A dependable 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 beneficial. They can help ensure high-efficiency furnaces, air conditioners and other equipment is more budget friendly.

HVAC efficiency standards are climbing next year, so now’s an ideal time to explore your options. Different companies, organizations and even government entities are extending rebates in 2023 to help everyone procure a new, high-efficiency HVAC system.

Receive a Tax Rebate by Installing a High Efficiency Furnace

Lots of manufacturers of high-efficiency furnaces extend rebates for a new system. These furnaces incorporate energy-efficient components like variable-speed blower motors, which enable the thermostat to optimize how much heating is produced. It’s an easy way to reduce energy use overall. Local utilities also offer furnace rebates as less energy use results in less strain on the local energy grid.

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

Rebates for Air Conditioning Systems

Many of the same rebates for high-efficiency furnaces are also suitable for air conditioners. You can save hundreds on new installation for equipment from a top brand like Lennox. Just check with your local utility companies to verify which makes and models are suitable. In addition, you can easily bundle federal and local rebates for even higher savings. Don’t hesitate to find out what's all available, because it can quickly add up to 10% of a new, high-efficiency air conditioner

Potential Rebates for Smart Thermostats

A smart thermostat is an especially valuable addition to your home comfort system. With intelligent programming, you can fine-tune the daily schedule. Utility companies can benefit from this kind of efficiency, and so most extend rebate programs for new smart thermostats. Over time, these rebates virtually permit you to get a free smart thermostat!

These utility companies also offer programs where they provide lower rates for the capacity to control your thermostat during peak energy use. This helps reduce strain on the grid, namely when heat waves or cold fronts arrive. When enrolled in this program, your thermostat can automatically be corrected by a few degrees.

Other Incentives: Tax Credits for Energy-Efficient Equipment and Home Improvement Projects

Somewhat different from rebates, tax credits are also available for the purchase and installation of energy-efficient HVAC equipment. For example, the Inflation Reduction Act reactivated a program in 2021 that offered 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 instead of only once. These credits are obtainable for a much larger variety of projects, such as home energy audits, electrical, insulation, ventilation, and even your doors and windows! The programs are designed to provide 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 contained separate legislation referred to as 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 burning fuel. To motivate more people to convert to this energy-efficient comfort system, these rebates are substantially higher versus incentives for AC systems and furnaces.

If the household’s income is below 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 pay for 50% of equipment and installation costs.