Investing in a new HVAC system can be a daunting expense. We understand that the cost can be overwhelming, especially when deciding what’s best for your home and your family's comfort. 
With over 16 years of experience in the HVAC industry, we at A&E Plumbing, Heating and Air are well-versed in helping homeowners navigate these challenges.
But there’s good news for Gresham homeowners: there are various local and federal tax breaks and rebates available that can significantly reduce the financial burden of upgrading your HVAC system.
These incentives are designed not only to make energy-efficient improvements more affordable, but also to promote environmental sustainability and help you save money in the long run.
An HVAC upgrade doesn’t have to break the bank: between A&E’s financing options and opportunities to save on both federal and local levels, it’s never been easier to cut costs.
5 Federal HVAC Tax Credits
1. Energy-Efficient Home Improvement Credit
The federal government offers tax credits for homeowners who invest in energy-efficient improvements, including HVAC systems. As of 2024, you can claim up to 30% of the cost of a qualified HVAC installation, with a maximum credit limit set by the IRS. This credit covers the cost of the unit and installation.
How to Claim:
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Ensure the HVAC system meets the energy efficiency requirements set by the Energy Star program.
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Keep all receipts and manufacturer’s certification statements.
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File IRS Form 5695 when you do your taxes.
2. Residential Energy Efficient Property Credit
The federal government offers a tax credit for homeowners who install qualified energy-efficient property, including certain HVAC systems that use renewable energy
sources. As of 2024, you can claim up to 26% of the cost of installing solar panels, solar water heaters, and other renewable energy HVAC systems.
How to Claim:
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Ensure the HVAC system meets the energy efficiency requirements set by the Energy Star program.
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Keep all receipts and manufacturer’s certification statements.
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File IRS Form 5695 when you do your taxes.
3. Nonbusiness Energy Property Credit
Homeowners can receive a tax credit for installing energy-efficient HVAC systems in their primary residences. This credit covers 10% of the cost of qualified energy-efficient improvements, including HVAC systems, up to a maximum of $500 for all years combined from 2006 to 2024.
How to Claim:
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Ensure the HVAC system meets the energy efficiency requirements set by the Energy Star program.
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Keep all receipts and manufacturer’s certification statements.
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File IRS Form 5695 when you do your taxes.
4. Geothermal Heat Pump Tax Credit
The federal government offers a tax credit for homeowners who install geothermal heat pumps. As of 2024, you can claim up to 26% of the cost of installing a geothermal heat pump, including labor costs for on-site preparation, assembly, and installation.
How to Claim:
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Ensure the geothermal heat pump meets the energy efficiency requirements set by the Energy Star program.
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Keep all receipts and manufacturer’s certification statements.
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File IRS Form 5695 when you do your taxes.
5. Small Wind Energy Property Credit
Homeowners can receive a tax credit for installing small wind energy systems, which can be used for heating or cooling purposes. As of 2024, you can claim up to 26% of the cost of installing a wind turbine system.
How to Claim:
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Ensure the wind energy system meets the energy efficiency requirements set by the Energy Star program.
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Keep all receipts and manufacturer’s certification statements.
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File IRS Form 5695 when you do your taxes.
Oregon Residential Energy Tax Credit
The state of Oregon offers a rebate called the Energy-Efficient Appliance Rebate Program for homeowners who purchase and install energy-efficient HVAC systems. These rebates aim to promote the use of energy-saving appliances and reduce overall energy consumption.
As of 2024, you can receive up to $500 for qualifying HVAC systems, including heat pumps and air conditioners.
How to Claim:
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Ensure your HVAC system meets the energy efficiency criteria outlined by the Oregon Department of Energy.
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Purchase and install the qualifying system in your home.
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Keep all receipts and the system's certification statement.
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Submit an application along with proof of purchase and installation to the Oregon Department of Energy.
5 Local Rebates for Gresham Homeowners
1. Energy Trust of Oregon Rebates
The Energy Trust of Oregon offers incentives for energy-efficient home improvements. Gresham residents can receive rebates for installing high-efficiency HVAC systems, heat pumps, and ductless heat pumps.
How to Apply:
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Visit the Energy Trust of Oregon website and find the list of qualifying HVAC systems.
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Hire a qualified contractor to install the system.
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Submit a rebate application along with proof of purchase and installation.
2. Portland General Electric (PGE) and NW Natural Rebates
Local utility companies like PGE and NW Natural offer rebates for energy-efficient HVAC installations. These rebates can significantly reduce the cost of new systems.
How to Apply:
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Check the utility company’s website for eligible HVAC systems.
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Use a contractor who participates in the rebate program.
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Complete the rebate application and submit it with your installation invoice.
3. Clackamas County Weatherization Assistance Program
Clackamas County provides assistance to low-income households to improve energy efficiency through the Weatherization Assistance Program. This program includes free or low-cost HVAC system upgrades and weatherization services.
How to Apply:
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Visit the Clackamas County Weatherization Assistance Program page to check eligibility requirements.
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Contact the program office to schedule an energy assessment.
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Work with the program's designated contractors to install the recommended improvements.
4. NW Natural Gas Residential Rebates
NW Natural Gas offers rebates to customers who upgrade to energy-efficient natural gas HVAC systems, including high-efficiency furnaces and water heaters. These incentives aim to help reduce energy usage and improve home comfort.
How to Apply:
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Check the NW Natural Gas website for a list of qualifying HVAC systems and rebate amounts.
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Hire a licensed contractor to perform the installation.
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Submit the completed rebate application with the required documentation, including proof of purchase and installation.
5. Pacific Power Home Energy Savings Program
Pacific Power provides rebates for energy-efficient HVAC installations to help customers reduce their energy consumption and costs. Gresham residents can benefit from these incentives for high-efficiency air conditioners, heat pumps, and smart thermostats.
How to Apply:
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Visit the Pacific Power Home Energy Savings Program website to find the list of eligible HVAC systems and equipment.
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Select a participating contractor to install the system.
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Complete and submit the rebate application along with proof of purchase and installation.
HVAC Manufacturer Rebates
Many HVAC manufacturers, such as Trane, offer rebates directly to consumers as an incentive to purchase their energy-efficient products. These rebates can significantly
reduce the upfront cost of installing new HVAC systems, including high-efficiency air conditioners, furnaces, heat pumps, and smart thermostats.
To take advantage of these rebates, homeowners typically need to purchase qualifying equipment from an authorized dealer, such as A&E Plumbing, Heating and Air. After the installation, consumers must submit a rebate application along with proof of purchase and installation to the manufacturer.
Discover How A&E Plumbing, Heating and Air Can Help You Qualify for Savings
Navigating the array of HVAC tax breaks and rebates available to Gresham residents can be overwhelming, but it is well worth the effort.
These incentives provide significant financial relief, making it easier to invest in energy-efficient home improvements that not only enhance your comfort but also contribute to a more sustainable environment.
At A&E Plumbing, Heating and Air, we are dedicated to helping our customers maximize their savings through these programs. Our team of experts bring years of experience in helping homeowners just like you in selecting the right HVAC system, ensuring it meets all eligibility requirements, and guiding you through the application process for federal, state, and local rebates.
By leveraging these opportunities, you can enjoy a more comfortable home and lower energy bills while making a positive impact on the environment. Let’s connect today to explore how we can help you take advantage of these valuable incentives.
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