United Air Temp’s mission is simple: Our customers always come first. As a leader in home comfort in the Baltimore area, we prioritize customer service. That care also extends to our environment.

Trust UAT for your HVAC replacement, and you’ll have eco-conscious and cost-effective comfort! We offer energy-efficient solutions that reduce utility usage and costs. HVAC tax credits and rebates help us maximize savings for our customers.

What’s the Difference Between Tax Credits & Rebates?

Federal and state tax credits and state and utility rebates for eligible homeowners who upgrade their HVAC equipment.

A tax credit is an incentive-based offering that cuts the amount owed on your annual taxes. It’s applied directly to your tax statement. Excess credit cannot be issued as a cashback refund but can roll over to future tax years in certain cases.

A rebate is different because homeowners get cashback. You’ll still pay upfront for the HVAC replacement since rebates often aren’t available at the point of sale.

Federal HVAC Tax Credits

In 2022, the Inflation Reduction Act was passed to address the climate change crisis. A federally funded initiative, it seeks to mitigate environmental impact by incentivizing clean energy alternatives. It also encourages economic growth by creating jobs in the green energy sector.

Under the Inflation Reduction Act, several residential HVAC systems are eligible for tax credits, including the following:

• Air-source heat pumps must be rated 14.3 SEER2 or higher for eligibility. Up to 30% of the project cost is covered with a maximum credit of $2,000.
• Ductless mini-splits rated 16 SEER2 or higher qualify. Up to 30% of the project cost is covered with a maximum credit of $2,000.
• Central air conditioners must be rated 16 SEER2 or higher for eligibility. Up to 30% of the project cost is covered with a maximum credit of $600.
• Gas and oil boilers rated 95% AFUE or higher are eligible to have 30% of the project’s cost covered with a maximum credit of $600.
• Gas furnaces rated 97% AFUE or higher are eligible for 30% of project cost coverage with a maximum credit of $600.

What Federal Programs Are There for Home Energy Rebates?

U.S. residents are eligible for two home energy rebate programs. Both encourage your investment in environmentally conscious HVAC systems.

Low- to moderate-income residents should explore The Home Electrification and Appliance Rebates program. Single and multi-family households can apply federally granted discounts to specific equipment and home appliances.

The Home Efficiency Rebates program offers rebates for ENERGY STAR-certified installations that reduce your household’s total energy use by 20% or more. No income requirements apply.

Each state must submit detailed applications to receive funding. Maryland expects rebates to be available to residents in the second half of 2024.

HVAC Rebates for Maryland Homeowners

Baltimore-area residents may also be eligible for several local rebate programs, including:

EmPOWER Maryland

Energy conservation is the primary mission of EmPOWER Maryland. This state-funded program initiated by the Maryland Energy Administration (MEA) offers its utility providers cost-effective benefits for residential, commercial, and industrial properties.

Eligible EmPOWER utility providers include:

• BGE Smart Energy Savers Program
• Delmarva Power’s Energy Saving Programs
• Pepco’s Energy Saving Programs
• Potomac Edison’s Energy Saving Programs
• SMECO’s EmPOWER Maryland Programs
• Washington Gas’ Energy Saving Program

Residential Clean Energy Rebate Program

You can also receive a rebate for installing a geothermal heat pump that provides eco-friendly heating and air conditioning. This system is a long-term investment because the underground loops can last for 50 years!

Geothermal heat pumps are eligible for rebates under the MEA’s Residential Clean Energy Rebate Program. You can receive $3,000 for a 1-ton or larger system! However, you must switch to geothermal to be eligible, as replacements don’t apply.

Are There Any Exclusions for HVAC Rebates?

While many Baltimore homeowners can qualify for HVAC rebates or tax credits, there are a few exclusions, including:

• High-income households: Those earning more than 150% of the area’s median income aren’t eligible for the Home Electrification and Appliance Rebates Program.
• New construction properties: Rebates are only for existing homes, but there are tax credits for home builders.
• Retroactive incentives: Systems installed before the passing of the Inflation Reduction Act can’t qualify for related tax credits or rebates.
• Multiple federal rebates for the same system: Local and federal rebates can be combined, but you often can’t stack multiple federal tax credits for the same unit.

Request HVAC Replacement in Baltimore, MD

Commitment to community, upfront pricing, and high-quality craftsmanship are just a few of United Air Temp’s guiding principles.

Rely on our team for comprehensive heating and cooling replacements, and we’ll help you choose the right system model and size for your home.

Then, we’ll expertly install your new unit that impacts the planet — and your budget — for the better.

Call United Air Temp at (410) 413-3549 to book an HVAC replacement in the Baltimore area!