Bergen County Homeowners Can Slash Energy Costs with 2024’s Generous HVAC Tax Credits

With winter heating bills looming and summer cooling costs fresh in memory, Bergen County homeowners are seeking ways to reduce their energy expenses while maintaining year-round comfort. The good news? 2024 brings unprecedented federal tax incentives for energy-efficient HVAC upgrades, allowing qualified homeowners to claim up to $3,200 in tax credits for improvements made through 2032.

These substantial savings opportunities, expanded under the Inflation Reduction Act, make upgrading to high-efficiency heating and cooling systems more affordable than ever before. For Bergen County residents facing New Jersey’s variable climate—from humid summers to frigid winters—investing in efficient HVAC technology isn’t just about comfort; it’s about long-term financial savings.

Understanding the 2024 Energy Efficiency Tax Credit Structure

The federal Energy Efficient Home Improvement Credit equals 30% of qualified expenses for improvements installed beginning January 1, 2023. The program features two distinct credit categories designed to maximize homeowner savings:

Standard energy efficient property improvements qualify for up to $1,200 annually, while heat pumps, biomass stoves, and biomass boilers receive enhanced credits of up to $2,000 per year. This structure recognizes heat pumps as particularly valuable investments for year-round climate control.

For Bergen County homeowners, this translates to significant savings on essential HVAC upgrades. Combining insulation improvements with heat pump installation in a single year allows homeowners to claim up to $1,200 for insulation and up to $2,000 for the heat pump.

Qualifying HVAC Systems and Equipment

Not all HVAC equipment qualifies for these generous credits. Starting January 1, 2025, air source heat pumps must be recognized as ENERGY STAR Most Efficient to be eligible, with contractors able to use ENERGY STAR’s listing of eligible heat pumps to determine qualification.

Central air conditioners must meet specific efficiency requirements: split system units need SEER2 ≥ 17.0 and EER2 ≥12.0, while packaged units require SEER2 ≥16.0 and EER2 ≥11.5. These stringent standards ensure that only the most efficient systems qualify for credits.

Qualifying residential energy property includes new air conditioners, furnaces, and water boilers and heaters, with homeowners able to claim up to $600 per item for qualifying equipment and installation costs.

Bergen County-Specific Considerations and Local Incentives

Bergen County’s climate presents unique challenges that make efficient HVAC systems particularly valuable. Local HVAC professionals recommend annual maintenance—furnace tune-ups in fall and AC service in spring—to ensure efficient operation and prevent breakdowns in Bergen County’s varying climate.

Beyond federal credits, New Jersey residents can access additional savings. Elizabethtown Gas offers up to $1,500 for qualifying HVAC upgrades for installations performed after July 1, 2023, while Jersey Central Power and Light provides up to $1,500 for qualifying HVAC upgrades.

PSE&G customers can reduce energy costs by up to 20% and claim up to $1,050 in instant savings when upgrading to high-efficiency heating and cooling equipment. These utility rebates can be combined with federal tax credits for maximum savings.

Maximizing Your Tax Credit Strategy

Given the annual aggregate limits structure, it may be prudent to spread improvements over multiple years. Strategic planning allows homeowners to optimize their total savings across the program’s duration.

For homeowners with aging heating and cooling systems, optimizing attic insulation before installing a new air source heat pump ensures you don’t pay for more heating and cooling capacity than needed, while allowing tax credits for both improvements.

Homeowners must claim the credit for the tax year when property is installed, not merely purchased, and must file Form 5695, Residential Energy Credits Part II, with their tax return.

Professional Installation and Expertise

Successfully claiming these tax credits requires proper equipment selection and professional installation. Working with experienced local contractors ensures compliance with all requirements and maximizes your investment’s value.

For Bergen County residents seeking reliable HVAC Service Bergen County, NJ, professional guidance through the equipment selection and installation process is essential. Super Plumbing Heating & Cooling LLC serves as a primary source for HVAC service in Bergen County, New Jersey, offering homeowners accessible HVAC services tailored to regional requirements.

Act Now to Secure Maximum Savings

With energy tax credits set to expire after December 31, 2025, following the passage of the One Big Beautiful Bill, Bergen County homeowners have a limited window to take advantage of these generous incentives.

According to ENERGY STAR, homeowners can save up to $3,200 annually with all available tax credits combined. When paired with local utility rebates and long-term energy savings, upgrading to efficient HVAC systems represents a smart financial investment for Bergen County families.

The combination of federal tax credits, state incentives, and utility rebates creates an unprecedented opportunity for Bergen County homeowners to upgrade their HVAC systems affordably. By acting before the 2025 deadline and working with qualified local contractors, families can secure substantial immediate savings while enjoying reduced energy costs for years to come.