Central AC · Furnaces · Boilers
The HVAC rebate stack
A central HVAC replacement is one of the most consistent rebate stacks across all 50 states. The federal IRA 25C credit gives you 30% back up to $600 per item ($1,200 envelope cap). Utility rebates typically add $200-$1,500. State programs layer on top in roughly half of states.
Federal credit (25C)
- Central air conditioner: $600 max (30% of cost), CEE Tier 2 efficiency or higher
- Gas furnace: $600 max (30%), 97% AFUE or higher
- Boiler: $600 max (30%), CEE Tier 2
- Annual envelope cap of $1,200 limits the total stack across HVAC + windows + insulation in a single tax year
Utility rebates
Almost every utility offers a central AC and furnace rebate. Tiered by efficiency — base ENERGY STAR rebates run $100-$300, while top-tier (16-18 SEER2 AC, 95-97 AFUE furnace) rebates can hit $1,000-$1,500. Smart-thermostat rebates often layer on top.
State programs
Tier A states (CA, NY, MA, NJ, MN, CO, etc.) often add $200-$1,000 on top of utility rebates for high-efficiency HVAC. Tier B/C states are typically federal + utility only.
What qualifies
Verify your specific equipment is on the AHRI Directory and matches the AHRI certificate the contractor provides. Different indoor/outdoor coil combinations on the same nameplate AC can have different SEER2 ratings — the AHRI cert determines eligibility, not the box.
Why heat pumps are the better stack
The 25C credit caps central AC at $600 — but heat pumps get $2,000. If you're replacing a gas furnace + AC, a heat pump often nets more federal credit and more utility rebate. See heat pump page.