2025 HVAC Tax Rebates in Washington State

Federal HVAC Tax Rebates and Incentives

The federal government, through the Inflation Reduction Act (IRA), offers significant savings for energy-efficient HVAC upgrades. These apply nationwide, including Washington State.

• Energy Efficient Home Improvement Tax Credit (25C)
  • Amount: 30% of installation costs, up to $2,000 for qualified heat pumps; $600 for air conditioners or furnaces.
  • Eligibility: Heat pumps meeting Consortium for Energy Efficiency (CEE) highest tier standards; available through 2032.
  • How to Claim: File IRS Form 5695 with your tax return.
• High-Efficiency Electric Home Rebate Program (HEEHRA)
  • Amount: Up to $8,000 for heat pumps for low-income households (below 80% AMI); up to $4,000 for moderate-income (80-150% AMI).
  • Eligibility: Income-based, administered by states; expected rollout in Washington by late spring 2025.
  • Note: No retroactive rebates; applies to Energy Star-qualified heat pumps.

Washington State HVAC Rebates

Washington State supplements federal incentives with programs funded by the Climate Commitment Act (CCA) and the Department of Commerce.

• State Home Electrification and Appliance Rebates (HEAR)
  • Amount: Varies; up to $8,000 for heat pumps for low- and moderate-income households.
  • Eligibility: Income up to 150% of Area Median Income (AMI); administered by third-party providers.
  • Status: Awards made in 2024; rebates expected late spring 2025. Check the State HEAR Portal.
• Washington Families Clean Energy Credit
  • Amount: $200 one-time rebate (ended September 2024; may renew in 2025).
  • Eligibility: Low-to-moderate-income electric utility customers.

Electric Company HVAC Rebates in Washington State

Major electric utilities in Washington State offer rebates to encourage energy-efficient HVAC upgrades, particularly heat pumps.

Puget Sound Energy (PSE)

• Forced-Air Furnace to Air-Source Heat Pump Conversion
  • Amount: $1,500-$4,000, depending on system efficiency.
  • Eligibility: PSE residential electric customers; must use approved contractor.
• More Info: Visit PSE Rebates.

Seattle City Light

• Heat Pump Program
  • Amount: $300-$600.
  • Eligibility: Residential customers upgrading to efficient heat pumps.
• Clean Heat Bonus Rebate
  • Amount: $4,000 bonus for moderate-income households switching from oil to electric heat pumps (stackable with $2,000 base rebate); available through May 2025 or until funds run out.
  • Eligibility: Income-qualified Seattle residents.
• More Info: Check Seattle City Light.

Snohomish County PUD

• Heat Pump Program
  • Amount: $1,500-$2,500.
  • Eligibility: Residential electric customers installing qualifying heat pumps.
• More Info: See Snohomish PUD Rebates.

Tacoma Public Utilities (TPU)

• Heat Pump Rebate
  • Amount: Up to $2,000.
  • Eligibility: TPU residential customers; varies by model.
• More Info: Visit TPU Incentives.

How to Maximize Your HVAC Rebates in Washington State

To get the most savings:

• Combine federal tax credits with state and utility rebates where allowed.
• Contact your electric company for specific eligibility and application details.
• Hire a qualified contractor familiar with rebate programs.
• Act soon—some rebates, like Seattle’s Clean Heat Bonus, are time-limited.