There’s no doubt that purchasing a new heating or cooling system for your home can be quite expensive. In fact, many homeowners end up financing the purchase of their systems due to its high upfront cost. Fortunately, there are various HVAC rebates that homeowners can take advantage of to reduce the overall cost of their new HVAC systems, and many of them are wrapping up for the 2024 calendar year.
What Are HVAC Rebates?
When people talk about discounts for purchasing a new HVAC system, they typically use the term “rebate.” However, it’s important to note that there are both rebates and tax credits that homeowners can take advantage of. A rebate is typically an upfront discount that you can receive when you buy a new heating or cooling system. In some cases, such as with utility rebates, you may have to send in a claim form proving the purchase of your new system in order to obtain the rebate funds.
When it comes to a tax credit, the process is much different. You don’t receive credit at the time of the purchase. Rather, you have to wait until taxes are due for the year that you purchased the unit. You will file for the credit as part of your regular taxes and will receive a credit from the federal government in the amount that you are approved for. It’s crucial to note that this credit will be put toward any balance you owe to the IRS before it issues a refund for any credit above what you owe them.
Who Offers Rebates and Tax Incentives?
There are a couple of different places that may offer rebates and tax incentives for homeowners who purchase new HVAC systems. One of the most common places to get a rebate is through the system manufacturer. Most HVAC manufacturers will offer promotional rebates during the spring and fall months to help entice homeowners to upgrade their old systems. Your chosen HVAC professional can help you determine if there are any rebates from the manufacturer that you can take advantage of.
Another common place you may find a rebate is with your local utility company. It’s pretty standard for utility companies to offer a small rebate to homeowners who invest in more energy-efficient heating or cooling systems. Most of these rebates require you to fill out a claim form and send in proof of the purchase in order to get the rebate funds. Lastly, most tax credits are given on the federal tax level. However, some local and state governments will also offer tax credits to homeowners who invest in new HVAC systems.
HVAC System Type Affects Eligibility for Rebates and Credits
When looking into potential HVAC rebates and tax credits, it’s important to note that the type of HVAC system that you purchase will influence the amount that you’re eligible to get back. Generally, most incentives come with systems that have the highest operating efficiencies.
For example, you’re likely to get more money back when you invest in a high-efficiency furnace as compared to a standard-efficiency furnace. Heat pumps tend to bring in more incentives due to their high operating efficiency. You can better discover what systems make you eligible for different rebates and tax incentives by looking at the Rebate Finder database on ENERGY STAR’s website or by asking your local HVAC system installer.
Energy-Efficient Home Improvement Tax Credit
This tax credit is very common for homeowners who purchase ENERGY STAR-rated systems to use. Eligible equipment can provide you with a credit in the amount of 30% of the total cost of your new HVAC system. The maximum credit amount is $600 for a new air conditioning system and $2,000 for a new heat pump.
High-Efficiency Electric Home Rebate Act (HEEHRA)
Part of the Inflation Reduction Act of 2022, HEEHRA offers significant tax credits for homeowners who install high-efficiency HVAC systems. To be eligible, what must make 150% of the area’s median income or less. Those who are eligible can receive a tax credit of up to $8,000 for heat pumps and up to $840 for electric HVAC systems.
Reliable HVAC System Installation Service
Apollo Heating & Air Conditioning offers expert HVAC system installation services for the entire Bellevue, NE area. Our HVAC technicians can also assist with all your air conditioning, heating, ductwork, commercial HVAC, indoor air quality, duct cleaning, smart thermostat, and new construction needs. Call our friendly staff today to book your next service consultation.
