Rebates, Tax Credits & Energy Savings: How Mike Claimed His 2025 HVAC Incentives

When Mike Sanders decided to upgrade his home’s heating and cooling system, he was thinking about comfort, reliability, and efficiency — not rebates or tax credits.

But by the time his Goodman 2 Ton 14 SEER2 Air Conditioner and 96% AFUE Gas Furnace were installed, he discovered that his decision didn’t just make his home more comfortable — it made financial sense, too.

In 2025, energy efficiency incentives for homeowners are at an all-time high. Between federal tax credits, state rebates, and energy savings, Mike turned his HVAC purchase into a year of serious financial return.

💬 “I thought I was just getting a better system,” Mike says. “I didn’t realize Uncle Sam and my utility company would be pitching in to help pay for it.”

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🏛️ 1️⃣ The 2025 HVAC Incentive Landscape

If you’ve upgraded your HVAC system recently, or plan to, 2025 is one of the best times to do it. The U.S. government, along with most states, has rolled out new rebates and tax credits to encourage homeowners to choose energy-efficient equipment.

The two biggest programs Mike took advantage of were:

• The Federal Energy Efficient Home Improvement Credit (25C) under the Inflation Reduction Act (IRA).

• New York’s state-level Clean Heat and Energy Smart programs, which provide cash rebates for efficient gas furnaces and AC units.

Together, they can easily save homeowners $1,500–$2,000 or more on qualified systems — especially if you choose ENERGY STAR® rated models like Goodman’s 96% AFUE furnaces and 14 SEER2 air conditioners.

📘 Reference: IRS – Energy Efficient Home Improvement Credit 25C

“It’s the best time I’ve ever seen for homeowners to make the switch to efficient systems,” Mike says. “It’s like getting rewarded for doing the right thing.”

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💰 2️⃣ What Is the 25C Tax Credit — and Who Qualifies?

The Energy Efficient Home Improvement Credit (25C) is a federal tax incentive renewed and expanded under the Inflation Reduction Act of 2022, continuing through 2032.

It allows homeowners to claim 30% of the cost of qualifying energy-efficient improvements — including HVAC equipment — up to annual limits.

Here’s the breakdown for 2025:

📘 Reference: Energy Star – Federal Tax Credits 2025

The credit applies to both equipment and installation costs, as long as:

• The system is installed in your primary residence (not a rental).

• You own the property.

• The system meets or exceeds ENERGY STAR efficiency ratings.

“The key is the paperwork,” Mike says. “Once I had the model numbers and receipts, the rest was easy.”

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🧾 3️⃣ Mike’s Federal Tax Credit Breakdown

Mike’s Goodman 2 Ton 14 SEER2 Air Conditioner (Model GLXS3BN2410) and 96% AFUE Furnace (Model GR9S960803BN) both qualified for the 25C tax credit.

Here’s what his actual savings looked like:

He claimed the credit using IRS Form 5695 on his 2025 tax return.

📘 Reference: IRS Form 5695 – Residential Energy Credits

“It was just a few extra clicks in my tax software. My refund came back bigger than I expected.”

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⚙️ 4️⃣ The Power of Combining Rebates + Credits

What makes 2025 such a great year for HVAC upgrades is that you don’t have to choose between federal credits and state rebates — you can claim both.

Mike’s installer connected him with the New York State Energy Research and Development Authority (NYSERDA) and National Grid’s energy efficiency rebate programs, which reward homeowners who choose high-efficiency heating and cooling systems.

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🏠 5️⃣ Mike’s State & Utility Rebates

Here’s what Mike received locally:

📘 Reference: NYSERDA – Efficient Heating and Cooling Rebates

That means his total combined savings were:

• $1,350 (federal credits)

• $650 (state & utility rebates)

• $2,000 total incentive value

“Between the credits and rebates, I basically got a $2,000 discount just for buying efficient equipment,” Mike says.

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🧮 6️⃣ Total Payback Timeline: Mike’s Financial Snapshot

Here’s what Mike’s total payback looked like during his first year with the Goodman system:

In other words, Mike’s new Goodman system will pay for itself in under five years — and continue to save money every year after that.

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💻 7️⃣ Step-by-Step: How Mike Claimed His Rebates

Mike kept the process simple. Here’s how he did it — step by step:

🧾 Step 1: Gather Documentation

He saved:

• His installation invoice (showing model numbers and efficiency ratings).

• His manufacturer certificates (downloaded from Goodman’s website).

• Proof of purchase and serial numbers.

📘 Reference: Goodman Product Certification Documents

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💡 Step 2: Register the Products

Mike went online and registered his equipment for warranty and rebate verification within 60 days of installation.
That step ensured he was eligible for both the Goodman parts warranty and the NYSERDA rebate.

📘 Reference: Goodman Product Registration Page

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🧰 Step 3: Submit Rebate Applications

Mike’s installer provided links for both National Grid and NYSERDA rebate forms.
He filled them out online, uploaded his documents, and got confirmation emails within minutes.

Most programs paid out within 6–8 weeks.

“I didn’t need to mail anything — everything was digital and quick.”

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💵 Step 4: File the Tax Credit

When tax season arrived, Mike used Form 5695 to claim his federal credit. His tax software walked him through each step.

He entered:

• Installation date

• Total cost

• Model numbers

• Credit caps for each product

Within weeks, he received an additional $1,350 on his refund.

📘 Reference: IRS Instructions for Form 5695 (2025)

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✅ Step 5: Track Ongoing Energy Savings

The final piece of the puzzle was what Mike calls the “invisible rebate” — the lower utility bills.

“Every month, my gas bill’s down about 15–20%. It’s like getting a rebate every time the furnace kicks on.”

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🌿 8️⃣ Energy Savings: The Bonus Benefit

Rebates and credits are one-time perks — but energy savings last for years.

Mike’s old furnace was 80% efficient. His new Goodman system operates at 96%.
That means it uses 16% less gas to produce the same amount of heat.

At $1.20 per therm (typical in the Northeast), that’s roughly $230/year in savings on gas alone — plus another $60–$100 from improved AC efficiency in summer.

Over 10 years, Mike will save around $3,000 on utilities in addition to the $2,000 in upfront incentives.

 

⚡ 9️⃣ Smart Thermostat Credit: The Easy Add-On

Smart thermostats are one of the easiest ways to earn a bonus credit and increase savings.
Mike’s installer recommended the Ecobee Smart Thermostat Premium, which qualifies for:

• $150 federal tax credit

• $50 local rebate

• ~$70/year energy savings

By integrating it with his Goodman system, he automated heating and cooling schedules based on occupancy and outdoor temperatures.

“It’s like my system knows my schedule. I save money without thinking about it.”

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🧠 🔟 Don’t Miss Out: Common Mistakes to Avoid

Mike learned that a lot of homeowners miss out on thousands simply because they don’t follow a few simple rules.

Common Pitfalls:

• Forgetting to register products within 60 days.

• Not downloading manufacturer certificates.

• Using non-certified installers (required for most programs).

• Submitting rebate applications past the deadline.

• Assuming all high-efficiency models automatically qualify.

Mike’s advice:

“Keep a folder — digital or paper — with every document. Receipts, model numbers, rebate confirmations. It pays off.”

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📈 11️⃣ Long-Term Impact: Efficiency That Pays You Back

Let’s zoom out to see how Mike’s savings stack up over time.

Add to that the increase in home resale value (energy-efficient homes sell for 3–5% more), and it’s easy to see why high-efficiency HVAC systems are one of the smartest upgrades a homeowner can make.

“I didn’t think I’d see that much return on a heating system, but it’s real — and it’s fast.”

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🌎 12️⃣ Environmental Rewards, Too

Every therm of gas saved means less CO₂ released into the atmosphere.

Mike’s system reduces emissions by about 1,600 pounds per year, which over 10 years adds up to:

• 16,000 lbs of CO₂ avoided

• Equal to planting 260 trees

• Or removing two cars from the road

📘 Reference: EPA – Greenhouse Gas Equivalencies Calculator

“It’s good to know my comfort isn’t costing the planet as much anymore.”

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🧾 13️⃣ The Paper Trail: What You’ll Need

To claim your rebates and credits, keep these handy:

1. Installation invoice with date and cost.

2. Manufacturer certificates (AFUE and SEER2 ratings).

3. Proof of payment (receipt or financing statement).

4. Installer’s license or certification number.

5. Rebate confirmation numbers (from utility or state).

Mike’s installer pre-filled most of the rebate forms for him — a service many HVAC companies now include.

“It was plug-and-play. They gave me PDFs of everything I needed for taxes.”

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🧩 14️⃣ Bonus Incentives for Dual-Fuel & Hybrid Systems

The 2025 incentives also cover dual-fuel setups, which combine electric heat pumps with gas furnaces.
While Mike’s system is traditional dual-fuel (AC + gas), homeowners installing hybrid systems can qualify for up to $2,000 in additional rebates.

 

🔋 15️⃣ Why Goodman Systems Qualify So Often

Goodman engineers its systems to meet or exceed ENERGY STAR efficiency criteria, which is why nearly all of their modern models qualify for major incentives.

• Goodman furnaces: up to 98% AFUE

• Goodman ACs: 14.3–17 SEER2

• Verified testing and documentation available online

“Goodman made it easy — every part of my system was already certified. I didn’t have to second-guess.”

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🧮 16️⃣ Your Turn: How to Check Your Eligibility

Homeowners can quickly check eligibility in minutes.

Step 1:

Go to energystar.gov/rebate-finder.

Step 2:

Enter your ZIP code and select “Heating & Cooling.”

Step 3:

Download any relevant rebate forms for your utility provider.

You can also ask your Goodman dealer to help — most are trained to walk homeowners through the process.

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💬 17️⃣ Mike’s Final Takeaway: Efficiency Pays Off

“It’s not complicated. Between the installer and the online tools, I got nearly two grand back and cut my monthly bills. It’s a win from every angle.”

Mike says he’d encourage any homeowner replacing a system in 2025 to take a few extra minutes to research available programs — it’s real money left on the table if you don’t.

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🧭 18️⃣ The Bottom Line: Comfort That Pays for Itself

The Goodman 2 Ton 14 SEER2 Air Conditioner and 96% AFUE Gas Furnace aren’t just high-performing — they’re designed to help homeowners take advantage of every possible financial benefit.

Here’s what Mike’s story shows:

• 💸 $2,000 in combined tax credits and rebates

• ⚡ $230/year in utility savings

• 🌿 1,600+ lbs CO₂ reduced annually

• 🏠 Full payback in under five years

That’s comfort, savings, and sustainability — all working together.

“It’s the first home upgrade I’ve ever had that literally paid me back,” Mike says. “And it’s still paying.”

In the next topic we will know more about: Troubleshooting Guide: What to Do If Your Furnace or AC Stops Working