A well-designed HVAC system is essential for a comfortable and energy-efficient home, but it’s also a major investment. Every homeowner deserves the most productive comfort solutions possible, which is why HVAC rebates are so worthwhile. They can help ensure high-efficiency furnaces, air conditioners and other equipment is more affordable.

HVAC efficiency standards are going up next year, so now’s a great time to explore your options. Various companies, organizations and even government entities are offering rebates in 2023 to help everyone procure a new, high-efficiency HVAC system.

Receive a Tax Rebate by Installing a High Efficiency Furnace

Many manufacturers of high-efficiency furnaces extend rebates toward buying a new system. These furnaces feature energy-efficient components like variable-speed blower motors, which allow the thermostat to fine-tune how much heating is generated. It’s an easy way to reduce energy use overall. Local utilities also offer furnace rebates since less energy use translates to less strain on the local energy grid.

The government’s ENERGY STAR® program is also helpful for securing a furnace rebate. You can enter your ZIP Code to learn which rebates you may be qualified for. Equipment featuring the ENERGY STAR® rating means it satisfies your region’s standards for energy-efficient comfort.

Air Conditioner Rebates

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 leading brand such as Lennox. Just check with your local utility companies to find out which makes and models are eligible. In addition, you can easily bundle 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 cooling system

Potential Rebates for Smart Home Accessories Like Smart Thermostats

A smart thermostat is a particularly valuable upgrade to your home comfort system. With intelligent programming, you can optimize the daily schedule. Utility companies appreciate this kind of efficiency, and so most offer rebate programs for new smart thermostats. Over time, these rebates effectively permit you to get a free smart thermostat!

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

Additional Incentives: High Efficiency Products and Home Improvement Credits

A little different than rebates, tax credits are also available for the purchase and installation of energy-efficient HVAC systems. For example, the Inflation Reduction Act restarted a program in 2021 that supplied credits for up to 10% of the project’s cost. The new credits are now worth 30% of the cost and may be claimed every year instead of only once. These credits are available 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 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 targeted toward heat pump technology, which transfers heat instead of creating it by igniting fuel. To encourage more people to transition to this energy-efficient comfort system, these rebates are substantially higher compared to incentives for AC units and furnaces.

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