Heating & Cooling (HVAC)

Furnaces, central AC, and heat pumps installed and serviced by licensed HVAC contractors — heat pumps earn federal tax credits.

Heating & Cooling (HVAC) — line illustration

How Heating & Cooling (HVAC) installation works

  1. A licensed HVAC contractor performs a Manual J load calculation.

  2. You receive a written quote with efficiency options and incentives.

  3. They pull the local permit and confirm any rebate paperwork.

  4. The system is installed and commissioned, usually in one to two days.

  5. It passes inspection; you claim the federal credit and utility rebates.


Benefits of Heating & Cooling (HVAC)

  • Install and service furnaces, central AC, and heat pumps
  • High-efficiency heat pumps earn up to $2,000 in federal tax credit
  • Often pairs with utility and IRA electrification rebates
  • Right-sized with a Manual J load calculation
  • Lower bills and year-round comfort

Typical cost

Typically $8,000–$18,000 for a full system before tax credits and rebates

Costs vary significantly depending on property size, existing systems, and contractor. A surveyor's assessment will give you an accurate figure. Available tax credits and rebates (listed below) can substantially reduce the net cost.


Ideal for

  • Homes with aging or failing heating/cooling equipment
  • Owners wanting one system for heating and cooling (a heat pump)
  • High summer cooling or winter heating bills
  • Households eligible for IRA electrification rebates

Grants you may qualify for

View all US tax credits & rebates →

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