A qualifying central air conditioner installed and placed in service in 2025 could qualify for a federal tax credit worth 30% of eligible costs, up to $600. The federal Energy Efficient Home Improvement Credit under Internal Revenue Code §25C is no longer available for property placed in service after December 31, 2025, so an air conditioner installed in 2026 does not qualify for this credit.
Does a new central air conditioner qualify for a tax credit?
For 2025, central air conditioners could qualify under the federal Energy Efficient Home Improvement Credit, also known as §25C, if the equipment and installation met the applicable requirements. The credit was 30% of eligible project costs, capped at $600 for central AC. See ENERGY STAR’s central air conditioner tax-credit guidance.
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The $600 central-AC cap was part of the general $1,200 annual limit for relevant home-efficiency improvements. It was not the separate $2,000 limit that applied to certain heat pumps and biomass equipment. If you claimed other eligible improvements in the same tax year, they could affect the amount available under the annual limits. The IRS explains the categories and limits in its Energy Efficient Home Improvement Credit guidance.
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The required efficiency depended on whether the central AC was a split or packaged system. For 2025, ENERGY STAR lists these minimums:
#1 Best Overall
- BEST FOR SMALL ROOMS: Cools up to 150 sq ft efficiently with 5,000 BTU cooling power. Ideal for bedrooms, home offices, dorm rooms, workshops, and studio apartments. Compact 16.4" W x 13.4" D x 12.6" H design fits tight spaces.
- QUIET OPERATION - Quieter than many older window AC units, with 2 cooling modes (low 52 dBA for nighttime, high 56 dBA for rapid cooling) and 2 fan speeds for personalized comfort. Simple mechanical controls mean no annoying digital beeps.
- SIMPLE, RELIABLE MECHANICAL CONTROLS: Easy-to-use dials for temperature and fan speed—no Wi-Fi, apps or complex setup required. 10 temperature settings let you dial in your perfect comfort level. Auto restart after power outages.
- LOW MAINTENANCE & ENERGY SMART: No manual draining under normal conditions. Washable, reusable filter for easy care. Low 440W power draw helps reduce energy costs compared to older, inefficient units.
- EASY DIY INSTALLATION: Fixed chassis installs easily and fits double-hung windows 27.125"–36" wide and 13.375" high minimum. EZ Mount kit with foam insulation included. Backed by 1-year GE limited warranty for peace of mind.
| Central AC configuration | Minimum SEER2 | Minimum EER2 |
|---|---|---|
| Split system | 17.0 | 12.0 |
| Packaged system | 16.0 | 11.5 |
These thresholds apply to the qualifying system, not simply to a brand, an ENERGY STAR label, or one component such as the outdoor unit. Confirm that the complete installed equipment combination meets the applicable requirement and CEE tier for the year it was placed in service. The ENERGY STAR requirements page provides the central-AC criteria; the IRS also describes the applicable efficiency requirements in its credit guidance.
Can I claim the air conditioner credit if it was installed in 2025?
Timing turns on when the original installation was complete and the property was placed in service, not just when you paid for or ordered the equipment. The 2025 rules apply to qualifying property placed in service during 2025. A payment made in 2025 for a system not installed and placed in service until 2026 does not meet that deadline.
Rank #2
- Effortless Cooling: Achieve optimal comfort with customizable temperature settings and two fan speeds; Effortless Temperature Control helps to maintain your preset temperatures for consistent comfort
- Easy Maintenance: Keep your air conditioner running efficiently with the easy-to-clean washable filter, designed to capture dust from the air for long-lasting performance
- Undisturbed Comfort: Experience a peaceful home environment with a quiet performance at 52 dBA – ideal for bedrooms or small spaces up to 150 sq. ft.
- Effortless Convenience: Benefit from the Auto Restart feature, which automatically restores the unit's previous settings once power is restored to the window air conditioner
- Hassle-Free Operation: The extra-long three-prong power cord eliminates the need for extension cords, while the adjustable side panels easily extend to best fit your window, ensuring a secure installation with optimal efficiency and airflow
The IRS’s Instructions for Form 5695 (2025) say costs are treated as paid when original installation is complete and state that the credit cannot be claimed for property placed in service after December 31, 2025.
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The residence had to be in the United States and used as a residence by the taxpayer. This could include an eligible second home; ENERGY STAR also notes that a renter who pays for eligible improvements may qualify. A landlord generally cannot claim this credit for a rental property the landlord does not use as a residence. Check the ENERGY STAR eligibility guidance and the IRS’s 2025 Form 5695 instructions for the rules that apply to your circumstances.
Rank #3
- 6,000 BTU COOLS ROOMS UP TO 250 SQ FT – Electronic window air conditioner efficiently cools bedrooms, home offices, dorm rooms and small apartments. Two-way air direction and multiple cooling modes (52 dBA low, 56 dBA high) let you customize comfort. Ideal for spaces approximately 10x25 feet.
- DIGITAL THERMOSTAT WITH REMOTE CONTROL – Precise temperature control from 64°F to 86°F via LED display and electronic thermostat. Full-function remote included for convenient across-the-room operation. Not WiFi or smart home compatible.
- ENERGY SAVER ECO MODE – Intelligent auto-cycling compressor maintains your set temperature while minimizing power consumption. Uses less energy compared to manual units that run continuously.
- 24-HOUR PROGRAMMABLE TIMER PLUS AUTO-RESTART – Schedule on/off times up to 24 hours in advance to save energy overnight or when away. Auto-restart remembers your settings after power outages so you don't need to reprogram.
- EASY DIY WINDOW INSTALLATION – Fixed chassis design installs quickly in double-hung windows 27.125" to 36" wide and 13.375" high minimum. Includes EZ Mount kit with expandable side panels. Washable, reusable air filter with reminder indicator for easy maintenance.
How to report a 2025 central-AC credit
- Confirm the installation year. Verify that the original installation was complete and the system was placed in service by December 31, 2025.
- Check the complete system’s ratings. Confirm the split or packaged configuration, SEER2 and EER2 values, and applicable CEE tier using manufacturer documentation or the product lookup tools referenced by the IRS.
- Gather cost and manufacturer records. Keep invoices, installation records, equipment details, and the Qualified Manufacturer Identification Number (QMID) required for specified 2025 property.
- Use the 2025 tax form and instructions. Report the qualifying amount on Form 5695 (2025), following its line-by-line instructions. The central-AC credit entry is limited to $600, and eligible costs remain subject to the annual limits.
The IRS’s 2025 Form 5695 instructions contain the QMID and reporting requirements. A particular system’s eligibility depends on its configuration, ratings, installation date, residence use, qualifying costs, and manufacturer identifier.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Is the federal air conditioner tax credit still available in 2026?
No. The §25C credit does not apply to property placed in service after December 31, 2025. The IRS states this in its Fact Sheet 2025-05, dated August 21, 2025, and in the 2025 Form 5695 instructions. This end date concerns the federal credit discussed here; state, local, or utility incentives are separate and vary by location. ENERGY STAR recommends checking local programs, but availability and eligibility need to be confirmed with the relevant program.
Quick Recap
Best Value
- Customizable Cooling: Achieve optimal comfort with custom temperature settings, 6-way directional airflow, and three different fan speeds
- Easy Maintenance: Effortlessly adjust settings with the remote control and keep your AC unit working efficiently with Clean Filter alerts that notify you when it's time to clean the washable dust filter
- Energy-Efficient Performance: Save energy with Eco Mode while maintaining a comfortable temperature and reduce energy consumption with Sleep Mode, which gradually increases the temperature overnight
- Consistent Comfort: This window air conditioner operates at just 52 dBA, providing quiet cooling that makes it ideal for bedrooms or small spaces up to 250 sq. ft.
- Effortless Convenience: Set the 24-hour on/off timer to match your schedule and enable Dry Mode to remove excess moisture from the air, creating a more comfortable environment
Rank #4
- Customizable Cooling: Achieve optimal comfort with custom temperature settings, 6-way directional airflow, and three different fan speeds
- Easy Maintenance: Effortlessly adjust settings with the remote control and keep your AC unit working efficiently with Clean Filter alerts that notify you when it's time to clean the washable dust filter
- Energy-Efficient Performance: Save energy with Eco Mode while maintaining a comfortable temperature and reduce energy consumption with Sleep Mode, which gradually increases the temperature overnight
- Consistent Comfort: This window air conditioner operates at just 54 dBA, providing quiet cooling that makes it ideal for bedrooms or small living rooms up to 350 sq. ft.
- Effortless Convenience: Set the 24-hour on/off timer to match your schedule and enable Dry Mode to remove excess moisture from the air, creating a more comfortable environment
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