HVAC Tax Credits and Rebates in Wisconsin and Illinois

Spring is home improvement time in Wisconsin and Illinois. Whether you plan to improve your home’s efficiency or upgrade your heating, ventilation, and air conditioning (HVAC) system, you can save big with tax and rebate incentives.

At Midwest Heating & Cooling, we love helping customers achieve their home heating and cooling goals in Mukwonago, and neighboring communities. We offer affordable and customized HVAC solutions that can make your home more efficient, greener, and more comfortable.

We understand that replacing your heating and cooling system is a significant investment, especially if you plan to upgrade from standard to energy-efficient equipment. We want to help lessen the financial burden by steering you toward tax credits and rebates that make it more affordable to go green.

Here is a sampling of programs that can help you afford high-efficiency equipment, starting with federal tax credits.

25C Residential Energy Efficiency Tax Credit

These 30 percent (capped) HVAC tax credits are available through 2032 for various improvements.

You can save up to $2,000 for each of these products:

• Air-source heat pumps
• Heat pump water heaters
• Biomass stoves or boilers
• EV chargers

Save up to $1,200 on insulation.

Get a $600 tax credit for these improvements:

• Windows and skylights
• Natural gas water heaters
• Natural gas or oil furnaces
• Boilers
• Central air conditioners
• Electric panel upgrade

Save up to $500 for exterior doors and up to $150 for a home energy audit.

25D Residential Clean Energy Tax Credit

Are you considering a renewable energy system, like solar panels or geothermal? You can get a 30 percent (uncapped) HVAC tax credit for solar panels, geothermal heat pumps, and small wind turbines placed into service before Jan. 1, 2033.

With weather-driven power outages becoming more prevalent in the U.S., you can gain peace of mind by installing backup power in your Mukwonago, home. The federal government also offers a 30 percent tax credit for battery storage technology through 2032.

Visit ENERGY STAR^® for more information on product eligibility requirements.

Home Energy Rebate Programs in Wisconsin and Illinois

Wisconsin received federal dollars through the Inflation Reduction Act of 2022 for two rebate programs to help residents make home efficiency and electrification improvements.

Focus on Energy is implementing the Home Efficiency Rebates (HOMES) and Home Electrification and Appliance Rebate (HEAR) programs in Wisconsin.

Let’s take a look at the HOMES and HEAR rebate programs available to Wisconsin residents:

HOMES Rebates

Households get rebates based on how much their home improvement projects are expected to save in energy use. Projects must reduce energy use by 20 percent or more.

A professional home energy assessment is a prerequisite. It helps identify energy-saving projects and estimated savings.

Qualifying projects include upgrading insulation, air sealing, windows, doors, and skylights, and installing eligible ENERGY STAR appliances, water heaters, and heating and cooling equipment.

According to ENERGY STAR, sealing and insulating your home can save an average of 15 percent on heating and cooling costs. Adequate insulation and sealing can reduce the workload on your HVAC unit, improving energy efficiency and longevity.

For more information, visit Focus on Energy’s HOMES page. Focus on Energy.

HEAR Rebates

The program is based on income and is open to moderate- to low-income households.

Eligible rebates include:

• ENERGY STAR electric heat pump water heaters and electric heat pumps for space heating
• Electrical panel and wiring upgrades
• ENERGY STAR insulation, ventilation, and air sealing

Later this year, instant rebates for ENERGY STAR electric stoves, cooktops, ranges, and electric heat pump clothes dryers will be available.

For more information on income eligibility, visit Focus on Energy’s HEAR page.

Home Energy Rebates in Illinois

According to the Illinois Environmental Protection Agency website, program funding “has not yet been processed by or provided to” the agency for distribution. Illinois residents can sign up for Home Energy Rebate updates by visiting the agency’s website.

Wisconsin Utility Company Rebates

Focus on Energy in Wisconsin partners with utility companies and offers discounts on smart thermostats, water heaters, solar panels, and more. Here is a sampling of discounts on space heating units:

• Natural gas furnaces: Get $100 off a unit with an efficiency rating of at least 95 percent annual fuel utilization efficiency (AFUE).
• Gas boilers: The discount is $300 for boilers rated at least 90 percent AFUE and $350 for those with 95 percent AFUE. Get $450 for a combination boiler that provides space and water heating and is rated at least 95 percent AFUE.
• Heat pumps: Discounts range from $400 to $700, depending on equipment efficiency.

For more information about discounts, visit the rebates and incentives page at Focus on Energy.

HVAC Discounts in Illinois

If you are a ComEd customer, you can save on these heating and cooling upgrades:

• Ducted heat pump: Get a $1,200 or $1,400 discount on an air-source ducted heat pump, based on efficiency.
• Ductless Heat Pump: Get $1,000 off a ductless mini split heat pump.
• Geothermal: Receive up to a $6,000 discount is available on a geothermal heat pump system and loop. Earn a discount of up to $1,200 if you just need to replace the geothermal heat pump, not the loop.

For more information, visit ComEd.

Start Your HVAC Project Today!

Now that you know how much you can save through tax credits and rebates, you can confidently plan to upgrade the HVAC in your Mukwonago, home. Our team at Midwest Heating & Cooling can recommend the best heating and cooling system for your comfort needs. Call us at 414-301-7665 or request service online.