Rebates and Credits
If you’re considering upgrading your home or property to be more energy efficient, you may be eligible for certain rebates and tax credits.
Federal Solar Tax Credit
Homeowners who purchase and install solar energy systems may qualify for the Solar Tax Credit (25D) offered by the U.S. federal government. To qualify, the property where solar panels will be installed must be a primary or secondary home and may be either an existing property or new construction. Rental properties do not qualify. If you choose to take advantage of the federal solar tax credit, up to 9% of the total retail cost may be covered of the Solar-Ready Heat Pump or Air Conditioner that’s at the heart of the SunSource® Home Energy System when solar modules are applied. Additionally, up to 30% of the cost with no upper limit on solar module installation may be covered.
Federal HVAC Tax Credit
The U.S. federal government offers a heating, ventilation and air conditioning (HVAC) tax credit (25C) for residential equipment purchased and installed between 2012 and 2021. To qualify, the equipment must have been installed in an existing building that serves as your primary residence. Additionally, if you claimed $500 or more for your home’s energy efficiency improvements between 2006 and 2014, you will not qualify for the federal HVAC tax credit. If you claimed less than $500 for your home’s improvements during this time period, you may still qualify but only a portion of your costs will be covered.
The federal HVAC tax credit may cover:
- Up to 10% of the cost to $500, or a specific amount from $50 to $300
- $300 maximum credit available for qualifying central air conditioners, heat pumps, packaged units and ductless mini-split systems
- $150 maximum credit available for qualifying furnaces and boilers
Federal Energy Efficiency Tax Credit
In February, the Bipartisan Budget Act of 2018 extended several tax credits for residential energy efficiency improvements that expired on December 31, 2016. This means that residential energy-efficiency products and installments made throughout the year 2017 are retroactively qualified for the federal tax credit.
Find more information about federal tax credits, visit https://www.energystar.gov/about/federal_tax_credits.
For information regarding local energy tax credits, search the DSIRE Database of State Incentives for Renewables and Efficiency® at dsireusa.org or contact us.
Lennox® Rebates and Financing
Please click here to see current rebates and financing options
How to Claim an Energy Tax Credit
Claiming your energy tax credit is a relatively simple process. You’ll need to enter the product model number and indoor coil model number of your qualifying equipment on your IRS Form 5695. If you need assistance finding these numbers on your Lennox® or other energy-efficient HVAC equipment, simply give us a call. Our team is happy to assist you with the process. We also recommend that you contact a tax professional for specific advice regarding your energy tax credit.
Contact Valley Heating, Cooling, Electrical and Solar at (408) 677-2920 to learn more about financing, rebates and credits for your San Jose heating, AC, electrical or solar equipment.
