STATE-LEVEL

State TaxCredits

Most states have regulations and tax credits available.

Take a look at the programs available in your state. For example, New Jersey has the COOLAdvantage Program which provides rebates for energy efficient central air conditioners or heat pumps as well as “best practices” on proper sizing and installation that affect operating efficiency.

FEDERAL-LEVEL

Federal TaxCredits

The federal government also offers energy efficiency tax credits.

For qualified HVAC improvements, homeowners may be able to claim 25C tax credits equal to 10% of the installed costs (up to $500 maximum). The extended tax credit is in effect for all qualifying systems and products installed during the 2012 through 2016 calendar years and expires on December 31, 2016. For the most updated federal energy tax credit information, be sure to consult with a professional tax expert.

LOCAL-LEVEL

Local TaxCredits

Some residential energy credits are available at the neighborhood level.

Con Edison, an energy utility in New York offered a rebate up to $800 for mini-split heat pumps through October 3, 2016 in select neighborhoods throughout Brooklyn and Queens. While this program is temporary, may be many others just like it around the country.