Tony here. A new 5-ton AC system is a big investment—and if you can get a break from Uncle Sam or your local utility, why wouldn’t you take it? Let’s walk through which R-32 systems qualify for tax credits and rebates, what paperwork you need, and how to make sure you get every dollar you’re owed.
📜 The Basics: What Are HVAC Tax Credits in 2025?
Thanks to the Inflation Reduction Act of 2022, homeowners who install energy-efficient HVAC systems can claim:
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Up to $2,000 in federal tax credits for qualifying heat pumps and AC systems
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Additional state-level incentives, utility rebates, and local programs
This falls under the 25C Nonbusiness Energy Property Credit section of the IRS tax code.
🔗 Reference: IRS Energy Efficient Home Improvement Credit
🌡️ Do R-32 Systems Qualify for These Credits?
Yes—but only if the system meets SEER2 and EER2 thresholds.
To be eligible for 25C federal tax credits:
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The AC system must be ENERGY STAR certified
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For split systems:
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SEER2 ≥ 16.0
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EER2 ≥ 12.0
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Most base 14.4 SEER2 units like Goodman’s GLXS4BA6010 do not qualify on their own for federal tax credits—but you may still qualify for:
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State rebates
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Utility cash-back programs
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R-32 refrigerant incentives
📌 Goodman models with SEER2 ratings of 16.0+ (e.g., GSXH5 series) may qualify.
✅ What to Look for on Your Unit’s Spec Sheet
| Requirement | Minimum Needed | Where to Find |
|---|---|---|
| SEER2 Rating | 16.0 or higher | Yellow Energy Guide label |
| EER2 Rating | 12.0 or higher | Manufacturer spec sheet |
| ENERGY STAR Certification | Yes | energystar.gov |
| AHRI Certified Reference # | Yes | AHRI Directory or invoice |
🔍 Use: AHRI Directory Lookup Tool
🏛️ State Rebates & Utility Incentives
Even if your 5-ton R-32 system doesn’t meet federal SEER2 requirements, you may still qualify for local rebates:
Popular Programs:
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California TECH Clean California: Up to $6,000 for heat pumps
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Mass Save (MA): Rebates for ENERGY STAR-rated central air conditioners
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NY Clean Heat (NY): Incentives for high-efficiency split systems
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Texas EmPOWER program: Utility rebates by utility provider (Oncor, CPS, etc.)
Search your ZIP: DSIRE Incentive Database
🧾 What Paperwork Do You Need?
To claim the federal 25C tax credit:
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AHRI Certificate of Product Ratings (downloadable at AHRI.org)
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Form 5695: Include it with your federal tax return
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Installation invoice showing:
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Date of installation
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Model & serial numbers
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System cost (labor + equipment)
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🔗 IRS Form: Download Form 5695
🧯 Does Using R-32 Help Qualify You?
Not directly. R-32 isn’t a qualification by itself.
But it helps in two ways:
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R-32 systems are more efficient, helping models meet SEER2 targets
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Some utilities now promote R-32 systems due to low GWP (~675)
Goodman is among the first major U.S. brands offering wide R-32 coverage.
Learn more: EPA Refrigerant Transition Resources
🧠 How to Maximize Your Savings
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Bundle incentives: Use federal, state, AND utility credits together
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Upgrade to a 16.0+ SEER2 model: The small price bump may net $2,000 back
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Get a certified installer: Many programs require licensed HVAC pros
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Document everything: Save AHRI certs, invoices, warranty docs
Tony Tip: Don’t throw out that yellow Energy Guide label. It might be worth two grand.
📞 Ask Before You Install
Before scheduling your install:
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Call your local utility and ask about rebates
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Ask your HVAC dealer if the system qualifies for 25C credits
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Confirm model numbers with AHRI or ENERGY STAR directory
Avoid surprises by verifying in writing. Programs change annually.
🏆 Example Goodman Units That May Qualify
| Model | SEER2 | ENERGY STAR | 25C Eligible? |
| GLXS4BA6010 | 14.4 | No | ❌ |
| GSXH506010 | 16.2 | Yes | ✅ |
| GVXC960605 | 17.2 | Yes | ✅ |
(Always verify current specs with AHRI and ENERGY STAR listings)
🔚 Final Word from Tony
If you’re running a 14.4 SEER2 5-ton system, you might not qualify for the $2,000 federal credit—but you’re not out of luck. Local and utility incentives still offer real savings.
Want to future-proof and grab the big credits? Consider upgrading to a 16.0 SEER2+ model with R-32. It’s a smart long-term move—just like keeping Tony in your corner.
In the next topic we will read about: Is a 5-Ton AC System Noisy? Noise Levels, Placement & What You Can Do
