If you’re thinking of upgrading your heating or cooling before the year ends with a new HVAC system in Simsbury, CT, now is the perfect moment. Between federal tax credits and state-level rebates and incentives, homeowners stand to save significantly on the cost of a new furnace, heat pump, or air conditioner. But these savings won’t linger forever, so it’s worth considering your options before December 31.
Why the End of Year Matters
Thanks to federal incentives under the Inflation Reduction Act (IRA), qualifying clean-energy equipment such as heat pumps and high-efficiency furnaces are eligible for a tax credit that covers up to 30% of the cost. Installing before the end of the year means you can claim that credit on your 2025 taxes. Combine that with state rebates and you could dramatically shrink your out-of-pocket investment.
State Rebates and Incentives Through Energize CT
If you live in Connecticut (or are helping someone who does), Energize CT offers compelling rebates that complement the federal credits. For instance:
- Their “Residential Air Source Heat Pump Incentive” can provide rebates of $250 per ton, potentially adding up to $15,000 for a qualifying system.
- For homeowners replacing a fuel-based heating system (like oil, propane, or electric resistance) with a qualifying heat pump, the “Residential Energy Optimization Incentive” offers starting rebates of $750 per ton, also up to $15,000.
- Even geothermal or ground-source heat pumps may be eligible for substantial rebates — often up to $15,000, though the equipment tends to carry a higher initial price tag.
If you are also doing insulation upgrades or other energy-efficiency improvements, additional rebates available through Energize CT may help further reduce heating and cooling costs over time.
What This Means for Homeowners
Taken together, the federal tax credit and state rebates can make a new high-efficiency heating or cooling system far more affordable than many expect. For homeowners planning central air conditioning or a furnace upgrade, the savings are especially impactful. For those considering a modern heat pump — which can both heat and cool — the long-term savings on utility bills plus the tax and rebate benefits can make the investment especially wise.
Why Act Now
- Federal tax credits under the IRA apply only if installation occurs before the end of 2025.
- Energize CT’s rebate programs are currently active and may change with future funding cycles — especially as demand rises.
- Installing before winter ensures you can take full advantage this “off-season,” when scheduling tends to be easier and you’ll reap energy savings immediately.
If you’ve been on the fence about upgrading your furnace, heat pump, or air conditioner, this year-end window offers a compelling reason to act. We encourage you to chat with us about your current setup, your home’s heating and cooling needs, and whether a furnace, heat pump, or central AC upgrade might be the right fit. We’ll help you navigate rebate eligibility, proper installation, and maximize savings — so you get comfort, efficiency, and value.
Valley Air Conditioning & Heating has been serving Hartford and Litchfield Counties for over 35 years! Contact us today to learn more about upgrading your HVAC system in Simsbury, CT.
