust the flow of freon between main unit and coil based on the differential of outside and inside temp and pressure on boiling point of . freon. Since your unit is new and 14 SEER it would have to match the coil. I would say take the tax credit.

  • Christina Faye Repurposed
    on Feb 29, 2020

    Maybe consult a local tax professional.

    • Lifestyles Homes
      on Feb 29, 2020

      Thanks. My tax pro says to look at the links inside the IRS.gov.

      I did. I’ve downloaded the forms, the instructions and even looked at their links to IEEC. It is not transparent, and being an architect, I am used to wading through tons of Codes & Ordinances’ boiler plate.

  • Judy H.
    on Feb 29, 2020

    We recently had our HVAC system replaced. My husband called the heating and cooling company that sold and installed our system to obtain tax credit information. We were pleasantly surprised by the credits we received.

  • Kathy Gunter Law
    on Feb 29, 2020

    You can double check with the irs and request a written answer for back up but in general I think it would qualify based on above comments. It’s been a few years since I took personal income tax, around 2013, but the best advice I have to anyone if they aren’t certain is either get a letter or save a copy of the conversation if online help.

  • Wow! Lots of fantastic suggestions.


    When I replaced my electrical panel, then installed a completely new HVAC system, I contacted the County, (I am not within city limits), and both my electric and gas companies. They had info on their websites, but it was a bit confusing. They each sent someone out to evaluate and I ended up with a nice little tax credit. Same thing when I replaced my water heater. I am jealous, I paid way more than $3,300. 🌞

  • Cheryl A
    on Feb 29, 2020

    You can go online to your county or state and find out what HVAC systems are included in the tax credits also IRS.gov will have the info. We found out thru IRS.gov what our HVAC requirements were for tax credits.

  • Contact your local energy company, they should be able to let you know. If not, they should know who can tell you or reach out to the taxing body that gives the credits.

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