Offers, Rebates & Tax Credits
Find ways to save on your system with rebates, special offers, and tax credits, including credits from the Inflation Reduction Act (IRA).
Maximize your savings on a new HVAC system with rebates, tax credits, and special offers – including incentives from the Inflation Reduction Act. Your wallet will thank you.
What is the Inflation Reduction Act?
The Inflation Reduction Act (IRA) which was signed in August 2022, incentivizes and rewards homeowners who make energy-efficient home improvements, including installing an energy-efficient HVAC system.
For eligible equipment installed after Jan. 1st, 2023 through December 31st, 2025
The Energy Efficient Home Improvement Tax Credit (25C) is part of the Inflation Reduction Act (IRA) and offers incentives to eligible homeowners for purchasing qualifying equipment installed by 12/31/2025.
Homeowners who meet the requirements may be eligible to claim up to 30% of the installed cost of qualifying systems (up to $1,200 maximum) including:
- Up to $2,000 for qualified heat pumps
- Up to $600 for qualified air conditioners
- Up to $600 for qualified furnaces
- Up to $600 for electrical upgrades to enable heat pump installation
Note: The maximum 25C tax credit amount is $3,200 when a qualifying heat pump is included in the purchase.
Special offers in your area
How do I apply for a tax credit?
Subject to IRS regulations, tax credits apply as a direct reduction of taxes owed.
The IRS has directed taxpayers to use Form 5695 to calculate and file for their residential energy credits. Customers should consult with a tax professional to fully understand how the tax credits may apply to you, what you can do to obtain one, and for advice on tax preparation.
What are rebate programs?
In addition to tax credits, rebate programs offered by state programs and local utilities might be another way to save on HVAC systems.
Rebate programs vary by state and income. To learn more about rebate programs you might qualify for, talk to a representative from your state’s energy office.
Manufacturer Certificates
The below RunTru residential products qualify for a tax credit. Save these certificates for tax season and use
them when you file your federal taxes.
Split system heat pump
To be eligible for 2025 tax credits, you must meet 25C requirements based on system type and installed location:
- Split system in the south: 15.2 SEER2, 12.0 EER2, 7.8 HSPF2
- Split or packaged system in the north : 15.2 SEER2, 10.0 EER2, 8.1HSPF2, COP of 1.75 at 5F and heating capacity ratio >58% at 17°F/47°F or >70% at 5°F/47°F
FAQs
If a local rebate is available, the process for claiming the incentive could vary by program. You may be able to submit information directly online or perhaps download a form for submittal. Please review the information provided for the rebate program to understand the eligibility requirements and process.
The Energy Efficient Home Improvement Tax Credit (25C) is part of the Inflation Reduction Act (IRA) and incentivizes energy-efficient purchases. This tax credit incentive is available through 12/31/2025.
Beginning on 01/01/2023 and extending through 12/31/2025, the Energy Efficient Home Improvement Tax Credit (25C) allows homeowners to claim up to 30% of the costs of energy-efficient upgrades, up to an annual limit of $1,200. Other individual credit limitations include:
- Up to $2,000 for qualifying heat pumps (the one exceptions to the $1,200 limit)
- Up to $600 for electrical upgrades to enable heat pump installation
- Up to $600 for qualifying air conditioners and furnace
- Up to $150 for home energy audits
These energy credits are nonrefundable, meaning they allow taxpayers to lower their tax liability, but not to a value below zero.
Consult with your tax professional regarding eligibility.
Contact a tax professional to discuss additional questions you may have!
