Federal Tax Credits for HVAC
Under the Inflation Reduction Act of 2022, federal income tax credits for energy efficiency home improvements will be available through 2032. A broad selection of ENERGY STAR certified equipment is eligible for the tax credits. Taking advantage of tax credits, along with any available rebates, is a good way to help make the transition to a clean energy future more affordable.
Heat Pumps
Tax Credit: 30% of project cost up to $2,000
Expires: December 31, 2025
Details: This tax credit is effective for products purchased and installed between January 1, 2023 and December 31, 2025.
In general, all ducted heat pumps that have earned the ENERGY STAR label are eligible, as well as certified mini-split systems (non-ducted) with:
| Requirements | HSPF2 | EER2 | SEER2 |
|---|---|---|---|
| Ducted System (Trane) | >=7.8 | >=11.7 | >=15.2 |
| Mini Splits | >=9.5 | >=9 | >=16 |
Central Air Conditioners
Tax Credit: 30% of project cost up to $600
Expires: December 31, 2025
Details: This tax credit is effective for products purchased and installed between January 1, 2023 and December 31, 2025.
In general, all ducted heat pumps that have earned the ENERGY STAR label are eligible, as well as certified mini-split systems (non-ducted) with:
| Requirements | SEER2 |
|---|---|
| Split System (Trane) | >=15.2 |
| Packaged Systems | All ENERGY STAR Certified |
For additional information including customer requirements and/or to sign up, visit Energy Star. Clean heating and cooling.
Manufacturer Rebates
Many manufacturers offer rebates to promote their products during the year.
There are no manufacturer rebates available at this time.
Utility Rebates
Many utility companies offer rebates to encourage homeowners to install high efficiency heat pump systems. The rebates vary depending on the existing system and the efficiency of the replacement system.
Duke Energy
Period: Expired Ongoing
The rebate will be credited to your electric bill. This usually takes 2-3 billing cycles.
Single Family Homes
| Existing System | Replacement System | SEER | HSPF | OR | SEER2 | HSPF2 | Rebate |
|---|---|---|---|---|---|---|---|
| Straight Cool (Heat Strip) | Heat Pump | 16.8 | 9.0 | 16 | 7.5 | $1,000 | |
| Straight Cool (Heat Strip) | Heat Pump | 16 | 9.0 | 15.2 | 7.5 | $600 | |
| Heat Pump | Heat Pump | 16 | 9.0 | 15.2 | 7.5 | $500 | |
| Straight Cool (Heat Strip) | Straight Cool (Heat Strip) | 16 | 15.2 | $300 |
For additional information including customer requirements and/or to sign up, visit Duke Energy Rebates
TECO
Expires: Ongoing
TECO rebates are applied for and paid to the licensed contractor. The amount of the rebate is deducted from the invoice total at the time of purchase.
| Existing System | Replacement System | SEER | SEER2 | Rebate |
|---|---|---|---|---|
| NA | Heat Pump, Straight Cool (Heat Strip), or Mini Split | 17+ | 16.20+ | $550 |
| NA | Heat Pump, Straight Cool (Heat Strip), or Mini Split | 16+ | 15.20+ | $40 |
Additional information on the TECO Heating and Cooling Rebates page
