Federal Energy Efficiency Tax Credit & HVAC Equipment Tax Incentives

Beyond promotions, rebates, and financing, taking advantage of the innovation of a Lennox^® system may also mean you can take advantage of federal, eco-friendly tax credits on high-efficiency systems to save even more.

Here's how to get started:

Read on to see if your system qualifies for a federal tax credit
Download the corresponding certificate for your product below
Submit it when you file your tax return

2022 Inflation Reduction Act

On August 16, 2022 the U.S. government signed into law the Inflation Reduction Act (IRA) in an effort to reduce greenhouse gas (GHG) emissions by 40% by 2030. The most meaningful impacts to HVAC are in two key areas.

Energy Efficient Home Improvement Tax Credit (25C)
High Efficiency Electric Home Rebate Program (HEEHRP)

Lennox boasts a broad assortment of ENERGY STAR® qualifying products eligible for these programs.

What Does This Mean for You?

Through the IRA, you will have access to cost-saving options when purchasing energy-efficient and electric appliances or making home improvements to electrify your home or increase its energy efficiency through these programs.

Energy Efficient Home Improvement Tax Credit (25C) Program

The previous Nonbusiness Energy Property credit (25C) for installing high-efficiency equipment was extended through 2022 and provides federal tax credits of up to $500.
The amended Energy Efficient Home Improvement Credit (25C) begins in 2023 and extends through 2032. It increases the tax credit limits for high-efficiency equipment as follows:

Eligible equipment includes:
- Heat pumps and heat pump water heaters
- Energy-efficient HVAC systems (including furnaces, boilers, and central AC)
The 25C credit has an annual cap of $1,200 (except heat pump):
- Up to $600 each for a qualified air conditioner or gas furnace, with an annual cap of $1,200
- Up to $2,000 with a qualified heat pump, heat pump water heater, or boiler

There are no income requirements for this tax credit, and it cannot be combined with other federal programs.

High-Efficiency Electric Home Rebate Program (HEEHRP)

The U.S. government appropriated $4.5B of funds for the High-Efficiency Electric Home Rebate Program (HEEHRP) and will distribute the funds to state energy offices to administer the rebate program.

HEEHRP provides HVAC rebates up to $14,000 per household, including:
- Up to $8,000 for installing Energy Star^® qualified heat pumps
- Up to $4,000 for electrical panel upgrades
- Up to $1,600 for home insulation and sealing
- Up to $2,500 for home electrical wiring improvements
Eligibility and the amount of the rebate depends on household income:
- For households below 80% of area median income, 100% of the system purchase price qualifies for the rebate.
- For households that fall within 80% to 150% of area median income, 50% of the system purchase price qualifies for the rebate.
- Households above 150% of area median income do not qualify for the HEEHRP rebate.

The duration of the program will depend on the funds available within each state and the number of rebates distributed.

Check Available Certification Statements

Explore the certificate links below so see if you qualify. If your equipment is mentioned on the certificate, download it for your tax purposes.

TAX CERTIFICATE – HEAT PUMPS

TAX CERTIFICATE – AIR CONDITIONERS

TAX CERTIFICATE - FURNACES

TAX CERTIFICATE – MINI-SPLITS

TAX CERTIFICATE – PACKAGED UNITS

Other Ways to Save—Local Utility Rebates

You may be eligible for additional utility rebates in your region. Contact your local utilities company to find out, or visit dsireusa.org to search the DSIRE Database of State Incentives for Renewables and Efficiency^®.