When you hear about new HVAC rebates in 2025, it can sound like free money waiting to be claimed. But before you start shopping for a new heat pump or furnace, it’s important to understand one thing: many of these rebates are tied to your household income and other eligibility rules.
If you’ve ever wondered, “Do I qualify for these rebates?” — this guide will walk you through the income thresholds, program requirements, and steps you can take to avoid missing out.
📘 First time diving into HVAC incentives? Start with our main guide: 2025 HVAC Tax Credits & Rebates Explained.
Why Income Limits Matter for HVAC Rebates
Rebates exist to make high-efficiency systems affordable for more households. Policymakers know that heating and cooling upgrades are a big investment, and many families can’t justify the cost without financial help. That’s where income-based eligibility comes in:
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Low- and moderate-income households usually qualify for the largest rebates.
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Higher-income households may qualify for smaller rebates — or none at all.
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Some programs even adjust rebate size by household size and local cost of living.
This sliding-scale approach ensures that families who need the most help get it, while still encouraging middle-income households to make energy-saving upgrades.
Federal HVAC Rebate Income Limits in 2025
The biggest set of rebates is tied to the Inflation Reduction Act (IRA), which allocates billions for energy-efficient home upgrades. For HVAC systems, income tiers are generally defined as:
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Low-Income: Households earning ≤80% of Area Median Income (AMI) may qualify for the highest rebates, often covering most of the upfront cost.
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Moderate-Income: Households earning 81–150% of AMI may qualify for partial rebates (often 50%).
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Higher-Income: Households earning above 150% of AMI may see limited or no rebate options at the federal level, but can still take advantage of tax credits.
For reference, you can find your AMI by checking the HUD Income Limits Tool. This is the same data the federal government uses to determine eligibility for housing programs and now, for many HVAC rebate programs.
👉 Example: If your area’s AMI is $80,000 for a family of four, households earning $64,000 or less (≤80% AMI) would be considered low-income and likely eligible for maximum rebates.
State and Local Eligibility Rules
While federal programs set the baseline, states and utilities often add their own rebate layers. In some cases, these can stack on top of federal incentives, making HVAC upgrades significantly more affordable.
Examples by Region
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California: Programs like TECH Clean California provide enhanced rebates for heat pumps, especially for low-income households.
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New York & Massachusetts: State programs often mirror federal tiers but may offer additional incentives for moderate-income families.
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Midwest Utilities: Some utilities offer flat rebates for all customers, but add bonuses if you meet income guidelines.
The best way to confirm eligibility is to use the DSIRE database, a free resource that tracks incentives by state and utility company.
Beyond Income: Other Eligibility Rules to Know
Income is only one part of the equation. Most 2025 HVAC rebate programs also look at other factors, including:
Primary Residence vs. Rental
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Many programs apply only to your primary residence.
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Renters may still qualify for certain incentives if their landlord participates.
Energy Efficiency Standards
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Your new system must usually meet ENERGY STAR® or specific SEER2/AFUE ratings.
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You can confirm equipment eligibility on the ENERGY STAR rebate page.
Energy Audits and Pre-Inspections
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Some states require a home energy audit before approving rebate applications.
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This ensures upgrades target the most effective energy-saving opportunities.
Rebate Caps and Frequency
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Programs may limit how often you can apply (e.g., one rebate every five years).
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Some set maximum rebate caps per household or per year.
How to Check If You Qualify
Don’t guess — take these steps to verify eligibility before making your purchase:
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Check Your Household Income Against AMI
Use the HUD AMI lookup tool to find your local median income. -
Adjust for Household Size
A family of four may qualify at a higher dollar amount than a single homeowner. -
Review Program-Specific Rules
Visit your state energy office, utility company, or U.S. Department of Energy Energy Saver for exact requirements. -
Confirm Equipment Meets Standards
Double-check SEER2, AFUE, and ENERGY STAR ratings before buying. -
Ask Your Contractor
Many HVAC installers are rebate partners and will handle paperwork on your behalf.
Pro Tips for Maximizing Your Rebate
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Combine rebates and credits. Even if income limits reduce your rebate, you may still qualify for federal tax credits (worth up to $2,000 for heat pumps). See the ENERGY STAR federal tax credit page.
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Time your project. Some programs have annual funding caps. Apply early in the year before funds run out.
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Keep documentation. Save receipts, model numbers, and audit reports — missing paperwork is a common reason for denied applications.
📘 Next up: How to Combine Utility Rebates with Federal HVAC Tax Credits.
The Bottom Line
Income limits and eligibility rules may feel like red tape, but they’re designed to make rebates more accessible to families who need them most. Even if you earn above the “low-income” threshold, you can still save with partial rebates, tax credits, or state-level programs.
The key takeaway? Don’t assume you’re ineligible — check your AMI, confirm local rules, and talk with your installer. You might be surprised at how much you can save on your 2025 HVAC upgrade.
Alex Lane
Your Home Comfort Advocate
