Upgrading your HVAC system or installing a new heat pump is a significant investment that will keep your home cool in the summer.
Did you know there are federal and state incentives that can help offset the cost of a new unit?
These programs are designed to encourage energy efficiency and reduce the environmental impact of heating and cooling systems. Before you make your purchase, it’s worth exploring the incentives available to you. Here’s what you need to know about these programs and how they can benefit you.
Federal HVAC Incentives
At the federal level, several programs promote energy-efficient home improvements, including HVAC systems and heat pumps.
One of the most notable is the Energy Efficient Home Improvement Tax Credit, which allows homeowners to claim a tax credit for qualifying HVAC upgrades. This program encourages the installation of systems that meet high energy efficiency standards, such as ENERGY STAR-certified heat pumps, furnaces and air conditioners.
Under this program, homeowners can claim up to 30 precent of the cost of certain energy-efficient improvements, including HVAC installations, with a maximum cap depending on the type of system. For example, heat pumps often qualify for higher incentives due to their efficiency and environmental benefits.
Additionally, the High-Efficiency Electric Home Rebate Program offers rebates for low- and moderate-income households installing energy-efficient HVAC systems. These rebates can significantly reduce upfront costs, making upgrades more accessible for homeowners.
State HVAC Incentives
Many states offer their own incentives to promote energy efficiency. These programs vary but often include rebates, tax credits or low-interest financing for homeowners who install qualifying HVAC systems or heat pumps.
For instance, some states partner with local utility companies to provide rebates for upgrading to high-efficiency systems. These rebates are typically based on the size and efficiency of the system being installed. In some cases, utility companies even offer free energy audits to help homeowners identify the best upgrades for their homes.
To find out what incentives are available in your state, visit the Database of State Incentives for Renewables and Efficiency (DSIRE). This comprehensive resource lists all federal and state programs, making it easy to determine what incentives you can receive.
Why Take Advantage of These Incentives?
- Lower Upfront Costs: Federal and state incentives can significantly reduce the initial cost of purchasing and installing a new HVAC system or heat pump. This makes it easier for homeowners to invest in energy-efficient upgrades.
- Long-Term Savings: Energy-efficient HVAC systems and heat pumps use less energy, which means lower utility bills over time. Combining these savings with upfront incentives makes upgrading a smart financial decision.
- Environmental Benefits: By choosing an energy-efficient system, you’re reducing your carbon footprint and contributing to a cleaner, greener future. Incentives make it more affordable to make environmentally friendly choices.
- Increased Home Value: Energy-efficient upgrades can increase your home’s value, making it more attractive to potential buyers. Incentives make these upgrades more accessible and cost-effective.
Call HVAC 911 Today
Before you buy a new HVAC system or heat pump, explore the federal and state incentives that can save you money. Our affiliated licensed, bonded, and insured HVAC contractors are experts in energy-efficient installations and can help you maximize your savings.
They employ highly qualified service technicians who receive over 10,000 hours of training and undergo rigorous background checks. Call HVAC 911 today for trusted referrals and expert service!
