Hey there—Tony here. If you’re thinking about upgrading to a 3-ton R-32 air conditioner, here’s some good news: you may not have to pay full price.
Thanks to new federal energy laws and local utility programs, homeowners can qualify for rebates, tax credits, and incentives when they install high-efficiency systems—especially those that use next-gen refrigerants like R-32.
Here’s how to find out what’s available and how to qualify.
🏛️ 1. Federal Tax Credits via the Inflation Reduction Act
The Inflation Reduction Act (IRA) extended and boosted energy efficiency tax credits under the 25C Energy Efficient Home Improvement Credit.
Eligible homeowners can claim 30% of installation costs, up to $600 per qualifying AC unit, as a tax credit. R-32 units with SEER2 ratings of 16+ usually qualify.
🔗 IRS Guide to Energy Efficient Home Improvement Credit (Form 5695)
🏠 2. State-Level Rebates and Utility Programs
Many states offer utility-backed incentives to encourage adoption of high-efficiency systems. For example:
-
California offers rebates of up to $800 for ENERGY STAR-certified split systems.
-
New York and Massachusetts offer incentives over $1,000 through utilities like NYSERDA and Mass Save.
-
Even states like Texas, Michigan, and Florida often participate via local electric co-ops.
🔗 DSIRE Database – Find Rebates by ZIP Code
💡 3. ENERGY STAR Certification Is Key
R-32 systems that are ENERGY STAR-certified meet efficiency and environmental standards recognized by the EPA. This is often a baseline requirement for both federal tax credits and utility rebates.
You’ll want to confirm your specific unit is listed and paired correctly (coil + condenser) to qualify.
🔗 ENERGY STAR Central AC Qualified Products List
📋 4. How to Claim Rebates
Here’s what I tell my customers to do:
-
Save the invoice from your R-32 AC purchase and installation.
-
Download rebate forms or submit online through your utility’s website.
-
Use Form 5695 when filing your federal taxes (for 25C credit).
-
If you work with a licensed installer, ask them to help file paperwork—many are already registered with utility programs.
🔗 Rewiring America IRA Savings Calculator (See what you qualify for)
✅ Tony’s Takeaway
If you’re upgrading to an R-32 3-ton AC, don’t leave money on the table. Between tax credits and local rebates, you could save $600 to $1,500—or more—just for choosing a system that’s better for your home and the planet.
Not sure what rebates you qualify for? Reach out to me, and I’ll help you sort through it like I do for my neighbors.
📞 Contact Tony & The Furnace Outlet Team
In the next topic you will know about: Can You Install an R-32 AC With Existing Infrastructure?
