What are rebates?
Rebates are location-based incentives that help you save money while making smarter energy choices with your HVAC system. Enter your zip code, discover how much you can save, and apply through your local power provider.
What are tax credits?
Purchasing certain HVAC systems or making other energy-related improvements to your home may qualify you for federal tax credits. Before you buy, research which Trane products let you save with federal tax credits.
Inflation Reduction Act Incentive Details
Great news for homeowners!
Upgrading your HVAC system may not only save you energy costs, but also earn you tax credits and rebates.
The Inflation Reduction Act (or IRA) includes incentives for residential energy-efficient purchases. With a variety of tax credit and rebate programs offered by the act, now is the time for you to take advantage of short-term savings and long-term HVAC system benefits.
If you installed/will install eligible HVAC equipment between January 1, 2023, and December 31, 2025, you may be eligible for tax credits up to 30% of installation costs (up to $1,200/year) under the Energy-Efficient Home Improvement Tax Credit 25C program.
- Up to $2,000 for qualified heat pumps
- Up to $600 for qualified air conditioners
- Up to $600 for qualified furnaces
- Up to $600 for electrical upgrades to enable heat pump installation
Note: The maximum 25C tax credit amount is $3,200 when a qualifying heat pump is included in the purchase.
Local energy efficiency rebate programs:
Your state or local municipality may offer additional rebate programs relating to energy-efficient upgrades. Use the EcoRebates search tool at the top of this page to discover additional rebates available in your area.
Please note: The rebate programs vary from state to state, and can differ depending on your income.
How to apply for a federal energy tax credit
Subject to IRS regulations, tax credits apply as a direct reduction of taxes owed. To apply, follow these steps.
Manufacturer’s certificates
Download and save the manufacturer certificate that matches your system type. These certificates will be helpful when filing your federal taxes 2024.
Heat pump unit manufacturer certificate
Your heat pump or dual fuel system must meet or exceed these efficiency ratings that vary based on system type and installed location:
| Heat Pump Type | 2024 Minimum requirements |
|---|---|
| Split system in the south | 15.2 SEER2, 12.0 EER2, 7.8 HSPF2 |
| Packaged system in the south | 15.2 SEER2, 11.5 EER2, 7.2 HSPF2 |
| Split or packaged system in the north | 15.2 SEER2, 10.0 EER2, 8.1HSPF2, COP of 1.75 at 5F and heating capacity ratio >58% at 17°F/47°F or >70% at 5°F/47°F |
Gas furnace manufacturer’s certificate
Gas furnaces use natural gas or propane to generate heat for your home. Your system must meet the following efficiency rating: 97% AFUE
Air conditioner manufacturer certificate
The air conditioner in your system must have both efficiency ratings per system type:
| Air Conditioner Type | 2024 Minimum requirements |
|---|---|
| Split system | 16.0 SEER2, 12.0 EER2 |
| Packaged system | 15.2 SEER2, 11.5 EER2 |
SPECIAL FINANCING OFFER
Making Trane systems more affordable
0% APR up to 48 months special financing now available through participating dealers
Experience year-round comfort and budget flexibility with 0% APR for 48 months on your purchase of a Trane system. It’s enough to keep you smiling for a long time — available exclusively through participating Trane dealers.
Take advantage of this special financing offer until December 31, 2023!²