Save $2,000 on a High-Efficiency HVAC System in Virginia
If you’ve been thinking about upgrading your HVAC system, now’s the time to act. Thanks to the federal Energy Efficient Home Improvement Credit, Virginia homeowners can receive up to $2,000 in tax credits when they install a qualifying high-efficiency heat pump system.
This credit not only helps offset your installation costs — it also rewards you for making your home more energy-efficient and environmentally friendly.
What the Credit Covers
Beginning January 1, 2023, and running through December 31, 2025, the federal government allows homeowners to claim 30% of qualified expenses (including labor) for certain energy-saving improvements.
For HVAC systems, that means:
Up to $2,000 for eligible electric or natural gas heat pumps, heat pump water heaters, or biomass boilers
Equipment must meet or exceed the Consortium for Energy Efficiency (CEE) highest efficiency tier
The system must be new and installed in an existing primary residence
There’s no lifetime cap on the credit — so if you make other qualifying upgrades in future years, you can continue to claim credits annually through 2025.
Who Qualifies
To qualify, your home must:
Be located in the United States
Be your main residence (not a rental or new construction)
Receive the new HVAC system installation between 2023 and 2025
If part of your home is used for business, you can still claim the full credit as long as business use is 20% or less of the property.
How to Claim Your Credit
When filing your taxes, use IRS Form 5695 (Residential Energy Credits) to claim the Energy Efficient Home Improvement Credit for the year your new HVAC system is installed — not when it’s purchased.
Because the credit is nonrefundable, it reduces the amount of taxes you owe, but won’t generate a refund beyond your liability. Still, it’s a substantial savings for most homeowners.
Why It’s Worth It
Installing a high-efficiency HVAC system can cut your energy bills by 20–40%, improve comfort, and reduce your carbon footprint. With this federal incentive, you’re effectively being paid to upgrade your home comfort system.
At Keystone HVAC, we help Virginia homeowners choose qualified, energy-efficient systems that meet federal standards — so you can enjoy maximum comfort and take advantage of the full tax credit.
Ready to Upgrade?
If you’re considering a new HVAC system or heat pump, now is the perfect time to save.
Contact Keystone HVAC for a free estimate and to learn which high-efficiency systems qualify for the $2,000 federal tax credit.
👉 Reach out today and start saving on your comfort and your taxes. 757-344-4010
