Michigan Heating Rebates & Tax Credits for Homeowners

Have you considered investing in energy-efficient home comfort improvements to save money on utility bills? Thanks to the Inflation Reduction Act (IRA), Kent County homeowners can now access efficient HVAC tax incentives, including heating system rebates, furnace rebates, and tax incentives.

When you improve the heating system in your Grand Rapids or Comstock Park home, you can take advantage of tax credits under the IRA that went into effect on January 1, 2023. With available tax credits and HVAC tax rebates of up to $14,000, making your home more energy-efficient has never been more accessible or affordable.

Call 616-458-7304 to learn more about the IRA, tax credits, and rebates available or schedule HVAC upgrades in Michigan.

Available Heating Tax Rebates & Incentives

The IRA’s federal tax credits are available to homeowners nationwide through the end of 2032. You can receive up to $3,200 annually for buying and installing energy-efficient heat pumps, heat pump water heaters, insulation, gas furnaces, and boilers.

How much can you save overall? A two-member Michigan household could receive:

• HVAC: $2,000 toward a heat pump.
• Home energy audits: $150
• Water heaters: Up to $2,000 for heat pump water heaters, with additional rebates for gas and propane water heaters and biomass and hot water boilers.

Rebates and incentives covering 50% to 100% of the cost of installing new appliances are available for qualifying:

• Heat pumps
• Gas furnaces
• Gas boilers

Low-income households qualify for additional rebates, and every homeowner, regardless of income, can receive 30% tax credits for energy-saving equipment like upgraded electrical panels, solar battery storage, and residential EV chargers.

Rebates Programs: A Guide

Michigan’s Energy Smart program offers residential customers throughout the state an opportunity to earn rebates on qualifying purchases, and you can apply online! The Michigan Saves program is a convenient way to finance your energy-saving improvements. Rebates cover numerous ENERGY STAR® appliances, including gas furnace rebates and tax incentives, as well as:

• High-efficiency central air conditioners
• Heat pumps
• Packaged units
• Boilers
• Ductless mini-splits
• Geothermal systems

Ready to start saving? Talk to a professional heating services company about performing a home energy audit to get the ball rolling.

Who Can Apply for These Rebates?

Here’s a recap of what you need to know about qualifying for Michigan’s federal and state home comfort rebates:

• Tax credits are available for purchased and installed products through December 31, 2032.
• You can claim 30% of an HVAC project’s cost, including up to $2,000 for heat pumps and $600 for furnaces, boilers, and central air conditioners.
• All ducted air-source heat pumps with the ENERGY STAR® label are eligible.

Schedule Heating Services With Schaafsma Heating & Cooling

Upgrading or replacing the heating system in your Kent County home with newer, more efficient equipment reduces energy consumption and aligns with the IRA’s goal of promoting sustainable practices and lowering carbon emissions. The skilled professionals at Schaafsma Heating & Cooling will install a new furnace, boiler, heat pump, or complete HVAC unit at your Grand Rapids or Comstock Park home and help you claim the rebates and incentives you’re entitled to.

One last word of advice: While some DIY projects qualify for specific incentives, others require homeowners to work with a professional installer. Schaafsma Heating & Cooling has delivered superior heating and cooling services that reflect our commitment to excellence for over a century.