Georgia HVAC Tax Credits & Rebates Resource Guide

Upgrading your home's HVAC system doesn't have to come with a high price tag—especially if you take advantage of the state and federal tax incentives available to Georgia homeowners. Whether you're installing a high-efficiency heat pump or making broader energy improvements, multiple rebate and credit opportunities can reduce your total out-of-pocket cost.

This resource page from MR. HVAC outlines the federal Energy Efficient Home Improvement Credit, the Georgia Home Energy Rebates (HER) program, and additional savings from local utility providers to help you make informed decisions and maximize your return on investment.

Tax Section 25C: Energy Efficient Home Improvement Credit

Beginning January 1, 2023, homeowners may claim a federal tax credit equal to 30% of the cost of qualified HVAC equipment and installation under Section 25C of the Internal Revenue Code. The credit applies to energy-efficient improvements made to primary residences and is available annually through 2032.

Maximum Credit Amounts

• Up to $600 for eligible air conditioners, furnaces, and boilers

• Up to $2,000 for qualifying heat pumps and heat pump water heaters

• Annual limit: $3,200 per household, including insulation, windows, and other improvements

Requirements

• Equipment must meet the highest efficiency tier recognized by the Consortium for Energy Efficiency (CEE)

• A licensed professional must perform the installation

• The claim must be filed using IRS Form 5695 when filing federal taxes

This credit can be combined with Georgia rebates and local utility incentives to maximize total savings.

Federal Tax Credit: Energy Efficient Home Improvement Credit (Inflation Reduction Act)

The Energy Efficient Home Improvement Credit, renewed and expanded through the Inflation Reduction Act, provides homeowners with a 30% federal tax credit on qualified home energy upgrades.

How the Credit Works

This credit allows you to claim 30% of the cost of qualified improvements on your federal tax return, reducing the amount of taxes you owe. The credit resets annually, allowing for recurring improvements year to year.

Maximum Credit Breakdown (Annual Cap: $3,200)

• Up to $2,000 for qualified heat pumps, heat pump water heaters, and biomass stoves/boilers

• Up to $1,200 total for:

  • Central air conditioners

  • Natural gas, propane, or oil furnaces and boilers

  • Insulation and air sealing

  • Home energy audits (up to $150)

• $600 limit for:

  • Windows and skylights

• $500 total for exterior doors ($250 per door)

Qualifying HVAC Equipment

• Heat pumps (must meet specific ENERGY STAR standards)

• High-efficiency central A/C units

• Furnaces and boilers meeting energy efficiency thresholds

• Electric or gas water heaters

Requirements

• Professional installation is required.

• Save all receipts and documentation.

• Submit IRS Form 5695 when filing your federal return

Tip: This credit can be combined with state and utility rebates, allowing you to stack your savings.

Georgia's Home Energy Rebates (HER Program)

The Georgia Home Energy Rebates (HER) program, administered by the Georgia Environmental Finance Authority (GEFA), provides direct rebates for home energy efficiency upgrades, particularly for households with low to moderate incomes.

Key Features

• Rebates are income-based: Higher incentives for households earning less than 80% of area median income

• Covers a range of upgrades:

  • Heat pump installations

  • HVAC system replacements

  • Home insulation

  • Air sealing

  • Electrical panel upgrades (where needed to support new systems)

Rebate Amounts

• Vary by project scope and household income.

• Some households may qualify for rebates up to $16,000

How to Apply

• Applications are submitted through an approved contractor.

• You must complete a home energy assessment and provide proof of income eligibility.

• Visit the official GEFA HER website for documentation, forms, and a list of participating contractors.

Additional Savings: Local Utility Rebates in Georgia

Many utility providers in Georgia offer additional rebate programs that can be used in conjunction with the federal credit and HER rebates.

1. TVA EnergyRight Rebate (Tennessee Valley Authority)

If you live in the TVA service region (mainly northern and western GA), you may be eligible for rebates through the TVA EnergyRight program.

• Covers HVAC upgrades, duct sealing, and insulation

• Must use a Quality Contractor Network (QCN) installer

• Schedule an energy evaluation before upgrades begin.

2. Georgia Power Home Energy Improvement Program (HEIP)

Georgia Power offers rebates for various upgrades through its HEIP initiative.

Eligible Improvements

• HVAC system replacements

• Duct sealing and insulation

• Smart thermostats

• Whole-house air sealing

Participation Requirements

• Must use a participating contractor

• Requires pre- and post-work inspections

• Incentive amounts vary based on energy savings

3. Local Electric Co-Ops and Municipal Utilities

Smaller utility providers—such as GreyStone Power, Jackson EMC, Walton EMC, and others—offer rebates on:

• ENERGY STAR HVAC systems

• Heat pumps

• Water heaters

• Energy audits

Contact your local provider to confirm program availability and review the application process.

What You Need to Claim These Incentives

Keep All Documentation

• Purchase receipts

• Installation invoices

• Manufacturer product details

• Energy audit reports (if applicable)

Use a Licensed HVAC Contractor

Rebates and credits almost always require installation by a licensed and insured professional. DIY installations typically do not qualify.

Watch the Deadlines

Each program may have different:

• Start and end dates

• Application deadlines

• Filing timelines (the federal tax credit must be claimed during the appropriate tax year)

Plan for Combined Savings

In most cases, you can combine:

• Federal tax credit

• HER rebate

• Georgia Power/TVA rebate

• Local utility incentives

Combining all eligible programs could result in thousands in savings, especially when replacing older systems with ENERGY STAR-rated units.

2023-2032 25C Federal HVAC Tax Credit: Qualified Equipment & Efficiency Standards

Homeowners can receive up to $2,000 in federal tax credits for qualifying heat pumps, and up to $600 for high-efficiency air conditioners and furnaces. Credit amounts depend on equipment type, efficiency rating, and your region.

Eligible Heat Pumps - Up to $2,000

Type	Region	SEER2	EER2	HSPF2	Other Requirements
Split Ducted Heat Pump	North	≥15.2	≥10	≥8.1	COP @ 5°F ≥ 1.75, Capacity Ratio 58%/70%
	South	≥15.2	≥11.7	≥7.8	-
Non-Ducted Heat Pump	North	≥16	≥9	≥9.5	COP @ 5°F ≥ 1.75, Capacity Ratio 58%/70%
	South	≥16	≥12	≥9	-
Packaged Heat Pump	North	≥15.2	≥10	≥8.1	COP @ 5°F ≥ 1.75, Capacity Ratio 58%/70%
	South	≥15.2	≥10.6	≥7.2	-

Eligible Central Air Conditioners - Up to $600

Type	Region	SEER2	EER2
Split AC	Nationwide	≥16	≥12
Packaged AC	Nationwide	≥15.2	≥11.5

Eligible Furnaces - Up to $600

Type	Region	AFUE Requirement
Gas-Fired Forced Hot Air	Nationwide	≥97% AFUE

Additional Requirements

• Only available for primary residences. Rentals and new builds do not qualify.
• Licensed professional installation is required.
• You must file IRS Form 5695 with your federal tax return to claim the credit.
• This credit can be combined with Georgia rebates and local utility incentives to maximize savings.

Need Help? Mr HVAC Can Guide You

At Mr HVAC, we help Georgia homeowners maximize every available incentive. When you work with our licensed team, we ensure your HVAC installation meets the standards for all available rebates and tax credits.

• We verify that your system qualifies.

• We provide all the documentation needed for tax filing.

• We help coordinate rebate applications

📞 Call Mr HVAC today or fill out our online estimate form to get started.

Let us help you maximize the benefits of your HVAC upgrade, saving money and enhancing your home's energy efficiency.