Rebates

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2025 Heat Pump Tax Credits: What You Need to Know

There has been some confusion about whether heat pump tax credits will be available in 2025, largely due to the introduction of the new A2L refrigerants. While the EPA’s mandate requiring the use of R-454B or R-32 (A2L refrigerants) takes effect on January 1, 2025, the transition will be gradual.

ENERGY STAR has information to help you plan energy-efficient upgrades to your home. If you’re considering a new heat pump or a replacement, here’s what you need to know:

Myth vs. Truth

Myth: To qualify for tax credits, heat pumps must use R-454B or R-32 refrigerants.

Truth: Starting January 1, 2025, air-source heat pumps recognized as ENERGY STAR® Most Efficient will be eligible for tax credits.

Two Eligibility Pathways

Cold Climate Heat Pumps – Designed for heating-dominated applications, these models will be labeled ENERGY STAR Cold Climate.
Dual-Fuel Heat Pumps – Optimized for cooling-dominated applications, these systems pair a heat pump with a furnace.

No Regional Restrictions: Homeowners and contractors can choose either option regardless of location.

For homeowners, these tax credits present a valuable opportunity to invest in energy-efficient heat pump heating and cooling, reduce long-term energy costs, and lower their tax burden. By understanding the new requirements, you can make smart, informed choices that benefit both your home and your budget.

Thinking about upgrading your heat pump? Now is the time to plan for 2025!

Duke Energy Home Improvement Rebates

Home Service Nerds HVAC, AC & Furnace Repair is a participating contractor in the Smart $aver home improvement rebate program from Duke Energy. Duke’s Home Improvement Rebates can help make your home more comfortable and can help you reduce your energy usage.

Heating and Cooling System Rebates

Upgrade to an energy-efficient HVAC unit and get up to $2625 in rebates.
To be eligible, you must be a Duke Energy electric customer, and your new equipment must be installed by one of our participating contractors. Also, your equipment must meet the SEER(2)/EER(2)/HSPF(2) requirements listed in the table above.
This program is available to Duke Energy residential electric service customers residing in single/multi-family homes, condominiums, mobile homes on permanent foundations, townhomes, and duplexes.
Additionally, all applications and supporting documentation must be successfully submitted and approved within 60 days of the date of service.