Upgrading your heating and cooling system isn’t just about improving comfort—it can also lead to significant savings through tax incentives. In 2025, both federal and Washington State programs are offering rebates and tax credits for homeowners and businesses that invest in energy-efficient HVAC systems. These incentives are designed to reduce energy consumption, lower utility costs, and support environmentally friendly home improvements.
Federal Tax Credits for Energy-Efficient HVAC Systems
The federal government continues to offer tax credits for qualifying HVAC upgrades through programs like the Inflation Reduction Act (IRA). Homeowners who install high-efficiency heat pumps, furnaces, or air conditioners may be eligible for credits covering a percentage of the system’s cost. To qualify, equipment must meet ENERGY STAR® standards or other designated efficiency ratings. Homeowners can receive up to 30% of the total cost, with limits depending on the type of system installed. However, eligibility is restricted to systems installed in a primary residence, meaning rental properties and new construction do not qualify.
Washington State Rebates and Incentives
In addition to federal tax credits, Washington State offers its own programs to help residents transition to energy-efficient HVAC systems. Many local utility companies provide rebates for upgrading to high-efficiency equipment, while the state’s Clean Energy Fund offers financial assistance for homeowners switching to heat pumps or other sustainable HVAC solutions. Additionally, households that meet specific income criteria may qualify for extra incentives to make energy-efficient upgrades more affordable.
How to Claim Your HVAC Tax Incentives
To take advantage of these incentives, it’s important to choose a qualified system that meets federal and state efficiency requirements. Working with a trusted HVAC provider ensures you select the right equipment. Keeping documentation, including invoices and manufacturer certifications, is essential for filing tax claims. When tax season arrives, consulting with a tax professional can help ensure you properly claim all available benefits on your tax return.
Upgrade Your HVAC System and Save
Investing in installing an energy-efficient HVAC system not only improves comfort but also provides valuable tax savings. At NORCO Heating & Air Conditioning, we help Spokane homeowners and businesses choose the best systems to maximize incentives and efficiency. We provide information on utility rebate and financing on approved credit. Contact us today to schedule a consultation and start saving on your next upgrade!
