Top Rebates and Tax Credits for R-32 HVAC Systems in 2025

Why Rebates for R-32 Systems Are Bigger Than Ever in 2025

R-32 refrigerant is taking over in residential HVAC—and government agencies are rewarding early adopters. Between the Inflation Reduction Act, state-level energy programs, and utility company incentives, you could shave thousands off the cost of your next HVAC system if it uses a low-GWP refrigerant like R-32.

Take the Goodman 2-Ton 15.2 SEER2 Heat Pump (model GLZS4BA2410). Paired with the AWST30LU1310 air handler, it’s efficient, reliable, and eligible for multiple rebate layers. But here’s the catch—you’ve got to know where to look and what to document.

Let’s break it down so you can stack your savings smartly.

Federal Tax Credits: The Big One

Under the Inflation Reduction Act (IRA), homeowners can claim up to $2,000 in federal tax credits for qualifying heat pump systems installed in 2023 and beyond. The credit applies to:

• Systems meeting CEE Tier 2 efficiency standards

• Installations in primary residences

• Units installed and operational during the tax year

According to Energy Star, the qualifying equipment must be rated by AHRI and listed on the CEE directory. The Goodman 2-ton R-32 system hits the mark with its 15.2 SEER2 rating and R-32 refrigerant—both key requirements for eligibility.

To claim your credit, you’ll need IRS Form 5695 and a copy of your AHRI certificate, which you can find on ahridirectory.org.

State-Level Incentives: Double Dip When You Can

Many states offer additional incentives to promote energy-efficient HVAC upgrades. For example:

• California’s TECH Clean California program offers rebates up to $3,100 per heat pump installation.

• New York’s Clean Heat Program provides thousands in heat pump incentives through utilities like Con Edison and NYSEG.

• Massachusetts’ Mass Save program offers $10,000 or more for replacing oil or propane heating with qualified heat pump systems.

The key? R-32 is viewed as a future-proof refrigerant, and many rebate programs prefer systems with low-GWP refrigerants.

You can explore local incentives by visiting the Database of State Incentives for Renewables & Efficiency (DSIRE), which tracks HVAC rebates across all 50 states.

Utility Company Rebates: The Hidden Goldmine

Your electric utility company may offer its own cash-back rebates—some instant, some through mail-in programs. These usually require:

• AHRI-verified systems

• Professional installation

• SEER2 and HSPF2 minimum ratings

For example, Duke Energy in the Southeast offers up to $1,000 for qualifying heat pump systems, and Xcel Energy in Colorado and Minnesota has tiered rebates depending on unit size and location.

Most rebates require submission within 60–90 days of installation, so don’t delay.

To find offers in your area, check out Energy.gov’s rebate finder or go directly to your utility’s website and search for "HVAC rebates."

The High-Efficiency Electric Home Rebate Act (HEEHRA)

Still in development as of mid-2025, the HEEHRA program promises up to $8,000 in point-of-sale discounts for low- and moderate-income households upgrading to heat pumps. While not available nationwide just yet, it’s expected to roll out more broadly by year-end.

The idea is to remove upfront barriers for efficient technology by offering income-based instant rebates.

Goodman’s R-32 heat pump systems are likely to qualify once the program launches in your state, thanks to their high efficiency, low-GWP refrigerant, and affordable pricing structure.

How to Qualify: Tips for Maximizing Your Rebate Potential

To make the most of available rebates, follow these steps:

1. Hire a licensed installer. Many programs require installation by a certified contractor.

2. Request AHRI certificate paperwork. This proves your system meets specific SEER2, HSPF2, and refrigerant criteria.

3. Keep all invoices and model numbers. You’ll need them for tax credits and utility programs.

4. Register your equipment with Goodman. This protects your warranty and streamlines rebate processing.

5. Submit early. Deadlines matter, especially for state and utility incentives.

And don’t forget to stack: You can often combine federal, state, and utility rebates for serious savings.

Real-World Savings Example

Let’s say you install the Goodman GLZS4BA2410 heat pump with an AWST30LU1310 air handler in your North Carolina home:

• Federal Tax Credit: $2,000

• Duke Energy Rebate: $900

• State Clean Energy Rebate: $1,200

• Potential Local Municipality Credit: $500

Total possible savings: $4,600

That’s nearly half the cost of the system covered—just by doing a little paperwork and knowing where to apply.

Mark’s Money-Smart Advice: Don’t Assume, Apply

I can’t tell you how many folks leave money on the table because they assume they won’t qualify. Here’s the truth: If you’re upgrading to an R-32 SEER2 heat pump system, there’s a very high chance you qualify for at least one incentive—and likely two or three.

Even if you’ve already installed your system, many rebates are retroactive for up to 6–12 months. Don’t miss out because you didn’t ask.

This is one of the few times in life when the government, utility companies, and manufacturers want to give you money. All you’ve got to do is show the paperwork.

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