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How to Save Thousands on a New HVAC System with Federal & State Incentives

Person holding thousands of dollars in HVAC savings

If you’ve been holding off on replacing your old heating or cooling system because of the cost, here’s some great news — you may not have to pay full price. 

Thanks to new federal tax credits and state utility rebates, homeowners in Montgomery and across Central Alabama can save thousands on high-efficiency HVAC upgrades.

At Hans Heating and Air, we help you take advantage of every available incentive, so you can enjoy a more comfortable, energy-efficient home without breaking the bank.

Why Now’s the Smart Time to Upgrade Your HVAC

Older HVAC systems can be costly to operate. If your system has been around for over a decade, it’s likely working well below peak efficiency, which means you’re wasting money every time your air conditioner or furnace runs.

Here’s what upgrading can do for your comfort and your wallet:

Lower Energy Bills

Modern, energy-efficient HVAC systems use up to 20% less energy, saving most homeowners $200–$400 a year on heating and cooling costs. Over the system’s lifetime, that adds up to thousands in savings.

Fewer Repairs

New systems are built to last longer and run more reliably. That means fewer emergency calls, less stress, and more peace of mind, especially when your new system is backed by Hans’ 3-Year Parts & Labor Warranty.

Consistent, Comfortable Temperatures

High-efficiency systems heat and cool your home more evenly, run more quietly, and give you better humidity control all year long.

The upfront cost might seem like a hurdle, but federal and state programs are helping to make these upgrades more affordable than ever.

Federal Tax Credit: Save Up to $3,200

The federal government is offering homeowners up to $3,200 in tax credits for installing qualifying high-efficiency HVAC systems and other energy-saving home upgrades.

This credit directly reduces your tax bill, putting real savings back in your hands.

Important: The credit expires December 31, 2025 — if upgrading your HVAC is on your to-do list, prioritize it now!

What Qualifies

The tax credit applies to several high-efficiency systems, including central air conditioners, heat pumps, furnaces, and boilers.

Your system just needs to meet the energy efficiency standards set by the Department of Energy.

How Much You Can Save

The credit is 30% of the project cost, up to the following annual limits for qualifying equipment:

Equipment Type 

Maximum Annual Credit

High-Efficiency Heat Pumps (including water heaters)

Up to $2,000

Qualifying Central Air Conditioners

Up to $600

Qualifying Natural Gas/Propane/Oil Furnaces or Boilers

Up to $600

Top-rated, high-efficiency systems can reach the full annual credit of $3,200 by combining the $2,000 heat pump credit with up to $1,200 from other eligible home envelope or system improvements (such as insulation, windows, doors, or an electric panel upgrade).

How to Claim It

When it’s time to claim your federal tax credit, make sure you have the necessary paperwork ready to ensure you get the full savings.

You’ll need to provide:

  • Your installation invoice
  • The manufacturer’s certification statement
  • Proof that the system meets energy efficiency requirements

The good news? Hans Heating and Air provides all the documentation you’ll need, so claiming your credit is quick and easy.

State & Local Utility Rebates: Even More Savings

In addition to the federal tax credit, Alabama homeowners can often qualify for rebates through Alabama Power and local utility providers. These rebates help lower your upfront costs even further, and they can usually be combined with your federal credit.

What You Can Expect

Depending on your system and provider, rebates can range from a few hundred dollars to over $1,000. Some utilities even offer instant rebates at the time of installation, so you save right away.

How It Works

State and utility rebates usually require a simple application and some documentation. Rebates can be applied to your bill, sent as a check, or even given instantly at purchase, so you start saving right away.

At Hans, our team will walk you through which programs apply to your home and make sure you don’t miss a single dollar of potential savings.

See How It Adds Up

Let’s say your new high-efficiency system costs $8,000:

Visual showing federal, state, and local HVAC incentives stacked to reduce installation costs for Alabama homeowners.
See how federal tax credits, state rebates, and local utility incentives can stack to save Alabama homeowners thousands on high-efficiency HVAC upgrades.

That’s $4,700 in total savings, bringing your out-of-pocket cost down to just $3,300, and that doesn’t even count your future energy savings.

How to Maximize Your HVAC Incentives

To make sure you get every available rebate and credit, follow these simple steps:

  1. Choose a Qualified System Hans Heating and Air will help you find the perfect high-efficiency system that meets all rebate and tax credit requirements.
  2. Confirm Eligibility  — We’ll verify that your equipment meets all Department of Energy efficiency standards before installation.
  3. Keep Your Paperwork — We’ll provide all the documentation you need to claim both federal and state incentives.
  4. Act Before Deadlines — Rebate funds are limited, and the federal tax credit only applies to systems installed by the end of the year. Don’t wait!

FAQs About HVAC Incentives

Can I combine the federal tax credit with state rebates?

Absolutely! These programs are designed to work together, and Hans will help you make the most of both.

Yes — most programs require that the homeowner owns the property where the system is installed.

Unfortunately, you’d miss out. That’s why we handle most of the paperwork for you to keep everything on track.

Why Work with Hans Heating and Air?

We know choosing a new HVAC system is a big decision. That’s why homeowners across Montgomery, Prattville, Wetumpka, and the surrounding areas trust Hans Heating and Air to make the process easy, affordable, and worry-free:

At Hans Heating and Air, every HVAC upgrade comes with more than quality equipment. You also get a reliable local partner focused on your comfort, savings, and peace of mind.

Upgrade Now and Start Saving

Don’t wait until these incentives expire! 

Call Hans Heating and Air today or request your free estimate online.

We’ll help you find the best energy-efficient system for your home, guide you through every available rebate, and make sure you keep more of your hard-earned money.

Upgrade smart. Save big. Stay comfortable with Hans Heating and Air.