One of the challenges many homeowners face when looking to become more energy-efficient is the cost.This is where rebates and a tax credit for hvac replacement are really helpful.  Energy star certified systems are considered to be top of the line systems in energy efficiency. However, while those systems can save you money through efficiency over time, the initial cost can be quite pricey. Thankfully there are two programs homeowners can take advantage of to help balance out their investment. 


Things Every Homeowner Should Be Aware of Regarding HVAC Tax Credit 2022

Every year homeowners pay taxes to the IRS. Tax credits, typically claimed on federal income tax returns, are made from eligible purchases that reduce the amount owed in taxes. These programs are for encouraging homeowners to make energy efficient investments to their home.


The program for Nonbusiness Energy Property credits (25C) is extending until December 31, 2022 for qualifying HVAC systems installations.Furthermore, the Energy Efficient Home Improvement Credit (amended 25C) will begin in January 2023 and will last through 2032. In addition, these tax credits are available for every household with qualifying installations.


Qualifying types of high-efficiency HVAC equipment includes:

  • Heat pumps and heat pump water heaters
  • Furnaces, boilers, and central AC, and other energy-efficient HVAC systems


The 25C program provides up to $600 in credits for each qualifying air conditioner and gas-powered furnace with an annual cap of $1,200. What’s more, qualifying heat pump systems, heat pump water heater, or a boiler can reach up to $2,000 in tax credit. While the 25C program can’t combine with other federal programs, homeowners can take this opportunity to buy a better system. Be sure to check to see if you qualify for state-sponsored rebates as well!


HVAC Rebates 2022

According to Lennox, $4.5B was given too the states for state energy offices to dedicate to this rebate program. The High-Efficiency Electric Home Rebate Program (HEEHRP) provides HVAC rebates (up to $14,000) for low and moderate income households for:

  • installing heat pumps with Energy Star® certification – up to $8,000
  • Installing electrical panel upgrades – up to $4,000
  • updating home insulation and seals – up to $1,600
  • updating home electrical wiring – up to $2,500


Who Qualifies for HVAC Rebates?

The volume of rebates turned in and the total funds available determines the lifespan of the program. In addition, depending on the households’ average income, the percentage and eligibility of the HVAC rebate can change. The HEEHRP covers:

  • 100% of the system purchase price for low income households.
  • 50% of the system purchase price for moderate income households (within 80% to 150% of your area’s average income)


Benefits of Investing in ENERGY STAR® HVAC Systems

HVAC systems are evaluated for their effectiveness and efficiency. HVAC equipment within the ENERGY STAR® system, must operate while meeting or surpassing efficiency ratings in the federal guidelines. If you’re looking to replace an older furnace, EnergyStar rated hvac systems can reduce operation costs up to 40-50%! 


Doubling Your Money with a Tax Credit for HVAC Replacement 2022

Typical energy tax credits are for home improvements which helps increase the energy efficiency of your home. By following the correct procedures and filing tax credits, homeowners can receive twice the amount of savings. Besides the first through the tax credits, the second is through the energy efficiency upgrades for years to come! Need help or have questions about how to make your home more energy efficient? Contact our professional hvac technicians! We are here to help you discover which system would best fit your needs and save you money!