In addition to bringing you benefits like lower electric bills, upgrading your air conditioner in 2021 could also help you save some cash next tax season.
In 2020, the government extended the previously-expired Non-Business Energy Property Tax Credits on residential air conditioning equipment. Now, as of January 15, 2021, the Tax Credit has been extended again. This means that certain qualifying air conditioners and heat pumps installedthrough December 31, 2021 are eligible for a $300 tax credit.
The tax credit also retroactively applies to new air conditioners installed in the 2018-2020 tax year. (The tax credit originally expired December 31, 2017.) If you have not previously claimed the Non-Business Energy Property Tax Credit, consult with your tax professional for details.
$300 Federal Tax Credits for Air Conditioners and Heat Pumps