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How to Qualify for an HVAC Tax Credit in Cincinnati, OH

As a homeowner, you are probably always looking for ways to improve your home, save money, and increase your comfort. One investment that can help you achieve all of those goals is upgrading your heating unit, air conditioning system, or plumbing. What’s more, you could be eligible for various tax credits and rebates to offset the cost of these upgrades.

In this blog, we will cover the available HVAC and plumbing tax credits and rebates you can take advantage of, the types of improvements that qualify, and how to claim the credits on your income taxes.

What HVAC & Plumbing Tax Incentives Are Available for Homeowners?

Heating & Cooling Tax Credits

If you’re a homeowner looking to upgrade your heating or cooling system, you could be in luck. The US government offers some generous federal income tax credits for upgrading to energy-efficient air source heat pumps, central air conditioners, boilers, and furnaces. These credits through the Inflation Reduction Act of 2022 can not only save you money in the short term but can also help reduce your energy bills and lower your overall carbon footprint.

To qualify for these tax credits, homeowners must ensure that the systems they install meet specific energy efficiency standards set by the federal government. These include the minimum SEER (Seasonal Energy Efficiency Ratio) for air source heat pumps and central air conditioners, as well as the minimum AFUE (Annual Fuel Utilization Efficiency) for furnaces and boilers.

  • For homeowners who install new air source heat pumps, a federal tax credit of up to $2,000 is available.
  • For central air conditioners, a tax credit of up to $600 is available for qualifying systems.
  • Homeowners can claim a tax credit of up to $600 for furnaces and boilers that meet the energy efficiency requirements set by the federal government.

Water Heater Tax Credits

If you are a homeowner looking to upgrade your water heater system, it’s essential to explore the federal tax credits available to you. The federal government provides tax credits to homeowners who install energy-efficient water heaters, making the initial cost more affordable and enabling users to save money on their energy bills over time.

Gas Water Heaters

Gas water heaters are popular in many households due to their affordability, although they may not be as energy efficient as other options. However, installing a high-efficiency gas water heater can earn homeowners a federal tax credit of up to $600. High-efficiency gas water heaters use less energy to produce hot water, saving homeowners money on their monthly utility bill.

Tankless Gas Water Heaters

Tankless gas water heaters provide hot water on demand, only heating water when needed instead of storing hot water in a tank. This means that there is less wasted energy and can be up to 34% more efficient than a standard gas water heater. The government provides a federal tax credit of up to $600 for homeowners who install a tankless gas water heater.

Heat Pump Water Heaters

Heat pump water heaters are incredibly energy-efficient. This system works by absorbing heat from the surrounding air and using it to heat the water, making it exceptionally efficient in warm climates. Homeowners who install a heat pump water heater can receive a federal tax credit of up to $2,000.

Geothermal Heat Pump Tax Credits

Homeowners who choose to install new geothermal heat pumps in their homes can take advantage of federal tax credits. These credits were renewed as a part of the Inflation Reduction Act and aim to incentivize homeowners to use renewable energy sources, such as geothermal heat pumps.

These tax credits can cover up to 30% of your total costs for the installation of a new geothermal heat pump before January 1, 2033.

How Do I Qualify For and Claim These Rebates?

To qualify for tax rebates from the Inflation Reduction Act of 2022, the equipment you install must meet certain federal efficiency standards. These standards are set by the Department of Energy (DOE) and vary depending on the type of equipment you install. The DOE’s website provides a full list of eligible equipment and efficiency standards, so be sure to check there before making your purchase.

Once you’ve installed your new high efficiency equipment, you’ll need to claim your tax rebate. This involves filing the appropriate paperwork with the IRS and providing documentation of your purchase and installation. The amount of the rebate varies depending on the type of equipment and its efficiency rating, but it can add up to significant savings on your annual taxes.

Available Cincinnati, OH HVAC & Plumbing Energy Rebate Options

In addition to the federal tax credit available through the Inflation Reduction Act of 2022, many states and utility companies offer other incentives to homeowners who upgrade their HVAC and plumbing systems. Here are some of the local programs you may be able to take advantage of in Cincinnati, OH:

Additional Home Energy Tax Incentives You May Qualify For

In addition to an HVAC tax credit or federal tax credits for new water heaters, there are a plethora of tax incentive programs that homeowners like yourself can take advantage of for making other types of upgrades to their homes.

Electrical Panel Upgrades

Installing electrical panel upgrades is an excellent way to increase the safety and efficiency of your home’s electrical system. Additionally, by doing so, you may qualify for a tax credit of up to $600 of the cost of installation.


Proper insulation can lower the amount of energy needed to heat or cool your home, saving you money in the long run. Homeowners who add qualifying insulation to their home may be eligible to receive a tax credit of up to $1,200.


Installing solar panels in your home is a fantastic way to reduce your carbon footprint and energy bills at the same time. Homeowners who install solar panels before January 1, 2033 may also be eligible for a tax credit of up to 30% of the total installation cost.

Windows and Doors

Replacing your windows and doors with energy-efficient models can also help lower your energy bills. A credit of up to $600 is available for installing qualified energy-efficient windows. Additionally, installing energy-efficient doors can allow you to claim a credit of $250 per door, with a maximum tax credit of $500.

Home Audits

Finally, conducting a home energy audit is an essential step in improving the energy efficiency of your home. By performing a home audit, you can identify areas where you’re wasting energy, such as leaks in your home’s insulation or air conditioning system. Homeowners who conduct energy audits may qualify for up to a $150 tax credit.

Learn More About Your Options

Upgrading your HVAC or plumbing system can provide a range of benefits to homeowners, from improved comfort to energy savings. And the good news is that you may be eligible for various tax credits and rebates to offset the cost of these upgrades.

Be sure to research what is available in your area, choose energy-efficient products, and work with a qualified contractor to install your new system correctly. For professional installation services that will help you qualify for energy tax credits, contact Thomas & Galbraith Heating, Cooling & Plumbing today.

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