HVAC Tax Credits & Rebates for Michigan Homeowners
Installing or replacing an HVAC system can be a major investment for many Michigan homeowners. Thankfully, there are plenty of tax credits and rebates that families can take advantage of to offset the costs of heating and cooling systems.
In this blog post, the comfort specialists at Dominion Service Company explain what tax credits and rebates are available for HVAC installations and replacements and how to apply for them.
Available HVAC Tax Rebates & Credits
Under the Inflation Reduction Act of 2022, the federal government made a wide variety of HVAC rebates available to homeowners all over the country through the end of 2032. Michigan families are now eligible to receive up to $3,200 annually for qualifying energy-efficient HVAC upgrades for heat pumps, heat pump water heaters, insulation, gas furnaces, and boilers.
Below is a simple breakdown of what HVAC tax rebates and credits are currently available to Michigan families:
- HVAC: Homeowners may receive up to $2,000 toward new heat pump installations.
- Home energy audits: Families may qualify for up to $150 in rebates for home energy audits.
- Water heaters: Michigan residents can receive up to $2,000 for heat pump water heater installations, with additional rebates for gas and propane water heaters and biomass and hot water boilers.
Along with the tax credits available to all Michigan homeowners regardless of income level, there are specific incentives for low-income households that may cover 50% to 100% of the cost of installing new heat pumps, gas furnaces, and gas boilers. Additionally, Michigan’s Energy Smart program offers special rebates to residents who install qualifying ENERGY STAR® appliances, including:
- Gas furnaces
- High-efficiency central air conditioners
- Heat pumps
- Packaged units
- Boilers
- Ductless mini-splits
- Geothermal systems
Who Can Apply for These?
In order to qualify for HVAC rebates and tax credits in Michigan, you’ll need to satisfy the following eligibility requirements:
- Time of installation: Only qualifying installations and replacements that occur between January 1, 2023, to December 31, 2032, are eligible for tax credits.
- Caps on claims: Homeowners can claim 30% of an HVAC project’s cost, including up to $2,000 for heat pumps and $600 for boilers, central AC systems, and furnaces.
- Other qualifying equipment: Any ducted air-source heat pumps with an ENERGY STAR® qualify for available rebates.
How To Apply for These Rebates & Tax Credits
Applying for HVAC rebates in Michigan is a fairly simple process. Most tax credits must be redeemed by submitting the appropriate filing when it comes time to do your annual income taxes. It’s best to work with a knowledgeable tax professional to ensure you satisfy all eligibility requirements and submit the proper filing to receive your full benefit. For Michigan’s Energy Smart program, homeowners can submit their applications online for consideration.
Why Choose Us?
At Dominion Service Company, our team takes pride in staying on top of all local rebates and tax incentives to help families save on their HVAC installations and replacements. In addition to our extensive knowledge of the local rebate landscape, we also offer upfront pricing, plenty of rotating specials, and flexible financing options to make our services as affordable and accessible as possible to all Michigan families.
Save on your HVAC installation and replacement service by contacting our team to book your appointment in Brighton, MI, today!
