2025 Georgia HVAC Tax Credit Rebates
Discover Clean Energy Tax Credits & Rebates available for Georgia consumers and improve the efficiency of your home.
The Inflation Reduction Act (IRA) was enacted by the federal government in August 2022 with the objective of reducing greenhouse gas (GHG) emissions by 40% by 2030, and it has had the greatest impact in two primary tax areas.
These areas include the Energy Efficient Home Improvement Tax Credit (25C) and the High Efficiency Electric Home Rebate Program (HEEHRP).
At Reliable, we offer a broad assortment of ENERGY STAR® qualifying products eligible for these programs. Use the calculator below to see how you qualify. Have questions about the new tax credits & rebates? Our team has thoroughly researched them and is eager to provide answers.
Central Air Conditioners • Heat Pumps • Ductless Systems • Water Heaters • Electric Vehicle Chargers • Electrical Panels • Duct Sealing & More
Frequently Asked Questions
Who is eligible for tax credits?
Homeowners, including renters for certain expenditures, who purchase energy and other efficient appliances and products.
What do consumers do to get the credit(s)?
Fill out IRS Form 5695, following IRS instructions, and include it when filing your tax return. Include any relevant product receipts.
Are there limits to what consumers can claim?
Consumers can claim the same or varying credits year after year with new products purchased, but some credits have an annual limit.
What Heating, cooling, and Water Heating products are eligible for tax credits?
Electric or natural gas heat pumps; electric or natural gas heat pump water heaters; central air conditioners; natural gas or propane or oil water heaters; natural gas or propane or oil furnaces or hot water boilers that meet or exceed the specific efficiency tiers established by the Consortium for Energy Efficiency. As well as solar water heating products that are certified for performance by the Solar Rating Certification Corporation or comparable entity endorsed by the state government in which product is installed.
Georgia HVAC Rebates
In 2025, Georgia homeowners have access to substantial rebates for HVAC upgrades through both state and utility programs. The Georgia Environmental Finance Authority (GEFA) administers the Home Energy Rebates program, offering up to $16,000 in savings depending on household income and expected energy savings. This initiative includes two main components: the Home Efficiency Rebates (HER) and the Home Electrification and Appliance Rebates (HEAR). The HER program provides rebates for energy-efficient upgrades such as insulation, air sealing, and HVAC systems, while the HEAR program offers incentives for the purchase and installation of electric appliances, including heat pumps and cooktops.
Additionally, Georgia Power's Home Energy Improvement Program (HEIP) offers rebates for various energy-saving measures, including HVAC-related upgrades. Eligible customers can receive up to 50% back on select products and services, with a cap of $1,250 in total rebates. Rebates are available for improvements such as duct sealing, air sealing, and the installation of heat pump water heaters and smart thermostats. These programs aim to enhance home comfort and reduce energy costs for Georgia residents.
Tax Section 25C, Nonbusiness Energy Property Credit
Starting from January 1, 2023, homeowners can receive a tax credit equal to 30% of installation costs for the highest efficiency heating and cooling products. The tax credit has a maximum limit of $600 for eligible air conditioners and furnaces, and up to $2,000 for qualified heat pumps.
Georgia Heat Pump Rebates
In 2025, Georgia homeowners have access to substantial rebates for heat pump installations through two primary programs: the Home Energy Rebates (HER) and Home Electrification and Appliance Rebates (HEAR). The HER program offers rebates ranging from $2,000 to $4,000 for individual households, with potential savings up to $400,000 for multifamily buildings, based on the amount of energy saved through retrofits.
The HEAR program provides point-of-sale rebates for various energy-efficient appliances and upgrades, such as heat pumps, electric stoves, electrical panels, and insulation. Households with incomes less than or equal to 150% of the area median income (AMI) are eligible for these rebates, with larger rebates available for households earning 80% or less of AMI.
Additionally, Georgia Power offers rebates for heat pump water heaters through its Home Energy Improvement Program (HEIP). Customers can receive up to 50% of the cost, up to $1,000, for the purchase and installation of qualifying heat pump water heaters.
To maximize savings, homeowners can combine these state and utility rebates with federal tax credits. The federal Nonbusiness Energy Property Credit allows homeowners to claim a tax credit of 30% of installation costs for qualified heat pumps, up to a maximum of $2,000.
2025 Georgia HAC Tax Credit
The 2025 federal HVAC tax credits, part of the Energy Efficient Home Improvement Credit under Section 25C, offer homeowners substantial savings on energy-efficient upgrades. These credits cover 30% of the cost of eligible improvements, up to $3,200 annually. The $3,200 cap is divided into two categories: a general limit of $1,200 for upgrades like insulation, windows, and doors, and a separate $2,000 limit for high-efficiency heat pumps, heat pump water heaters, and biomass stoves or boilers. Notably, the credit applies to both primary and secondary residences, and there are no income restrictions for eligibility.
For HVAC systems, qualifying equipment must meet or exceed the highest efficiency tier established by the Consortium for Energy Efficiency (CEE), excluding any advanced tiers. Starting in 2025, to claim the credit, homeowners must include a Product Identification Number (PIN) or a Qualified Manufacturer (QM) code for each eligible item on their tax return. This requirement applies to various HVAC products, including heat pumps, air conditioners, and furnaces. Additionally, homeowners can combine these federal tax credits with state and utility rebates, potentially increasing total savings. To claim the credit, homeowners should complete IRS Form 5695 and retain all relevant documentation, such as receipts and manufacturer certifications.
Save Even More on Utilities by Upgrading to a Higher-Efficiency Air Conditioner
Upgrading to a more efficient Air Conditioner can result in substantial monthly energy bill savings. Air conditioning units are rated based on their efficiency, as measured by their Seasonal Energy Efficiency Ratio (SEER) value. The higher the SEER value, the greater the energy efficiency of the system. In comparison to older AC systems, which typically have a SEER value ranging from 8 to 12, newer units have a SEER value of 13 to 25 and are significantly more cost-effective to operate.
To receive a FREE estimate on a new, higher-efficiency AC system, click below!