HVAC Rebates and R‑32: How to Maximize Tax Credits in 2025

Introduction: Ready to Save Big on Your Next HVAC System? 

Let’s be real—HVAC upgrades aren’t cheap. A good 3-ton system like the Goodman GLXS4BA3610 is an investment, especially if you're upgrading to an R‑32 model with the latest SEER2 efficiency. But here’s the good news: there’s real money on the table if you know where to look.

Between federal tax credits, local utility rebates, and state-level energy incentives, homeowners in 2025 have more ways than ever to cut the upfront cost of a new high-efficiency HVAC system. The trick is knowing how to qualify—and how to stack these programs for maximum savings.

That’s what we’re diving into today. Let’s talk about how R‑32 systems like Goodman’s newest lineup are designed to fit these programs, what documentation you’ll need, and where to find rebates in your area.

What Makes R‑32 Systems Eligible for Rebates? 🧊

First things first: R‑32 refrigerant isn’t just more environmentally friendly. It’s also the key to unlocking efficiency levels that meet the criteria for financial incentives.

Here’s why:

• R‑32 has a lower Global Warming Potential (GWP) than R‑410A—around 675 vs. 2,088

• It’s used in SEER2-compliant systems, meaning higher energy efficiency

• It’s part of the movement toward A2L refrigerants, which many rebate programs now prioritize

In short, switching to an R‑32 system means you’re not only ahead of the environmental curve—you’re also in a better position to qualify for rebates, credits, and discounts.

For background, the U.S. Department of Energy’s Inflation Reduction Act (IRA) guidelines highlight low-GWP refrigerants and high-efficiency equipment as key targets for rebates and tax credits.

🏛️ Federal Tax Credits: What You Can Claim in 2025

The 25C Residential Energy Efficiency Tax Credit—extended and expanded under the Inflation Reduction Act—is your first big opportunity.

Here’s what it offers:

• Up to 30% of project cost, capped at $600 for AC systems and $2,000 for heat pumps

• Equipment must meet CEE Advanced Tier standards

• Systems must be installed in your primary residence

• Installation labor is included in the eligible cost

• Tax credit resets every year—so you can claim again for other upgrades like insulation, windows, etc.

To qualify, your system must meet or exceed these benchmarks:

• SEER2 of at least 15.2 for AC

• EER2 of at least 12

• Use of a refrigerant with low GWP, like R‑32

You’ll need IRS Form 5695 and a copy of the manufacturer’s certification statement. Goodman provides these for each eligible model on their warranty and documentation portal.

Don’t forget—these are credits, not deductions. That means you reduce your tax liability dollar for dollar. If you owe $2,000 in taxes and claim a $600 credit, you now owe $1,400. 

💡 State & Local Rebates: Digging for Gold Near Home

While the federal tax credit is great, your state and local utility providers often offer the biggest savings. Some states give $1,000+ rebates for switching to high-efficiency or low-emissions HVAC systems.

Here are a few examples:

• California (CEC and local utilities): Offers rebates up to $1,200 for qualifying heat pumps and central AC units

• New York (NYSERDA): Up to $1,000 for ENERGY STAR-certified AC units with low-GWP refrigerants

• Massachusetts (Mass Save Program): Offers up to $1,250 for central ACs with SEER2 ratings above 15

• Texas (Oncor, CenterPoint): Up to $900 in rebates based on tonnage and efficiency tier

To find local offers, use the Energy Star Rebate Finder Tool, which pulls from utility programs across the U.S.

Also check out the Database of State Incentives for Renewables & Efficiency (DSIRE), the most comprehensive rebate database out there.

⚖️ Comparing R‑410A and R‑32: Which Gets More Rebate Love?

Let’s be honest—rebate programs are designed to reward long-term savings and environmental benefits. That’s where R‑32 shines.

Here’s a side-by-side look:

Bottom line: R‑32 is often required to meet Advanced Tier standards—and those are what unlock the big tax credits and rebates.

📝 What You’ll Need to Claim Your Credits

Before you rush to file, make sure you’ve got everything in order:

1. Manufacturer’s Certificate of Compliance

   • Goodman provides this for models like the GLXS4BA3610

2. AHRI Certificate Match

   • Confirms your indoor and outdoor components are properly rated together

   • Check AHRI Directory for your match-up

3. Proof of Installation

   • Licensed contractor invoice, including model numbers and labor cost

4. IRS Form 5695

   • Fill this out during tax season to claim your federal energy credit

Pro tip: Ask your installer upfront for these documents—don’t wait until tax time. Many states also require post-install inspection to approve rebates.

🔧 Rebates for DIY vs. Pro Install: Know the Rules

This is big: most rebate programs require professional installation by a licensed contractor. DIY installs may save on labor but usually disqualify you from incentives.

Here’s why:

• Pros are required to follow local code and efficiency specs

• They provide AHRI-matched systems and documentation

• Many programs require permits, safety inspections, and load calculations (Manual J)

That’s not just bureaucracy—it ensures your system performs the way it should. Plus, Goodman’s warranty requires licensed install to remain valid.

💬 Can You Stack Rebates and Credits? Heck Yes.

You can absolutely combine:

• Federal tax credits (Form 5695)

• State or utility rebates

• Manufacturer promotions

• Local energy-efficiency grants or low-interest loans

Let’s say you install the GLXS4BA3610 and qualify for:

• $600 federal tax credit

• $800 utility rebate

• $200 from a local energy efficiency program

You’re $1,600 ahead, not counting energy savings down the road.

In some states (like California or Vermont), you may also qualify for point-of-sale discounts through programs like TECH Clean California or Efficiency Vermont. That means rebates come off your invoice immediately, no waiting.

🧮 Real Example: Rebate Scenario With Goodman GLXS4BA3610

Let’s say you’re in Austin, TX—hot summers, strong utility programs, and you’re swapping out a 15-year-old R‑22 system.

You install:

• Goodman GLXS4BA3610 (14.4 SEER2)

• Matching indoor coil and air handler

• Cost: $5,800 installed

Now here’s your rebate stack:

• Federal tax credit (25C): $600

• Austin Energy Rebate: $850

• Potential local sustainability program bonus: $300

• Total Incentives: $1,750

Effective Cost: $4,050

That’s a 30% reduction in real cost—and you’re upgrading to a modern, R‑32, SEER2-rated system built to last.

💬 Common Questions About HVAC Rebates

Q: Do I get the rebate or does my contractor?
A: Some rebates go directly to the homeowner (after install). Others are point-of-sale and applied by the contractor—always ask first.

Q: Can I claim rebates for rental properties?
A: Sometimes. The federal tax credit only applies to primary residences, but many utility programs include multi-family or rental properties.

Q: What if my system is under 15.2 SEER2?
A: You may still qualify for smaller rebates, but won’t hit the big tax credit threshold. Consider upsizing to a higher-SEER2 match-up if possible.

Q: Do I need to wait until tax season to benefit?
A: Yes for federal tax credits. But utility rebates often come within 4–8 weeks, depending on your local program.

Final Thoughts: Your R‑32 System Can Pay for Itself Faster 💡

Let’s recap: If you’re upgrading your HVAC system in 2025, rebates and tax credits are your best friend. R‑32 units like the Goodman GLXS4BA3610 are built to meet the toughest efficiency and refrigerant standards, which puts you in the sweet spot for savings.

Between federal programs, state incentives, and utility rebates, you could save over $1,000 or more—not to mention years of lower energy bills.

⚙️Stay sharp. Stay efficient. Stay ahead. - Mark⚙️