2023 Tax Deadline & HVAC Replacement: Guide For Phoenix

With the 2023 tax deadline approaching, this could be a huge benefit for those who have recently made HVAC upgrades or replacements. Homeowners and businesses in Phoenix should know about this opportunity to leverage HVAC tax credits.

2023 Tax Deadline

The 2023 tax deadline is getting close, and you should know about government incentives that could offset the high cost of your energy bills.

If you’re going to miss out on 2023 opportunities to save, the 2024 tax year will bring more opportunities for tax credits related to HVAC replacements, upgrades, and improvements.

These government credits not only help you save money on your taxes, but also encourage energy efficiency and sustainability. This guide will help you explore the available tax credits for HVAC systems upgraded in time to meet the 2023 tax deadline. If you’ve missed out on that opportunity, no worries, 2024 presents new opportunities to save.  We’ll tell you how you can qualify, and what steps you need to take to benefit from these incentives.

Energy Credits

Energy credits are incentives provided by governments to encourage certain behaviors or investments. In the context of HVAC systems, these credits aim to help homeowners reduce their carbon footprint.

As the 2023 tax deadline approaches, you may be eligible for these credits if you upgraded your home in 2023.  And if you’re a little late to the game, this guide will supply you with helpful information to make sure you get the credits for the 2024 tax year.

By upgrading to more energy-efficient HVAC systems, homeowners can lower their energy consumption, reduce utility bills, and contribute to environmental conservation efforts.

The United States federal and state governments offer tax credits for qualifying HVAC upgrades and installations. These credits can help offset the initial costs of purchasing and installing energy-efficient heating and cooling systems, making them more accessible to homeowners.

Tax Credits for HVAC in Arizona

The 2023 tax deadline is fast approaching, and you might want to explore whether you might qualify for certain tax credits.  While federal tax credits for residential energy efficiency improvements expired at the end of 2021, some states, including Arizona, offer their own incentives to promote energy-efficient upgrades.

Phoenix homeowners can take advantage of these state-level programs to make their homes more energy-efficient while enjoying tax benefits.

The Arizona Department of Revenue offers tax credits for specific HVAC improvements that meet certain criteria. These credits encourage homeowners to invest in energy-efficient HVAC systems, which can significantly reduce energy consumption and lower utility bills over time.

Qualifying for Tax Credits

The 2023 tax deadline is coming up soon, and you may qualify for tax credits if you’ve made certain HVAC improvements to your home.  In Phoenix, homeowners must meet the following eligibility requirements:

  1. Energy Efficiency Ratings: The HVAC replacement system must meet or exceed certain energy efficiency standards set by the program. This often involves selecting equipment with high Seasonal Energy Efficiency Ratio (SEER) ratings for air conditioners and high Annual Fuel Utilization Efficiency (AFUE) ratings for furnaces.
  2. Installation by Certified Professionals: Licensed and certified professionals should install your new HVAC replacement system to ensure it complies with safety and performance standards.Work with a reputable HVAC contractor like Chas Roberts to be sure that your installation meets all necessary requirements.
  3. Documentation: Homeowners need to keep detailed documentation of their HVAC upgrades, including invoices, receipts, and manufacturer certifications. This documentation is required to claim your tax credits

Some programs may require homeowners to submit proof of residency in Phoenix or Arizona and provide evidence of property ownership.

Available Tax Credits

While specific tax credits for HVAC replacements and upgrades in Phoenix may vary from year to year, common incentives include:

  1. Arizona Energy Efficiency Appliance Rebate Program: This program offers rebates for the purchase and installation of energy-efficient appliances, including HVAC replacement systems. Homeowners can receive financial incentives for upgrading to qualifying HVAC equipment that meets energy efficiency standards.
  2. Arizona Solar and Wind Tax Credit: While not specific to HVAC systems, this tax credit provides incentives for renewable energy installations, including solar-powered HVAC systems. Homeowners who install eligible solar or wind energy systems may qualify for a tax credit based on the system’s cost.
  3. Utility Company Rebates: Some utility companies in Arizona offer rebates or incentives for energy-efficient HVAC upgrades. These programs aim to reduce energy demand during peak times and promote sustainable energy usage among consumers.

It’s essential for homeowners to research and understand the eligibility criteria, application process, and deadlines for each program to maximize their potential savings.

Claiming Tax Credits

To claim tax credits for HVAC replacements and improvements, Phoenix homeowners should follow these steps:

  1. Research Available Incentives: Start by researching available tax credits and incentives offered by the Arizona Department of Revenue and local utility companies. Understand the eligibility criteria, requirements, and deadlines for each program.
  2. Select An Energy-Efficient HVAC Replacement: Choose HVAC equipment that meets or exceeds energy efficiency standards set by the programs. Look for ENERGY STAR certified products and consult with HVAC professionals to determine the best options for your home.
  3. Keep Documentation: Maintain detailed records of your HVAC purchase and installation, including invoices, receipts, and product certifications. These documents are essential when claiming tax credits and may be required for verification.
  4. Consult with Tax Professionals: If you’re unsure about eligibility or the tax credit claiming process, consider consulting with tax professionals or accountants familiar with Arizona’s tax laws. They can provide guidance and ensure you maximize your tax benefits.
  5. Submit Tax Credit Claims: When filing your state taxes, include the necessary information and documentation to claim tax credits for your HVAC improvements. Follow the instructions provided by the Arizona Department of Revenue or your tax preparer to accurately report the credits.

It’s crucial to submit your tax credit claims accurately and on time to avoid missing out on potential savings.


As a Phoenix homeowner, taking advantage of tax credits for HVAC upgrades can lead to significant savings on your energy bills while contributing to a more sustainable future. By investing in energy-efficient heating and cooling systems, you not only enhance the comfort and value of your home but also reduce your environmental impact. Be sure to research available incentives, select qualifying HVAC equipment, and keep thorough documentation to maximize your tax benefits. With the right approach, you can enjoy a cooler home and lower your taxes in 2024 and beyond.

Remember, tax laws and incentives may change, so it’s essential to stay informed and take advantage of available programs while they’re available.

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This article is designed for informational purposes only and should not be used as tax advice. The information provided regarding the HVAC tax credit for 2023 is intended to offer a general overview and may not apply to all individual circumstances or reflect the most current legislative changes. Tax laws are complex and subject to frequent amendments, and the applicability of the information to specific situations may vary. We advise readers to seek the services of a qualified tax professional or financial advisor to obtain personalized, up-to-date advice that considers their particular financial situation and compliance with relevant tax laws. Relying solely on the information in this article for making financial or tax decisions is not recommended. Professional consultation is essential to ensure accurate and tailored tax guidance.