How to Claim Your Federal Tax Credits & Arizona Tax Credits

Including how to claim rebates from APS & SRP

As the intense Arizona summer draws near, maintaining a cool and comfortable indoor environment is crucial. The extreme temperatures not only lead to discomfort within the home but can also pose serious health risks.

Last summer, more than 608 deaths were attributed to heat-related issues, many of which involved individuals over the age of 60 who lived alone and had limited financial resources—or in some cases, lacked functioning air conditioning altogether.

Allstate Air & Heating, LLC. wants to help you save big money with these tax credits and rebates for a new air conditioning unit, smart thermostat installation or air duct sealing service and call: 480-704-4828 or schedule an appointment online.

How Do I Get Tax Credits and Rebates For My New AC Unit?

The Inflation Reduction Act (2022) offers federal tax credits for high-efficiency HVAC products meeting CEE Tier standards, excluding Advanced Tiers, through 2032. Choosing qualifying equipment can help homeowners reduce upfront costs via federal and state programs.

How to Claim a Federal Tax Credit for a new AC Unit, Heat Pump or Air Duct Sealing

The Energy Efficient Home Improvement Credit

If you undertake certified energy-efficient upgrades to your residence after January 1, 2023, you may become eligible for a tax credit of as much as $3,200. This credit can be claimed for improvements completed through the year 2032.

$600 for HVAC unit replacement credit per item

$2,000 for Air Source Heat Pumps

Up to $1,200 for Air Duct Sealing

How can I maximize my tax credits?

If replacing your old heating or cooling system with a new AC Unit or heat pump, first upgrade attic insulation to save on energy costs. Doing both in one year can earn you tax credits of up to $1,200 for insulation and $600-$2,000 for the heat pump.

You can combine a heat pump installation ($2,000 credit) with window/door credits (up to $600 for windows, $500 for doors). Replacing your water heater later grants another 30% credit (up to $2,000) plus up to $600 for an electric panel upgrade or $1,200 for air duct sealing.

Allstate Air & Heating, LLC. wants to help you save big money with these tax credits and rebates for a new air conditioning unit, smart thermostat installation or air duct sealing service and call: 480-704-4828 or schedule an appointment online.

Federal Tax Credit FAQs

Frequently asked questions about energy efficient home improvements and residential clean energy property credits. Go to the official IRS FAQs page for more information.

How to Claim an Arizona Tax Credit for a New AC Unit or Heat Pump?

Home Electrification and Appliance Rebate (HEAR Program)

Efficiency Arizona offers a HEAR rebate program through September 30, 2031 for qualified projects include the installation of Energy Star certified electric heat pumps for space heating and cooling (HVAC units and AC units). The incentive value is 100% of electrification project costs, up to $14,000, for low-income households, and 50% of costs, up to $14,000, for moderate-income households. There is a $500 incentive for project contractors per electrification project.

$8,000 for Energy Star certified HVAC or AC unit installation/replacement or electric heat pumps

Home Efficiency Rebate

Through September 30, 2031 the home efficiency rebate program will subsidize fifty percent of the expenses for projects undertaken by households earning up to 150% of the local median income—approximately $154,000 annually for a family of four in Phoenix. For families whose income does not exceed 80% of the median, the full cost of such projects will be eligible for coverage.

How can I maximize my tax credit?

These rebates can be used with other federal incentives depending on the project to lower costs even more. These rebates can be stacked if it uses the modeled approach (a method used to predict and analyze how energy is consumed within a system), not the measured approach.

Below is a list of qualifying projects that you can take advantage of using the “Rewiring America Calculator”.

• Up to $1,600 for weatherization including insulation, air sealing, or ventilation.
• Up to $8,000 for Energy Star certified electric heat pumps for space heating and cooling.
• Up to $1,750 for Energy Star certified heat pump water heaters.
• Up to $840 for Energy Star heat pump clothing dryers.
• Up to $840 for Energy Star electric kitchen equipment.
• Up to $4,000 for electric breaker boxes.
• Up to $2,500 for electric wiring.

Allstate Air & Heating, LLC. wants to help you save big money with these tax credits and rebates for a new air conditioning unit, smart thermostat installation or air duct sealing service and call: 480-704-4828 or schedule an appointment online.

Arizona Tax Credit FAQs

Frequently asked questions about energy efficient home improvements and residential clean energy property credits. Go to the official Arizona Efficiency page for more information.

How to Claim the APS New Air Conditioner Unit Rebate

Arizona Public Service (APS) electrical company has a AC unit rebate program you don’t want to miss out on! To qualify for the rebate, Allstate Air & Heating, LLC. will submit the rebate form on your behalf and you must meet the following rebate requirements:

Replace your failed or failing AC unit with a qualifying emergency replacement installed by an APS approved ac repair service contractor (rebate is available once per household). The homeowner must be enrolled in our Energy Support program, and the installation must meet APS standards.
Rebate processing takes 6-8 weeks from the time your contractor submits paperwork to APS.

$200 for AC unit replacement

$1000 for AC unit replacement for customers in need

$250 for air ductwork repair and sealing

How to Claim the SRP New Air Conditioner Unit Rebate

The Salt River Project (SRP) offers an air conditioning rebate and residential rebate initiative that presents a worthwhile opportunity for savings you won’t want to overlook. To qualify for the rebate, Allstate Air & Heating, LLC. will submit the rebate forms on your behalf. If you’re considering a new AC unit, heat pump or mini-split system, the SRP Cool Cash Rebate can help lower your costs.

Here are some signs that it’s time to upgrade:

• Your equipment is 10-plus years old.
• Your system is extra noisy.
• Your unit runs longer to maintain the same thermostat setting.

Up to $1,125 for new AC unit replacement, heat pump or mini split system.

Up to $100 for a new smart thermostate installation

Up to $400 for air duct repair and air sealing service

Allstate Wants To Make Air Conditioning Affordable For You & Your Family

Arizona summers can reach beyond 100°F. During these extreme conditions, your current AC system might struggle to keep up, leading to uneven cooling, higher utility costs, and increased wear and tear. Upgrading to a new, energy-efficient air conditioning system can provide numerous benefits:

Enhanced Cooling Efficiency: Modern AC units are designed to cool larger spaces more effectively while using less energy.

Lower Energy Bills: Newer models consume less power, helping you save on monthly electricity costs.
Improved Indoor Air Quality: Advanced filtration systems can reduce dust, allergens, and pollutants, creating a healthier indoor environment.

Long-Term Reliability: Investing in a new AC can reduce the likelihood of unexpected breakdowns during peak summer heat.

The federal and Arizona tax credits, along with APS and SRP rebates, cover various energy-efficient projects.

• High-efficiency electric heat pumps
• Central air conditioners
• Duct and attic air sealing
• Added attic insulation

Allstate Air & Heating, LLC. wants to help you save big money with these tax credits and rebates for a new air conditioning unit, smart thermostat installation or air duct sealing service and call: 480-704-4828 or schedule an appointment online.

Checklist for Claiming Your Tax Credits & Rebates

Gather Your Documentation: Keep detailed records of all receipts and invoices related to your HVAC system purchase and installation, including information such as brand, model number, and Energy Star certification. These documents are essential proof when claiming tax credits and can help you access potential financial benefits.

Know the Deadlines: Most tax credits require you to file within the same tax year that your installation was completed. Keep track of all deadlines to avoid missing them, as they can come up quickly—much like the sudden onset of a monsoon season.

Professional Installation and Compliance: To qualify for HVAC tax incentives, your installation must be done with care and precision, just like the equipment itself. That’s why choosing a professional installer is crucial.

• Precision Matters: Allstate Air & Heating, LLC. knows the proper way to install an HVAC system, ensuring it operates at peak efficiency. It’s not just about comfort; it’s about making sure every bit of energy is used efficiently, maximizing your savings and eligibility for tax credits.
• Code Compliance: Consider local building codes as the essential rules for construction projects. Allstate Air & Heating, LLC. is well-versed in these regulations, ensuring your installation complies with all standards. This helps you meet the necessary requirements and qualify for applicable tax incentives.
• Manufacturer’s Blessing: HVAC systems must meet specific installation criteria to maintain their warranty. Allstate Air & Heating, LLC. strictly follows these standards, providing peace of mind by ensuring the setup matches the manufacturer’s specifications and helps prevent future issues.

Fill Out the Necessary Forms: Completing forms can often feel tedious, yet it is an essential component of the process. Be vigilant in ensuring you select and fill out the appropriate forms relevant to your specific tax credits. In particular, seek out IRS Form 5695 and verify that all details correspond accurately with your supporting documentation.

Consult With A Tax Professional: Whenever uncertainty arises, consulting a taxation expert can be highly beneficial. They possess the knowledge to help you maximize all entitled credits and can provide guidance throughout the filing process, ensuring everything is handled accurately and efficiently.

Submit and Track Your Credit: Once all necessary documents are reviewed and organized, proceed to submit your credit information alongside your tax return to the IRS. Afterward, exercise patience as the processing occurs. It’s advisable to monitor your credit status periodically, since these procedures can sometimes take a little time to finalize.

Allstate Air & Heating, LLC. wants to help you save big money with these tax credits and rebates for a new air conditioning unit, smart thermostat installation or air duct sealing service and call: 480-704-4828 or schedule an appointment online.

Arizona 2020 Tax Credit and Rebate Guide for Energy Efficient AC Unit Installation is provided by Allstate Air & Heating, LLC.

R22 refrigerant has been banned in Arizona meaning old AC units will eventually have to be replaced with new energy efficient units. Thousands of dollars are available to commercial and residential building owners through tax credits, incentives and rebates. President Donald Trump signs bill to restore geo tax credits through 2021 making it easier to install geothermal heating.

Looking for a local, reliable HVAC repair or replacement service? Call: 480-704-4828 or schedule an appointment online.

Old AC units using R22 refrigerant will eventually have to be replaced

The EPA (Environmental Protection Agency) has completely banned the use of R22 because it is contributing to slow degradation of our ozone layer. This means that the majority of AC units in Arizona will have to be replaced with a new AC unit.

Federal Tax Credits for New AC Unit, Heating Unit and Energy Efficient Upgrades

The Bipartisan Budget Act passed in 2017 was an extension of tax credits for energy-efficient upgrades to your home. You can claim the following items on your taxes using IRS Form 5695: Residential Energy Credits.

AC Unit and Heating Units $300 tax credit for Energy Star approved units. You can search for AHRI certified units here.

Geothermal Heat Pumps are an amazing way that can save you up to 60% cost on heating and 50% off on cooling. This technology uses the earth’s natural heat and cooling to heat or cool your home. You can claim up to 26% off cost. Tax credit expires December 31 2021 and is available for both existing homes and new construction.

Windows, Doors and Skylights means you can claim up to 10% of the cost or up to $200 for windows and $500 for skylights.

A new roof that meets Energy Star requirements can earn you up to a rebate where you can claim up to 10% of the cost up or up to $500.

Insulation to reduce air leaks like weather stripping, spray foam or house wrap, etc. can qualify you up to 10% of the cost, or at minimum $500 (product must have manufacturer’s certification statement).

2020 SRP Rebate on New AC Unit or Heating Unit Installation

Arizona summer heat is unbearable and can be deadly. That is why SRP is willing to give you a $1,125 rebate for installing a new energy-efficient AC, heat pump or mini split system.

Hurry, this rebate is only available until Feb. 1 2019

AC rebate requirements in order to participate include:

– Must be a permanent SRP customer
– Must have qualified system installed by a licensed contractor before April 30, 2020
– Replace or supplement existing central heat pump or central AC unit
– Submit Manual J load calculations with your applcation
– Allow, upon request, SRP or our agent to inspect the installed unit to verify compliance
– Click here to download the Cool Cash rebate application.

2020 APS Rebate on New AC Unit or Heating Unit Installation

If your AC unit or heat pump is more than a decade old you may be eligible for an APS rebate of $200. It’s as easy as having a licensed contractor submit the rebate after replacing your old system with a new energy-efficient one.

The unit must be installed according to APS Quality Installation Standards with a minimum of 15 SEER.

You will also save up to 20% annually than a customer who does not use a participating APS contractor.