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HVAC IRA Tax Credit Guide For Scottsdale & Phoenix Homeowners

Save With Champion Air & IRA Tax Credits

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The Inflation Reduction Act (IRA) will inject billions of dollars into the U.S. residential sector, transforming the industry as we know it. While rebates depend on state rollouts still in development, tax credits like the Energy Efficient Home Improvement Credit are available now.

At Champion Air, we’re here to help you understand and take advantage of these tax credits for your HVAC system.

In this guide, we’ll cover the Residential Energy Property Credit, savings on heat pumps, ENERGY STAR® ratings and credits, and how Champion Air can help you save even more on your HVAC system.

Residential Energy Property Credit

The IRA has increased the limit of the Energy Efficient Home Improvement Credit from a $ 500-lifetime cap in 2022 to an annual credit of up to $1,200, available at least through 2032. The tax credit limit for heat pumps is $2,000, which you can combine with the $1,200 allotted for other eligible assets.

Central AC units and gas furnaces have an available credit of up to $600 for each item. The credit is for new equipment only for existing homes within the U.S.

Residential Energy Property

Central A/C
Credits Available Max Credit Notes
30% of Costs up to $600 $600 Each Installed System – Includes Labor
Natural Gas Air Conditioners
Credits Available Max Credit Notes
30% of Costs up to $600 $600 Each Installed System – Includes Labor
Electric Heat Pumps
Credits Available Max Credit Notes
30% of Costs Each Installed System – Includes Labor

Save On Heat Pumps In Scottsdale, AZ

Heat pumps are eligible for a special increased tax credit of $2,000, which you can combine with the $1,200 allotted for the other eligible assets. By choosing a high-efficiency heat pump that meets these criteria, you can save even more on your HVAC system with the help of the IRA tax credit program.

Heat pumps are eligible for 30% available credits for each item. The credit is for new equipment only for existing homes within the U.S.

ENERGY STAR® Ratings & Credits

Your HVAC equipment must meet specific ENERGY STAR ratings to qualify, which vary based on the Department of Energy’s climate regions. By choosing HVAC equipment with the appropriate ENERGY STAR ratings, you can save energy, reduce your environmental impact, and take advantage of the tax credits offered under the IRA.

Central AC units require a 16.0 SEER2 rating or greater and an EER2 of 12.0 or greater. A gas-forced air system requires a qualifying CEE tier of three.

Eligible Efficiency Ratings

Central A/C
Qualifying CEE Tier SEER 2 EER 2
2 ≥ 16.0 ≥ 12
Heat Pump (Ducted)
Qualifying CEE Tier SEER 2 EER 2
1 ≥ 15.2 ≥ 11.7
Heat Pump (Unducted)
Qualifying CEE Tier SEER 2 EER 2
2 ≥ 16.0 ≥ 12

Save On HVAC In Scottsdale With Champion Air

Champion Air, founded in 1982, is dedicated to providing top-quality HVAC services in the Phoenix Valley. As an Elite Pearl Certified contractor, we prioritize our customers’ needs. We’re committed to offering the best HVAC solutions for your home.

With Champion Air, you can enjoy:

In addition to these benefits, we also service all brands of HVAC equipment, with a specialization as a Lennox dealer. By choosing Champion Air for your HVAC needs, you can take advantage of the IRA tax credits and save even more on your energy-efficient HVAC system.

Don’t wait to save on your HVAC system. Call Champion Air today at 480-748-4000 to schedule a consultation and learn more about how the IRA tax credit program can benefit you.

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