Federal Tax Credits


Federal Air Conditioning Tax Credit

For full information on all federal tax credits, visit energystar.gov.

Is Your Air Conditioner Eligible for a Tax Credit?

Could you use an extra $300? You might be eligible to receive a federal tax credit if you purchased a high-efficiency air conditioner or heat pump last year, or if you purchase one in 2016.

What is the Tax Credit?

The Residential Energy Efficiency Tax Credit originally came about in 2011, and expired in December, 2014. However, this federal tax credit has now been renewed. It now covers purchases of qualifying new HVAC equipment made before December 31st, 2016. Plus, good news – it also retroactively applies to purchases of air conditioners and heat pumps made starting January 1, 2015.

What are the Requirements?

Air conditioners will receive a tax credit of $300, and must meet the following criteria:

Split Systems:

SEER >= 16
EER >=13

Packaged Systems:

SEER >=14
EER >=12

Search here to see if your air conditioner qualifies.

Which Trane & Lennox Products Qualify?

For more information about qualifying Trane products, click here.
For more information about qualifying Lennox products, click here.


What’s the Catch?


The federal tax credit only applies to existing homes, not new construction. The home must also be your primary residence – no secondary residences or rentals. 
You can only claim up to a total credit of $500 for all of the years (2011-2016) combined. If you’ve already claimed $500 in tax credits, you won’t be eligible to claim any more credits.

How Do I Apply?

File IRS Form 5695 with your tax return. You can download the form here. The credit amounts you may receive are subject to IRS regulations, so we recommend consulting a tax professional for advice on tax preparation. 

To What Other Appliances Does the Tax Credit Apply?

Even if you didn’t upgrade your heating & cooling system, you might have purchased another qualifying household appliance like a Hybrid Heat Pump Water Heater. Check the entire list of qualifying appliances.


Federal Tax Credit - GeoThermal Heat Pumps


What is the Tax Credit?

Geothermal heat pumps are considered the most energy efficient heat pumps, because they use the earth’s natural heat from the ground instead of heat from the outside air. If you purchase a new Geothermal Heat Pump between January 1, 2011 and December 31, 2016, you’ll receive a Federal Tax Credit for 30% of the cost, with no limit, including installation costs.

What are the Requirements?

Existing homes, new construction, principle residences and second residences qualify for the tax credit, but rentals do not qualify. The geothermal heat pump must meet the ENERGY STAR® program requirements at the time of its purchase. 

To learn more about the requirements for geothermal heat pumps, and see if your system qualifies, click here.

Which Trane Geothermal Products are Eligible?

Click here to find out which Trane Geothermal heat pumps are eligible for a federal tax credit.

How to I Apply?

File IRS Form 5695 to receive the credit. You can download the form here. The credit amounts you may receive are subject to IRS regulations, so we recommend consulting a tax professional for advice on tax preparation.

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