A quality HVAC system is essential for a comfortable and energy-efficient home, but it’s also a major investment. Everyone deserves the most effective comfort solutions available, which is why HVAC rebates are so important. They can help make sure high-efficiency furnaces, air conditioners and other equipment is more budget friendly.

HVAC efficiency standards are climbing next year, so now’s an excellent time to check out your options. A variety of companies, organizations and even government entities are extending rebates in 2023 to help everyone secure a new, high-efficiency HVAC system.

Receive a Tax Rebate by Installing a High Efficiency Furnace

Numerous manufacturers of high-efficiency furnaces extend rebates toward the cost of a new system. These furnaces feature energy-efficient components like variable-speed blower motors, which let the thermostat fine-tune how much heating is produced. It’s a great way to lower energy use overall. Local utilities also offer furnace rebates as less energy use translates to less strain on the local energy grid.

The government’s ENERGY STAR® program is also helpful for acquiring a furnace rebate. You can submit your ZIP Code to see which rebates you could be eligible for. Equipment featuring the ENERGY STAR® rating means it fulfills your region’s standards for energy-efficient comfort.

Air Conditioner Rebates

A lot of of the same rebates for high-efficiency furnaces are also applicable to air conditioners. You can save hundreds on new installation for a system from a leading brand like Lennox. Just talk to your local utility companies to find out which makes and models are suitable. What’s more, you can often join federal and local rebates for even more savings. Don’t hesitate to learn what's out there, because it can quickly add up to 10% of a new, high-efficiency air conditioner

Available Rebates for Smart Thermostats

A smart thermostat is an incredibly valuable improvement to your home comfort system. With intelligent programming, you can fine-tune the daily schedule. Utility companies highly value this level of efficiency, and so most extend rebate programs for new smart thermostats. After some time, these rebates effectively permit you to get a free smart thermostat!

Your utility companies also create programs where they swap reduced rates for the capacity to access your thermostat during peak energy use. This helps minimize strain on the grid, namely when heat waves or cold fronts come through. When participating in this program, your thermostat can automatically be changed by a few degrees.

Additional Incentives: High Efficiency Products and Home Improvement Credits

Slightly different from rebates, tax credits are also offered for the purchase and installation of energy-efficient HVAC equipment. For example, the Inflation Reduction Act restarted a program in 2021 that provided credits for up to 10% of the project’s cost. The revised credits are now worth 30% of the cost and can be claimed each year rather than only once. These credits are eligible for a much wider variety of projects, such as home energy audits, electrical, insulation, ventilation, and even your doors and windows! The programs are fashioned to share the most benefits for lower-income households, maximizing the improvements to HVAC efficiency across the country.

New Legislation for Heat Pump Rebates

The recently passed Inflation Reduction Act included separate legislation called the High-Efficiency Electric Homes and Rebates Act, or HEEHRA. This incentive is particularly geared toward heat pump technology, which transfers heat instead of producing it by combusting fuel. To persuade more people to transition to this energy-efficient comfort system, these rebates are significantly higher than incentives for AC systems and furnaces.

If the household’s income is lower than 80% of the local median, you can use the rebates to cover 100% of the costs of a new heat pump. Households that meet 80-150% of the average income can cover 50% of equipment and installation costs.