2024 HVAC Tax Incentives

2024 HVAC Tax Incentives. Image is a photograph of a thermostat with 3 one hundred dollar bills stacked in front of the bottom right corner.

Purchasing new heating, ventilation, and air conditioning (HVAC) equipment is an investment that pays off through improved comfort and lower energy costs in your Portland, Beaverton or Gresham home.

In 2024, that investment also qualifies you for a tax credit on your federal return.

The federal government is committed to helping you cut the cost of upgrading to a high-efficiency HVAC system by reducing your tax burden the year you install your new equipment.

That financial incentive may be the nudge that moves you to replace your aging, inefficient heating and cooling unit with a system that improves indoor air quality (IAQ), reduces your carbon footprint, and saves money.

Sun Glow Home Services can guide you through the options for qualifying high-efficiency HVAC systems. We also can point you to the incentives available locally, on a state level, and through the federal government.

Our trusted and expert team of HVAC installers has served homes and businesses in Portland, Beaverton or Gresham, OR, for many years. We maintain, repair, and install HVAC systems and can recommend a heating and cooling system that will suit your needs.

2024 Federal Tax Credits

The Inflation Reduction Act (IRA) of 2022 offers a 30 percent tax deduction on the purchase and installment costs of high-efficiency HVAC equipment and other home improvements through 2032.

Most of the credits include a maximum amount for the deduction—but some, including the geothermal credits, do not.

For example, if you install a qualifying air-source heat pump, you can deduct 30 percent of the cost up to $2,000. The 30 percent credit for geothermal has no maximum dollar amount.

Other improvements that qualify for the 30 percent tax credit:

  • Air conditioners, furnaces, and boilers have a maximum credit of $600.
  • Deduct up to $2,000 for air-source heat pumps and heat pump water heaters.
  • Claim up to $150 for an energy audit.
  • Upgrade your electrical panel and deduct up to $600.
  • The home insulation credit has a maximum of $1,200.
  • Get up to $600 back for windows and skylights.


The HVAC equipment and home improvement upgrades must meet specific guidelines to earn a tax credit. You can find eligibility requirements at ENERGY STAR®.

Not sure what to buy? Our experts at Sun Glow Home Services will recommend the best qualifying HVAC system for your Portland, Beaverton or Gresham home. We will not let you miss out on tax incentives.

HVAC Rebates

The IRA also paved the way for rebates that reduce the HVAC point-of-purchase prices. Individual states are in the process of creating the rebate programs they will administer with federal dollars. There is no definite start date for rebates. However, some states are eyeing late 2024 or early 2025.

Two programs the IRA created are:

  • The Home Energy Performance-Based Whole-House Rebate program will rebate $2,000 to $4,000 for energy-efficient retrofits that reduce energy use between 20 to 35 percent or more.
  • The High-Efficiency Electric Home Rebate program will pay 100 percent of electrification project costs for low-income households and 50 percent for middle-income households. Rebates max out at $14,000 per household.

Keep in mind, the rebate program is not in place as of January 2024. The tax credits, on the other hand, are available right now.

State and Local HVAC Incentives

Let our Sun Glow Home Services experts guide you through the ins and outs of HVAC financial incentives, including state tax credits and local utility company rebates. Manufacturers also offer rebates on select products. We can help determine if the rebated equipment meets your heating and cooling needs.

Talk to Us About Upgrading Your HVAC

Let Sun Glow Home Services guide you through the landscape of high-efficiency HVAC and their tax credits. Ask us how to save money on a new heating and cooling system for your Portland, Beaverton or Gresham, OR, home. Call us today at (971) 357-0655 or request service online to schedule a free consultation!

Need HVAC Service?

Contact the experts at Sun Glow Home Services.

Call us at 503-253-7789!

Read More of Our Articles

View other articles.