If you're considering installing a Goodman 20 kW electric furnace (MBVK20DP1X00-HKTAD201), you may be wondering: Can I get any tax credits, rebates, or financial incentives for going electric? In this full guide, Tony breaks down what’s available for 2025 and how homeowners can maximize their savings
If you're considering installing a Goodman 20 kW electric furnace (MBVK20DP1X00-HKTAD201), you may be wondering: Can I get any tax credits, rebates, or financial incentives for going electric? In this full guide, Tony breaks down what’s available for 2025 and how homeowners can maximize their savings.
📜 The Big Picture: Incentives for Electrification in 2025
The U.S. federal government and many states are strongly encouraging homeowners to electrify their homes as part of broader climate policy goals.
✅ Heat pump systems = highest rebates
✅ Home electrical panel upgrades = major incentives
✅ Insulation & weatherization = still highly rewarded
✅ Pure electric resistance furnaces = limited federal rebates, but local opportunities exist
(Source: Energy.gov Home Energy Rebates)
"Electric resistance heating doesn’t get as much love as heat pumps when it comes to rebates—but there’s still some real money on the table if you play it smart," Tony explains.
💰 Federal Tax Credits for Electric Furnaces (2025)
Under the current federal Inflation Reduction Act (IRA) of 2022, most of the largest tax credits apply to:
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High-efficiency heat pumps
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Geothermal systems
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Energy-efficient building envelope upgrades
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Electrical service upgrades
Electric resistance furnaces (like Goodman 20 kW MBVK models):
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✅ May qualify indirectly when bundled with insulation, panel upgrades, or hybrid systems
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❌ Do not typically qualify as a standalone system for the 30% Energy Efficiency Home Improvement Credit
(Source: IRS Energy Efficient Home Improvement Credit)
"If you're replacing your electrical panel as part of your electric furnace install, you may be eligible for substantial federal credits there," Tony advises.
⚡ Home Electrification Rebates (High-Efficiency Electric Home Rebate Act - HEEHRA)
This income-based program offers:
| Upgrade Type | Maximum Rebate |
|---|---|
| Electrical panel upgrade | $4,000 |
| Whole-home electrification wiring | $2,500 |
| Weatherization (insulation, air sealing) | $1,600 |
| Heat pump space heating (not resistance heat) | $8,000 |
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Only available to certain income brackets (low- to middle-income households)
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Administered at state level
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May apply indirectly to furnace installs that require panel upgrades or wiring work
(Source: DOE HEEHRA Program Details)
"The wiring and panel upgrades for your furnace install may be fully covered under these rebates if you qualify," Tony notes.
🏠 State & Local Rebates: Where the Real Opportunities Are
Many states and utilities are offering additional rebates for full electrification or load-reduction programs, including:
✅ Weatherization rebates (insulation, duct sealing, air sealing)
✅ Peak demand management programs
✅ Renewable energy integration rebates (solar + electric furnace combos)
✅ Off-peak electric rates for heating systems
Example State Programs (2025):
| State | Program |
| California | TECH Clean California Electrification Rebates |
| New York | NYSERDA Clean Heat Program |
| Massachusetts | Mass Save Whole Home Electrification |
| Vermont | Efficiency Vermont Weatherization Assistance |
"State and utility programs can be very generous, but you have to hunt them down and often pre-qualify before starting your project," Tony emphasizes.
(Source: DSIRE USA Incentive Database)
🔧 Panel Upgrades: Often Required, Often Incentivized
Because the 20 kW Goodman MBVK electric furnace draws ~83 amps at 240 volts, many older homes require:
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Panel upgrades from 100A to 200A service
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New high-amperage breakers
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Heavy-gauge wiring installation
These electrical upgrades often qualify for state and federal incentives under:
✅ Energy Efficient Home Improvement Credit (25C)
✅ HEEHRA income-based rebates
✅ Utility electrification programs
(Source: NFPA National Electrical Code)
"In many projects I install, the electrical panel upgrade actually triggers more rebate dollars than the furnace itself," Tony shares.
🌬 Combining Electric Furnace with Heat Pump for Maximum Incentives
Pairing an electric furnace with a heat pump creates a hybrid dual-fuel system that opens up full federal tax credits:
| System Type | Federal Incentive Eligibility |
| Standalone Electric Furnace | Limited (indirect upgrades only) |
| Heat Pump (Hybrid) System | 30% up to $2,000 credit |
"If you’re thinking long-term efficiency, adding a heat pump above your electric furnace gives you both comfort AND serious rebate potential," Tony advises.
(Source: Energy Star Heat Pump Tax Credits)
🧮 Potential Savings Scenario (Sample Cold Climate Upgrade)
| Project Component | Cost | Incentive |
| Goodman 20 kW MBVK Furnace | $2,000 | N/A |
| Panel Upgrade | $2,500 | $2,500 (HEEHRA) |
| Insulation Upgrade | $1,600 | $1,600 (HEEHRA) |
| Heat Pump Addition | $8,000 | $2,000 (IRA Tax Credit) |
Total Out-of-Pocket Savings: $6,100 potential incentives
"Combining multiple upgrades can help you stack the maximum savings, even if your furnace alone doesn’t qualify directly," Tony explains.
⚠ Watch Out for These Common Incentive Mistakes
❌ Not checking income eligibility for rebate tiers ❌ Starting work before program pre-approval ❌ Using non-certified installers voids rebates ❌ Missing tight application deadlines
"Rebates require paperwork, patience, and planning—but they’re worth the effort," Tony says.
🏷 Where to Start Your Incentive Search
✅ DSIREUSA.org (Database of State Incentives) ✅ Energy.gov Home Rebates Portal ✅ Your state energy office website ✅ Your electric utility company rebate department ✅ Accredited HVAC contractors familiar with 2025 programs
"The best installers know exactly which rebates you qualify for—they deal with this paperwork every day," Tony emphasizes.
🔧 Tony’s Bottom Line
"A Goodman 20 kW electric furnace gives you simple, reliable heat. While federal tax credits focus heavily on heat pumps right now, you may still score serious rebates when you include your electrical panel, insulation, or hybrid systems in your upgrade plan. The key is bundling wisely—and starting with your rebate research BEFORE you buy."
In the next article we will know about: Is a 20 kW Electric Furnace Right for Your Home? Sizing and Load Considerations
