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HVAC Rebates &
Tax Credits

Federal Inflation Reduction Act credits, Texas utility rebates, and manufacturer promotions can stack to save $1,000-$5,000+ on qualifying HVAC installations. Here’s what’s available.

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Money-Saving Programs

Rebates & Tax Credits Available in 2026

The federal Inflation Reduction Act, Texas utility rebates, and manufacturer promotions can stack to reduce HVAC equipment costs by $1,000-$5,000+ on qualifying installations. Here are the active programs.

$2,000 Federal Heat Pump Tax Credit

Energy Star certified heat pump installations qualify for a 30% federal tax credit, capped at $2,000. Available through 2032 under the IRA. Documentation provided at installation.

$600 Federal Central AC / Furnace Credit

Energy Star certified central AC, furnaces, and air handlers qualify for 30% federal tax credit, capped at $600 per item. Stackable with the heat pump credit if installing both.

HEEHRA & HOMES Rebates (Texas)

Texas’s federally-funded High-Efficiency Electric Home Rebate program provides up to $14,000 in heat pump and electrification rebates for income-qualifying households. Application process opening 2026.

Local Utility Rebates

City of Cedar Grove and Pedernales Electric Cooperative offer seasonal rebates for high-efficiency HVAC, smart thermostats, and demand response participation. We track active programs and apply them automatically.

Manufacturer Seasonal Promotions

Carrier, Trane, Lennox, and Rheem run seasonal promotions (typically spring and fall) offering $500-$1,500 instant rebates on qualifying systems. We pass these through directly — not held back as margin.

Smart Thermostat Rebate

Pedernales Electric typically offers $50-$100 rebates on Energy Star smart thermostats (Nest, ecobee, Honeywell). Most are claimable directly through the utility within 30 days of installation.

How We Make This Easy

Documentation & Filing Help

Tax credits and rebates only count if you actually file for them. Most homeowners leave money on the table because the paperwork is annoying. We’ve made this part of every installation:

  • Energy Star certification documents for federal tax credits, included in your project file
  • AHRI certificate showing the matched-system efficiency rating — required for some manufacturer rebates
  • Pre-filed utility rebate applications for local programs — we submit them on your behalf when allowed
  • Tax form preparation summary showing exactly what to enter on Form 5695 (Residential Energy Credits) at tax time
  • Manufacturer rebate submission — we file these with the manufacturer within the required window so they don’t expire

The result: most customers get $1,000-$3,000 in stacked rebates and credits without having to track down paperwork themselves.

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