2023 HVAC Rebates- Local and Federal
Florida is getting greener every year in terms of energy efficiency.
To fuel eco-friendliness, the State of Florida is offering attractive
rebates on HVAC equipment. Energy companies are pitching in too.
Here is a look at Florida energy rebate programs you can
take advantage of and federal tax credits.
Some Information is not available yet for Local 2023 rebates
This page will be updated as the information comes available
Florida Power and Light Residential Energy Efficiency Program
To qualify for a $150 air conditioning rebate:
Purchase and install a complete new straight cool/air cooled high-efficiency A/C system. This includes both indoor and outdoor A/C units.
New unit must have a SEER rating of 16 or 17.
New unit must be installed in a single-family detached home.
Purchase your A/C system through a Participating Independent Contractor (PIC).
Duke Energy Residential HVAC Rebate Program 2023
Rebates for high-efficiency heat pumps
Duke Energy offers the following rebates when you install a new high-efficiency heat pump:
Incentives for single family homes:
OUC Residential HVAC Rebate Program
Rebates for high-efficiency heat pumps
Heat Pump (From $90-$1,630 - see TON/SEER Matrix)
Older central air conditioner units can be very costly to operate and maintain. New units are more efficient and use less energy while lowering your electric bill. Annual energy savings for a 15 Seasonal Energy Efficiency Rating (SEER) or greater unit could be up to 30 percent when compared to a 12 SEER unit. This rebate is applicable to residential improvements projects. New Heat Pump system must be rated 15 SEER or higher. View Ton/SEER Matrix to the right to calculate the rebate amount.
Please have the contractor provide a copy of the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) Certificate or the AHRI Reference number. Model numbers for both the indoor and outdoor unit must be included on the invoice.
Federal Tax Credits:
Are there incentives for making your home energy efficient by installing alternative energy equipment? (Updated 12/30/2022)
This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2032.
A. Yes, the residential energy efficient property credit allows for a credit equal to the applicable percent of the cost of qualified property. Qualifying properties are solar electric property, solar water heaters, geothermal heat pumps, small wind turbines, fuel cell property, and, starting December 31, 2020, qualified biomass fuel property expenditures paid or incurred in taxable years beginning after that date. Only fuel cell property is subject to a limitation, which is $500 with respect to each half kilowatt of capacity of the qualified fuel cell property. Generally, this credit for alternative energy equipment terminates for property placed in service after December 31, 2023. The applicable percentages are:
In the case of property placed in service after December 31, 2019, and before January 1, 2023, 26%.
In the case of property placed in service after December 31, 2022, and before January 1, 2024, 22%
Equipment that qualifies for energy tax credits
Installing alternative energy equipment in your home such as solar panels and geothermal heat pumps, can qualify you for a credit equal to 30% of your total cost. The credit is available through the end of 2019. After that, the percentage steps down each year and then stops at the end of 2021.
Qualifying equipment includes solar-powered units that generate electricity, energy-producing wind fans and geothermal heat pumps. The credit is only available for improvements you make to your primary home. If you are adding solar panels to your summer house, you won’t get a tax break for it.
Filing for energy tax credits on your tax return
To claim the credit, you'll need IRS Form 5695. Work out the credit amount on that form then enter it on your 1040. You should keep your receipt for the appliance as well as the Manufacturer's Certification Statement, so you can prove your claim if the IRS ever conducts an audit.
Just remember, you can reduce your taxes with the energy tax credit, but you can't get money back. In other words, if you owe $2,200 and your credit is $3,400, you can only claim $2,200 this year. However, with the credit involving turbines and heat pumps, the remaining $1,200 could be carried over to the following year.
n addition to limits on the amount of credit you can claim for any particular equipment installation or home improvement, there are annual aggregate limits. The overall total limit for an efficiency tax credit in one year is $3,200. This breaks down to a total limit of $1,200 for any combination of home envelope improvements (windows/doors/skylights, insulation, electrical) plus furnaces, boilers and central air conditioners. Any combination of heat pumps, heat pump water heaters and biomass stoves/boilers are subject to an annual total limit of $2,000. (Note: ENERGY STAR certified geothermal heat pumps are eligible for a separate tax credit and not counted against these limits.)
CHECK BACK, as we will update this list as Rebates and Incentives become available
A complete list of local and utility company rebates can be found at DsireUSA.
Tax Federal Incentives/Rebates 2023
HVAC industry alerts are now warning of significant price increases for 2023. The cooling equipment components will perform higher to achieve a high-efficiency rating. Leading to lower energy bills, improved air quality, higher quality equipment that will last longer.
Federal Tax Credits
Homeowners who install eligible systems before January 2023 will receive a 26% tax credit. Any systems installed after January 2023 and before January 2024 will earn a 22% tax credit. After the system installation, fill out the IRS Form 5695 and submit it with your tax returns to receive the credit.
2022 Inflation Reduction Act
On August 16, 2022 the U.S. Government signed into law the Inflation Reduction Act (IRA) in an effort to reduce greenhouse gas (GHG) emissions by 40% by 2030. 3 programs to further this law are as follows:
Energy Efficient Home Improvement Tax Credit (25C)
High Efficiency Electric Home Rebate Program (HEEHRP)
• The HOMES Rebate Program
The 25C Energy Efficiency Home Improvement tax credit
This home improvement tax credit has been around for a while, but the Inflation Reduction Act increases the value of the tax credit by 20% and makes it possible for you to receive a benefit each year. (Originally, this tax credit was limited to 10% of your project costs but has increased to up to 30% under the new legislation.)
The value of the tax credit is annually capped at the following:
$2,000 for electric and gas heat pumps and heat pump water heaters
$1,200 for weatherization installs (like air sealing and insulation work) and electrical panel upgrades that allow for the use of a qualified energy-efficiency upgrade
A few essential notes about the tax credit you should know:
Your tax credit will cap at $2,000 annually.
The tax credit is only available to offset your tax liability. That means you’ll only be able to claim it if you owe some money back in taxes.
There are no income requirements for this tax credit, and it cannot be combined with other federal programs.
HEEHRA- The High-Efficiency Electric Home Rebate Act
Please be aware that the policy provisions to implement HEEHRA are not yet in place. Federal agencies including the IRS, EPA, and DOE will create the rules and regulations for distributing the money but the individual states will be directly involved in implementing the program.
The State Energy Office will be responsible for setting up your state’s HEEHR program which focuses on providing rebates to households with a total annual income that’s less than 150% of the local median income. (The local median income for your area will be defined and determined by your state.)
The program’s maximum rebate values include:
$8000 for an electric heat pump HVAC system
This tax credit is good for 30 percent of the total cost of what you paid for your heat pump, including the cost of labor, up to $2,000; and it would be available through the end of 2032.
It’s important to remember that the eligibility for these rebates is income-based and the rebate values aren’t guaranteed for every household.
Who Qualifies for a Heat Pump Tax Credit or Rebate
For the tax credit program, the new incentives will apply to equipment installed on January 1, 2023 or later. As for the rebate programs- The rebates depend on income. Specifically:
If your household income is less than 80 percent of your state’s median household income, you are eligible for 100 percent of the rebates available. So if you spend $10,000 on a heat pump and a heat pump water heater, you could get $9,750 back, depending on the specifics of your state’s rebate program.
If your household income is 80 percent to 150 percent of your state’s median income, you are eligible for 50 percent of the rebates available. So for a $10,000 heat pump and heat pump water heater, you could get $4,875 back, depending on specifics.
If your household income is more than 150 percent of your state’s median income, you are not eligible for these rebates. (3X the very low income level for family size, use chart below)
The HOMES Rebate Program
Home Energy Performance-Based, Whole-House Rebates (HOMES)
Funding from IRA will support individual state-run HOMES Rebate programs across the country to encourage performance-based residential energy efficiency retrofits. Rebates are doubled for low- and moderate-income households (individuals making less than 80 percent of area median income), so that Americans with the highest energy burdens can better-afford upgrades. In addition to robust rebates for LMI households, state HOMES programs can also reward those who work on energy efficiency in underserved communities.
IRA prohibits combining HOMES rebates with any other Federal grant or rebate – including the new $4.5 billion High-Efficiency Electric Home Rebate Program. Still, IRA does not prohibit combining HOMES rebates with federal tax credits like 25C (Energy Efficient Home Improvement Credit), as well as state or utility rebate programs, which could allow “incentive stacking” to draw more households to pursue home performance upgrades. Funding will be distributed by DOE to states via a set formula, weighted by population and state energy consumption. If any states do not apply for and receive HOMES funding, unused funds will be redistributed to states operating HOMES rebate programs as early as 2024. HOMES rebates will also be administered by the states, with details also to be set in the coming months.
Under HOMES, a project’s energy savings will have to be documented through a method approved by DOE. Generally, a homeowner who achieves energy savings of between 20% and 35% will be eligible for a rebate of up to $2,000, and a homeowner who achieves energy savings of more than 35% will be eligible for a $4,000 rebate; the program will be slightly different for projects in which energy savings are measured in kilowatt-hours, or kWh equivalents, and the required minimum energy savings for those projects is 15%.
The owners of multifamily buildings will also be eligible for the HOMES program, with the same energy-savings requirements and rebate caps per unit.
HOMES rebates will be available for households of any income level, although low- and moderate-income households could be eligible for enhanced rebates, as could the owners of multi-family buildings in which at least 50% of households have low or moderate incomes.
Any additional cash rebates, if you are eligible, won’t be around for another 12–24 months. But why does it take so long for the new program rollout? Well, first, funds are allocated from the federal government to the state government. Then the state government has to create new programs to oversee the funds. This process just takes time.