HVAC systems are a significant investment. One way to help make your investment more affordable is to take advantage of government tax credits that are still available. These tax credits are offered to encourage home owners to upgrade to more energy efficient systems that will help conserve energy and reduce pollution.

The following federal tax credits are available for qualified HVAC products installed before Dec. 31, 2016:

Residential central air conditioners:
$300 tax credit
Packaged systems must have a SEER rating of 14 or higher and a EER rating of 12 or higher.
Split systems must have a SEER rating of 16 or higher and a EER rating of 13 or higher.

Residential gas, oil, or propane furnace or hot water boiler:
$150 tax credit
It must have an AFUE of 95 percent or higher.

Residential gas, oil, or propane water heater:
$300 tax credit
It must have an energy factor of .82 or higher or a thermal efficiency of .90 or higher.

Residential electric heat pump water heater:
$300 tax credit
It must have an energy factor of 2.0 or higher.

Residential air-source heat pumps:
$300 tax credit
Split systems must have an HSPF of 8.5 or higher, a EER rating of 12.5 or higher, and a SEER rating of 15 or higher.
Packaged systems must have an HSPF of 8 or higher, a EER rating of 12 or higher, and a SEER rating of 14 or higher.

These tax credits are offered only to homeowners for their principal residence. To qualify for these tax credits, the equipment must meet all of the performance specifications for that category. Water heaters are the only exception and only need to meet one of the specifications. Improvements made in 2016 will need to be claimed on your 2016 taxes using tax form 5695. Be sure to save your receipts and the manufacturer’s certification statement for your records. There is a lifetime credit cap of $500 on improvements made since Jan. 1, 2006.

Take advantage of these tax credits before they’re gone.