Are you thinking of replacing your old or worn-out air conditioning system? If so, you may be eligible for a tax credit and refund for your new air conditioning unit. The federal government offers a 30 percent tax credit to homeowners and rental property owners who switch to newer, more efficient models. However, newly built homes and rentals are not eligible for this housing tax credit. It's important to factor in the additional cost of fuel requirements when calculating the total cost of replacing your HVAC system.
If you want to maximize your tax benefits, you can spread out the improvements over several tax years. This is a great way to save on home energy bills and upgrade your appliances.