Are There Any HVAC Rebates or Tax Incentives Available for Houston Homeowners?


Hands around a small white wooden home with stacks of quarters in front of it, on a white table.

The latest energy-efficiency home tax credits are a huge advantage to Houston homeowners who want to improve their HVAC systems, making their homes more comfortable and efficient. If you’re interested in the money-saving programs available for Texas homeowners, this blog post is for you.

Save on HVAC Installation With Tax Incentives

The Inflation Reduction Act of 2022 allows Texas homeowners to save up to 30% on a new central HVAC system, single or multi-zone heat pump, or new HVAC equipment that improves efficiency and outperforms existing systems.

If it’s time to upgrade your heating and cooling systems, now’s the perfect time. The available rebates and tax incentives could save you thousands of dollars when used in conjunction with a top HVAC installer’s expertise.

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Energy-Efficient Home Improvement Credit

Energy-efficient home improvement income tax credits are available for central air conditioning systems, furnaces, boilers, and heat pumps that meet high-efficiency requirements. The credits apply to equipment purchased and installed between Jan. 1, 2023, and Dec. 31, 2034.

These tax credits are substantially higher than those provided for energy-saving HVAC home improvements prior to 2023. Eligibility is tied to each unit’s energy efficiency.

As you research new equipment for your Houston-area home, keep these terms in mind:

  • SEER2: Seasonal energy efficiency ratio 2 is the standard AC efficiency rating. It’s calculated by dividing cooling output by input wattage over a three-month summer season.
  • EER2: Energy efficiency ratio 2 is the simplest AC efficiency measurement. It’s calculated by dividing the AC cooling capacity by the maximum electric input.
  • HSPF2: Heating seasonal performance factor 2 measures a heat pump’s energy efficiency throughout the heating season and is calculated by dividing the heating output by the electricity used to create it.
  • AFUE: Annual fuel utilization efficiency is the ratio of a boiler or gas furnace’s annual heat output compared to its total annual fuel consumed.

Understanding the Difference Between a Rebate & Tax Credit

Rebates are incentives offered by utility companies, manufacturers, or local governments that provide direct refunds upon the purchase of energy-efficient HVAC equipment. These rebates reduce the upfront cost of buying and installing a new system, making it an attractive option for immediate savings.

Tax credits are deductions applied to your income tax liability. They’re typically offered by federal or state governments as a reward for investing in energy-efficient technology. Unlike rebates, tax credits are claimed at tax time and can lead to substantial savings by lowering the total amount of taxes owed.

While both options encourage the adoption of eco-friendly HVAC systems, they operate differently and can be used in combination to maximize cost savings and energy efficiency.

How You Can Save With HVAC Rebates

There are various Texas energy rebate programs you can combine with tax incentives, making a new installation an affordable option.

  • The High-Efficiency Electric Homes Rebate Act: A 10-year rebate program for low- to moderate-income households that encourages switching to electric home appliances and systems. It offers up to $8,000 in rebates for heat pump installation and up to $14,000 as a maximum consumer rebate.
  • Homeowner Managing Energy Savings: A $4.3 billion program that offers up to $8,000 for installing energy-efficient projects like clean energy equipment and air quality solutions.
  • The State Energy Conservation Office: SECO offers a range of energy-efficient and renewable energy programs that significantly reduce costs.
  • Air-source heat pumps: The IRA provides point-of-sale rebates of 100% of the cost of equipment and installation costs of ENERGY STAR® heating and cooling heat pumps up to $8,000.

When you switch to high-efficiency ENERGY STAR equipment, you might also qualify for savings through your local utility company.

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Schedule an HVAC Installation With Horizon Air Solutions

At Horizon Air Solutions, we care about saving our customers money. Our quality HVAC services help you get the most efficiency out of your home’s heating and cooling systems while maintaining a consistently comfortable indoor environment.

We also offer convenient financing options with manageable payment options to ensure you get the quality system you need at a price you can afford.

Call (346) 988-2977 to learn more about HVAC rebates and tax credits or schedule services with our NATE-certified technicians.

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