2023 HVAC Federal Tax Credits for Utah Homeowners

The Inflation Reduction Act of 2022, which was designed to help homeowners save on their energy bills, has been updated for 2023. This means Utah homeowners could be saving big on appliances like heat pumps and water heaters. Up to $7,000 is available in rebates and tax credits for qualifying systems.

Call Mountain Air Conditioning & Heating at (801) 416-2215 to understand what these tax incentives mean for your Ogden home.

How To Qualify for Rebates

It’s important to ensure your system qualifies for rebates before having it installed in your home. In Utah, new HVAC systems must have a SEER2 rating of 14 or higher to qualify for federal incentive programs.

Mountain Air installs high-quality Lennox systems that qualify for rebates through Lennox and federal programs.

What Is a SEER Rating?

Most rebates have a minimum SEER, or seasonal energy efficiency ratio, requirement. This measures how much energy it takes to run the system where higher SEER ratings indicate greater energy efficiency.

Federal Tax Credits — Air Conditioning

It’s best to talk with a professional to determine which system is right for your home and qualifies for rebates and tax credits.

Generally, however, these eligibility guidelines apply for ENERGY STAR®-certified air conditioners purchased and installed after Jan. 1, 2023 (and before Dec. 31, 2032):

Split systems: SEER2 of 16 or more
Packaged systems: All ENERGY STAR-certified systems are eligible

Products that fit these guidelines are eligible for a tax credit of 30% of the project cost with a $600 maximum credit.

Federal Tax Credits – Air-Sourced Heat Pumps

Heat pumps that are ENERGY STAR certified must have these specs to be eligible:

SEER2: 16 or greater
EER2: 12 or greater
HSPF2: 9 or greater

These systems can earn a tax credit worth 30% of the total project cost for a maximum of $2,000.

Federal Tax Credits—Natural Gas, Propane, or Oil Furnace & Fan

New ENERGY STAR-certified furnaces purchased and installed between Jan. 1, 2023 and Dec. 31, 2032 also qualify for federal tax credits if they meet these criteria:

Gas furnaces: AFUE of 97% or greater
Oil furnaces: Must be rated to use fuel with at least 20% of the volume composed of biodiesel, renewable diesel, or second-generation biofuel

Upgrade Your Home With Energy-Efficient HVAC Units

If you’re ready to take advantage of these savings to improve your home’s comfort and efficiency, Mountain Air can help. We’ll assess your home to determine which eligible systems are right for your needs and budget.

We install and service a variety of HVAC systems in and around Ogden, UT: