Rebates and Credits
Federal Tax Credits
Tax credit period: February 17, 2009 to December 31, 2010
On February 17, 2009, President Obama signed a stimulus bill that included a HVAC tax credit incentive. Congress set the maximum tax at 30% of the price of the installation with the maximum tax credit capped at $1500 to help stimulate energy conservation through the installation of high efficiency heating and cooling systems.
The tax credit is available to homeowners who install systems at their primary residence. Qualifying systems must meet certain minimum efficiency standards.
| System Type |
SEER |
HSPF |
EER |
COP |
| Split System Heat Pump |
15.00 |
8.5 |
12.5 |
n/a |
| Split System Straight Cool |
16.00 |
n/a |
13.0 |
n/a |
| Package Heat Pump |
14.00 |
8.0 |
12.0 |
n/a |
| Package Straight Cool |
14.00 |
n/a |
12.0 |
n/a |
| Geothermal Heat Pump (closed loop) |
n/a |
n/a |
14.1 |
3.3 |
| Geothermal Heat Pump (open loop) |
n/a |
n/a |
16.2 |
3.6 |
| Geothermal Heat Pump (direct expansion) |
n/a |
n/a |
15.0 |
3.5 |
Note; There is no maximum cap on geothermal heat pumps
To claim your Federal Tax Credit you will need a copy of the original invoice, an ARI Certificate of Performance (can be obtained at
www.ahridirectory.org) and complete IRS form 5695. File these documents with your 2010 federal income tax form.
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.
Progress Energy
Rebate period:
Ongoing
Progress Energy rebates are applied for by the licensed contractor. The rebate will be credited to your electric bill. This usually takes 2-3 billing cycles
| Existing System |
Replacement System |
SEER |
HSPF |
Rebate |
| Straight Cool |
Heat Pump |
14.00 |
7.8 |
$250 |
| Straight Cool |
Heat Pump |
15.00 |
8.0 |
$350 |
| Heat Pump |
Heat Pump |
14.00 |
7.8 |
$100 |
| Heat Pump |
Heat Pump |
15.00 |
8.0 |
$150 |
TECO
Rebate period: 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 |
Heat Strip Size |
Rebate |
| Straight Cool |
Heat Pump |
14.00 |
2kW/Ton |
$275 |
| Heat Pump |
Heat Pump |
14.00 |
2kW/Ton |
$125 |
Note: For systems less than 2.5 tons, a 5kW heat strip will be allowed
Manufacturer Rebates Many manufacturers offer rebates to promote their products during the slower months. Typically these rebates are offered during the spring and the fall.
Trane RebatesRebate period:
August 15, 2010 to October 31, 2010Trane offers manufacturer rebates on their XL product line systems when a variable speed air handler or furnace is included. The rebate is increased when a CleanEffects electronic air handler is included. The following is a outline of Trane’s rebate schedule.
| System |
Rebate |
With CleanEffects |
| XL20i |
NA |
NA |
| XL16i |
NA |
NA |
| XL15i |
NA |
NA |
York Rebates
Rebate period: NA
York offers manufacturer rebates on their high efficiency heat pump and straight cool systems providing the system includes two IAQ products and a matching York thermostat. The following is an outline of York’s rebate schedule.
| System |
Rebate |
| 18 SEER Affinty Series |
NA |
| 15 SEER Affinity Series |
NA |
| 14.5 SEER LX Series |
NA |