HVAC Rebates & Tax Credits

Federal Tax Credits
(Residential Clean Energy & Home Improvement)
Energy Efficient Home Improvement Credit: Claim 30% of costs (up to $3,200/year), including:
- Heat pumps, central ACs, furnaces, water heaters (up to $2,000/item)
- Insulation, windows, doors, audits (up to $1,200 total)
Residential Clean Energy Credit: Another 30% tax credit for solar, geothermal heat pumps, battery storage, etc., with no cap (until 2032)
ENERGY STAR Air‑Source Heat Pumps: Installed between 2023–2032, qualify for up to $2,000 credit
Se If You Qualify

California-Specific Rebates
(HEEHRA / TECH Clean CA)
State rebates: Eligible homeowners in LA can receive up to $8,000 toward heat pump HVAC systems.
- Up to $8k for incomes ≤ 80% AMI
- Up to $4k for incomes between 80–150% AMI
TECH Clean California offers an additional $1,000 per system ($2,000 max) rebate
Local & Utility Rebates in Los Angeles
LA-area utilities may offer $100–$3,000 in additional HVAC Rebates & Tax Creditsr for homeowners installing efficient heat pumps
These incentives stack with federal and state credits—total potential savings can reach $10,000+ on high-efficiency systems.
How to Maximize Your Savings
Bundle upgrades strategically:
Example: Combine insulation ($1,200 cap) with a heat pump ($2,000 cap) to claim up to $3,200 in a single tax year.
Stack rebates:
Combine federal, state, and local incentives for maximum financial impact.
Ensure equipment qualifies:
Must be ENERGY STAR certified and meet Qualified Manufacturer (QM) standards with PIN listings on IRS Form 5695
Claiming Credits & Rebates
Federal:
File form IRS 5695, include the QM PIN from your heat pump/AC.
State & Local:
Apply through TECH Clean California and your local utility’s rebate programs (paperwork typically handled by contractors).
Timing:
Work must be completed and paid by December 31, 2025, to qualify under current rules
Summary of Potential Savings (Example)
Upgrade | Federal Tax Credit | State Rebate | Utility Rebate | Total Savings |
---|---|---|---|---|
Heat Pump Installation | $2,000 | $8,000 | $1,500 | $11,500 |
Insulation Upgrade | $1,200 | - | $500 | $1,700 |
Total (~1 home project) | $3,200 | $8,000 | $2,000 | $13,200+ |

Next Steps
- Get an energy audit to identify eligible upgrades.
- Choose ENERGY STAR-certified HVAC or heat pump systems.
- Confirm rebate eligibility via your contractor, utility, and the TECH Clean portal.
- Keep receipts and documentation—submit with IRS Form 5695.
Bottom line: Los Angeles homeowners can tap into 30% federal tax credits, up to $8,000 in state rebates, and local utility incentives, leading to combined savings that often exceed the cost of installation. Contact our team to see if you qualify for HVAC Rebates & Tax Credits.