Installing a new HVAC system in 2026? You may be leaving thousands of dollars on the table if you don't take advantage of available tax credits and rebates.
Installing a new HVAC system in 2026? You may be leaving thousands of dollars on the table if you don't take advantage of available tax credits and rebates. The Inflation Reduction Act (IRA) and state-level programs offer significant savings on energy-efficient heating and cooling equipment.
Important: These are tax credits, not instant rebates. You claim them when you file your federal tax return. You must owe at least the credit amount in federal taxes to get the full benefit.
LG&E/KU offers rebates that change periodically. Programs include rebates for high-efficiency HVAC equipment, smart thermostats, and home energy audits. Some HVAC manufacturers offer seasonal rebates of $200–$1,500 on qualifying equipment. We'll let you know about current manufacturer promotions when we provide your estimate.
Combine credits and rebates. A heat pump installation could qualify for: $2,000 federal tax credit + $200–$500 manufacturer rebate + $100–$300 utility rebate = $2,300–$2,800 total savings. On a $7,000 heat pump installation, that's 33–40% off.
Consider geothermal. The 30% uncapped credit makes geothermal the best incentivized HVAC investment available. A $30,000 geothermal system effectively costs $21,000 after the credit.
Hadley Energy Solutions provides all the documentation you need to claim your tax credits, including manufacturer certification statements, equipment model numbers and efficiency ratings, and detailed invoices. We also help you identify and apply for utility rebates.
Federal credits include: up to $2,000 for heat pumps, up to $600 for high-efficiency AC or furnaces, and 30% (uncapped) for geothermal systems. LG&E also offers utility rebates for qualifying equipment. We help you maximize all available savings.
Yes. Geothermal heat pumps qualify for a 30% federal tax credit with no cap under the Inflation Reduction Act. On a $25,000 system, that's a $7,500 credit. This is the most generous HVAC credit available.
Hadley Energy Solutions, 965 Old Preston Hwy N, Louisville, KY 40229. Phone: (502) 921-3777. Email: info@hadleyenergysolutions.com. Hours: Mon–Fri 8:00 AM – 4:30 PM (Sat–Sun Closed | Emergency service available 24/7).
Licensed Kentucky contractor — Contractor CE64623 · Master Electrician ME64500 · HVAC Master HM06538. Bonded and insured. Serving Louisville, Kentucky and Southern Indiana since 2013.