State and utility incentives
State energy offices, utility rebates, and how to find what applies to you.
What does this topic cover?
State energy offices, utility rebates, and how to find what applies to you.
This section gathers 2 published questions on the topic. Each carries a safety verdict where one applies, and every regulatory claim traces to DOE, EPA, the IRS or ACCA with the date it was verified.
Is there any incentive money available?
Before you let an incentive influence the decision, check that it exists. There is currently no federal tax credit for a residential heating or cooling system. Sections 25C and 25D were terminated by Public Law 119-21, 139 Stat. 72 (July 4, 2025) for property placed in service after 2025-12-31.
Much of this industry still advertises “the $2,000 heat pump tax credit”. If a proposal offsets its price with that credit, it is using a number that no longer exists, and the difference comes out of your pocket rather than theirs.
What does remain are the Home Energy Rebates under the Inflation Reduction Act, which are a separate authority administered by each state. These are state-run programs. Whether one is open, what it pays, and who qualifies depends on your state and sometimes on your utility. Check your state energy office and the U.S. Department of Energy's state status page before you assume a rebate applies. Do not let a contractor tell you what you qualify for — verify it with the administering authority. What expired and what remains.
Which efficiency numbers can you actually compare?
If you are comparing efficiency figures, check which generation they belong to first. On January 1, 2023 DOE changed the test procedure and renamed three metrics: SEER became SEER2, EER became EER2, and HSPF became HSPF2. The current procedure measures at a higher external static pressure, much closer to what equipment meets once installed in a real house on real ductwork.
DOE is explicit about the consequence: “Although SEER2, HSPF2, and EER2 ratings are similar to ratings using the original metrics, they are not directly comparable. Compliance with the new standards for each model must be determined based on its measured SEER2, HSPF2, or EER2.” In practice: a SEER figure from a 2019 article cannot tell you whether a quote reading SEER2 is good, bad or identical.
That is why we publish no conversion factor. We do not publish a SEER-to-SEER2 conversion factor. DOE states that ratings on the new metrics are "not directly comparable" to ratings on the original metrics, and that compliance must be determined from the measured SEER2, EER2 or HSPF2 value. Approximate multipliers circulate widely, but they vary by equipment type and configuration, and using one to compare an old article's number against a number on today's quote is how homeowners end up believing they were offered less efficiency than they were. Compare like with like: ask for the SEER2 figure, and check it against the AHRI certificate.
The nationwide minimum for a split-system air conditioner is 13.4 SEER2, and for a split-system heat pump 14.3 SEER2 with 7.5 HSPF2. What each metric measures · minimums by region and state.
What actually drives the cost?
We publish no national average price, and the reason matters: an average across every house, region and system type is not a number you can act on. A replacement that includes duct modification, an electrical upgrade and a permit is a different job from a straight swap, and both read as “system replacement” on a one-page proposal.
What actually drives your number:
- Equipment capacity and tier, which should come from the Manual J rather than the old nameplate.
- The ducts — whether they can move the air the new equipment needs, and what it costs if they cannot.
- Electrical work, if a circuit or panel change is required.
- Permit and inspection, usually required.
- Refrigerant — current equipment uses R-454B or R-32; remaining pre-2025 R-410A stock may price differently.
How can you verify any of this yourself?
Everything regulatory on this site traces to a primary source and carries the date it was read: DOE for efficiency standards, EPA for refrigerants and Section 608, the IRS for tax credits, and ACCA for load calculation. The sources for this page are listed at the end with the date each was consulted.
If you find a different figure elsewhere, check two things before deciding which to believe: whether the page says which generation its efficiency metric belongs to, and whether it carries a visible review date. Most of the outdated content in this category fails both tests.