AC Tax Credit for Homeowners

November 19, 2020
5 min read
AC Tax Credit for Homeowners

Save Money on New Efficient Cooling System for Your Home

Promotional ad for potential $300 tax credit for new energy efficient AC installation


If you’re thinking to update your home’s cooling system, now is the time to act. The government is providing homeowners here in Texas and across the United States a tax credit for making their home’s cooling system more energy efficient. In the recent past, there has been a tax credit for homeowners who get new systems installed in their homes that meet certain qualifications. And they have extended this tax credit. This means you still have time to take advantage of this energy efficiency savings!

Tiger Heating & Air serves homeowners across the entire Corpus Christi, TX area and can professionally install the items that will qualify you for this big savings.

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While you can receive a $300 credit for a new air conditioning system, there are several other credits available to homeowners. Depending on the devices you purchase, you could receive a tax credit for as much as $500. Some home improvement products qualify for a credit of 10% of the cost up to a total of $500. Other products, like for AC, have specific credit values ranging from $50 to $300.


Because this is a Federal Energy Tax Credit, the incentive is for homeowners to increase the efficiency in their home. So you will be rewarded for getting modern HVAC systems that run at high efficiency installed in your home. Installed is a key factor here. This tax savings is only given for the installation of a qualifying HVAC device. The heating and air products that qualify for this credit have specifications on levels of energy efficiency.


The types of cooling systems that are part of this credit opportunity are those with a higher SEER rating. If your new air conditioner is listed as an ENERGY STAR Most Efficient product, than that is likely one that will qualify for you to get a credit of up to $300.


There are other products that can qualify you for even more tax saving, including water heaters. If you are looking to get a furnace or boiler, look for one with an AFUE rating of at least 95. These can result in a saving of up to $150.

High efficient furnace with high AFUE that qualifies for federal energy tax credit
High efficient AC with high SEER rating that qualifies for energy tax credit

The types of products that qualify include:

  • Furnaces
  • Heat Pumps
  • Water Heaters
  • Hot Water Boilers
  • Circulating Fans

See a complete list of which products qualify and how much savings each qualifies for at the property tax credit list on You will see more home improvement products qualify for a credit such as insulation, roofs, windows and doors. However, the credit for these improvements does not include installation costs.

Note: This is a tax credit solely for homeowners. This is not available for businesses.

You can find information on how to receive your federal tax credit for these energy efficient products at Energy Star’s Tax Credit page. You will also find links to tax forms and IRS contact information.

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This energy efficiency tax credit is available through the end of this year. That means you only have until December 31, 2020 to get a new air conditioning system or other HVAC device installed to take advantage of this savings.

Did you already get a new AC installed? You may still be in luck. What is also good to note about this tax credit is that it is retroactive back to 2018. You still can claim the tax savings on systems and HVAC units you have recently installed.

Take advantage of this tax credit before it’s too late. Contact us today! Tiger Heating & Air are the heating and cooling experts for the Corpus Christi area.

We can provide you with a new air conditioning system or even a complete HVAC package in time to qualify for this tax credit. We install high-end, energy-efficient Trane systems that improve the cooling and comfort in your home. Not only will a new AC save you money on your taxes, but you should also save money on your energy bills. That’s what happens when you have a system that is using less energy to cool your home.

Request a free estimate for a new air conditioning system for your home by calling us at (361) 371-7541.


While our skilled HVAC team can address any problem or question you have about heating and air systems, we are definitely not tax experts. For any questions you have regarding taxes and available credits, you will want to see a tax professional.  

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