HVAC Rebates & Energy Tax Credits
Federal tax credits, North Carolina utility rebates, and manufacturer promotions can significantly reduce the cost of a new high-efficiency HVAC system. Here's what's available and how it works.
Important: Tax credit eligibility depends on your individual tax situation, equipment installed, and installation date. Utility rebate programs change periodically. The information on this page is educational and general in nature — it is not tax advice. Consult a qualified tax professional before filing a credit claim. Junior Collins HVAC can identify which equipment qualifies as part of your replacement quote.
Federal HVAC Tax Credits
The Inflation Reduction Act (IRA) provides homeowners with federal tax credits — not deductions — for qualifying high-efficiency HVAC upgrades. A credit directly reduces your federal income tax owed dollar for dollar. Credits reset annually, so you can claim them each year you install qualifying equipment.
Air-Source Heat Pump
Most Popular30% of cost (including installation), up to $2,000 annually. Must meet minimum efficiency requirements (SEER2 ≥ 15.2 cooling, EER2 ≥ 11.7 or HSPF2 ≥ 7.8 heating for split systems).
Central Air Conditioner
30% of cost, up to $600. Must be ENERGY STAR Most Efficient certified. Combined limit with furnace/boiler is $600.
Gas Furnace
30% of cost, up to $600. Must have AFUE ≥ 97%. Combined limit with AC is $600 for these categories.
Smart Thermostat
30% of cost, up to $150. Must be ENERGY STAR certified. Combined Home Energy Audit limit of $150 applies.
Geothermal (Ground-Source) Heat Pump
The most generous HVAC credit available — 30% of the total project cost with no upper dollar limit through 2032. Includes the full system and installation.
Ductless Mini-Split Heat Pump
Qualifying ductless mini-split heat pumps count toward the $2,000 heat pump credit. Must meet efficiency thresholds — ask us which models qualify.
How to Claim the Credit
- 1Install qualifying equipment in your primary US residence in the tax year you're claiming.
- 2Keep your product documentation showing the equipment model, efficiency rating, and installation date.
- 3Ask your installer (that's us) for the Manufacturer's Certificate of Qualification if required.
- 4File IRS Form 5695 (Residential Energy Credits) with your federal tax return.
- 5Consult a tax professional to confirm eligibility for your specific situation.
NC Utility Rebate Programs
Homeowners in our service area may be served by Duke Energy Carolinas or Dominion Energy NC. Both utilities periodically offer rebates on qualifying high-efficiency equipment. Rebate amounts and program availability change frequently — call us or contact your utility directly to confirm current offers.
Duke Energy Carolinas
- Heat pump rebates (qualifying efficient models)
- Smart thermostat rebates ($25–$75, varies)
- Home energy audit program
- Smart meter time-of-use incentives
- Duct sealing and weatherization rebates
Dominion Energy NC
- Heat pump rebates for qualifying systems
- HVAC efficiency upgrade incentives
- Smart thermostat rebates
- Home energy assessment program
- Equipment recycling incentives
Not sure which utility you use? Look at your monthly electric bill — the utility name and account number are clearly printed.
Rebate availability and amounts change frequently. We verify current programs as part of every replacement quote we prepare.
Manufacturer Promotions & Dealer Incentives
Trane Seasonal Promotions
Trane periodically runs manufacturer rebates and promotional incentives for qualifying equipment purchases through authorized dealers like Junior Collins HVAC. These change by season and model — ask when requesting a quote.
Trane Dealer Financing
As an authorized Trane dealer, we offer access to Trane's financing programs including potential 0%-interest promotional terms on qualifying purchases. Subject to credit approval and program availability.
Equipment Bundles
Replacing both the indoor and outdoor units at the same time (recommended) often qualifies for better manufacturer incentives than replacing components individually. Ask us about bundle pricing.
Manufacturer promotions change frequently. Current offers are confirmed at time of quote — call us at (336) 874-2168.
How Junior Collins HVAC Helps You Capture These Savings
We identify qualifying equipment during your quote
We provide documentation needed for tax credits
We check current utility rebates for your service territory
Request a Quote That Includes All Applicable Savings
Junior Collins HVAC will identify available tax credits, utility rebates, and manufacturer incentives as part of every replacement estimate.