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Did you know that you can get money back on your AC replacement? Tax credits, utility rebate programs, and end-of-season discounts are all helpful for getting a discounted AC system. The easiest way is a tax credit on your new air conditioner. Due to the Inflation Reduction Act of 2022, residential energy efficiency tax credits are available until December 2032, so the best tax credits will be available for the next decade.

Available Tax Credits for Homeowners With AC Systems

The goal of these tax credits is to improve energy efficiency. If you have an older AC system, it could be using far more electricity than newer ENERGY STAR models. Replacing them saves money on your utility bills. It also qualifies you for the best tax credits.

Advanced Main Air Circulating Fan

Get a $50 tax credit when you upgrade your HVAC system’s circulating fan to an energy-efficient one. It cannot use more than 2% of the system’s total energy. To claim it, you will need to complete Form 5695 when you file your taxes with the IRS.

ENERGY STAR Most Efficient Central Air Conditioners Tax Credit

If you replace your system with a central air conditioner that’s rated Most Efficient, you’ll qualify for a $300 tax credit. Most Efficient systems must meet these requirements.

Package Systems – EER equal to or greater than 12 and SEER equal to or greater than 14.

Split Systems – EER equal to or greater than 13 and SEER equal to or greater than 16.

Make sure your AC installation technician provides you with a Manufacturer’s Certification Statement. This is a signed statement that the central AC installed meets the tax credit requirements. Keep a copy of that statement in your tax records.


Did you replace your roofing to make it cooler by reflecting the sun’s rays? If you did, there’s a 10% tax credit (up to $500) available. Qualifying roofing must have cooling granules (asphalt) or pigments that reflect the sun (metal) to prevent the roof from drawing sun and heating up the home.

To apply, fill out Form 5695 when you do your taxes. Keep receipts with your taxes after you file them.

ENERGY STAR Seal and Insulate

If you add attic insulation or improve the insulation in your home’s walls, roof, or basement, the ENERGY STAR Seal and Insulate tax credit is available. Products that can be used to insulate include caulk, house wrap, blown-in fibers, rigid boards, batts, weather stripping, and spray foam. The goal is to have an air-tight home that prevents leaks and drafts.                         

You get up to $500 back. It’s 10% of the cost of insulation, not counting the installation. To quality, products must include a Manufacturer’s Certification Statement. Keep that in your tax files.

Renewable Energy Tax Credits

If you add renewable energy sources to your home to offset the cost of running your central AC, it also qualifies for a tax credit. The available tax credits are:

Geothermal Energy – Water-to-Air, Water-to-Water, and Direct Expansion systems qualify if they meet the COP and EER requirements. The tax credit counts on principal residences and rental or vacation properties.  If the system is installed before January 1, 2023, you get a 26% tax credit. After that day, the tax credit is 22%.

Solar – If you install solar panels that meet local fire and electrical codes, they also qualify for tax credits. Again, it’s good on principal or secondary homes and offers tax credits of 26% if the system is installed before January 1, 2023, and 22% for systems installed after that date.

Wind – Small wind turbines that do not generate more than 100 kilowatts qualify for the Renewable Energy Tax Credit. Again, systems installed before January 1, 2023, receive a 26% tax credit. After that, it drops to 22%.

Florida Rebate Programs

Several of Florida’s utilities have rebate offers in place. Claim them in addition to your tax credits.

Duke Energy

When you install a central AC system with a SEER of 16 or higher, receive a $100 rebate from Duke Energy. To qualify, you must first sign up for a free Home Energy Check. Once this is done, work with a licensed and insured Florida air conditioning contractor to select the best energy-efficient AC system for your home and have it installed.

Florida Power and Light

Many of the available tax credits are being offered by the federal government, but Florida Power and Light (FPL) also has a rebate program available. If you live in a qualifying area, take advantage of the $150 instant rebate. To qualify, the AC you choose has to be installed in your main home and meet these criteria.

  • Both parts of the central AC must be new, that includes brand-new units both inside and outside.
  • The AC must have a SEER rating of 16 or higher.
  • You have to choose a Participating Independent Contractor for the installation.

Florida Public Utilities

Another Florida power company that’s offering rebates is Florida Public Utilities. Customers receive a $100 rebate on a high-efficiency air conditioning system installation or replacement. To qualify for this rebate, the new AC system must:

  • Have a SEER rating of 15 or higher
  • Be installed in your main home
  • Be a ducted HVAC system and not a window unit
  • Be installed following local codes

If you meet those requirements, submit a signed rebate application within a year of the date of the installation.

  1. Tallahassee Government

Residents of Tallahassee qualify for AC rebates through the city’s power department. Rebates of $100 are available on package units. The rebate is paid out through credits on your utility bills.

Other Tips for Saving Money

Rebates and tax credits are great, but you also want a system that helps you save money. A home that is properly insulated is important. It’s also helpful to have ducts that are in good shape. Make sure you have your ducts cleaned, repaired, replaced, or restored as part of a new installation.

Make sure you work with a licensed, insured installer. The last thing you want is an AC system that is undersized or oversized, as that will waste energy and wear out your system’s fans and motors quickly.

Work With an Expert in Florida AC Installations

Don’t miss out on any available rebates or the best AC tax credits. Work with an expert in AC installations in Florida. All Year Cooling knows all about the current tax credits and rebate offers and helps you get the most money back. Plus, we offer end-of-year savings of up to 15% off. It’s our goal to help you save the most on a system that matches your needs.

All Year Cooling is a fully insured and licensed AC contractor and is a Florida state-certified OIR warranty provider. We have technicians available 24/7, even on holidays if you have an emergency.

Talk to us about a new AC unit that comes with a 10-year warranty on parts and labor. Not only will you save on your new central AC unit, but you also have peace of mind for the next decade. If anything goes wrong unexpectedly, we’ll get it fixed. Reach us online through chat or fill out our online form to schedule a free in-home estimate.

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