If you’ve been researching HVAC tax credits, most of what you’ll find online is out of date and confusing for homeowners to understand. That’s why our Loganville HVAC company is here to help you understand the current picture.

The federal tax credit has ended. The Energy Efficient Home Improvement Credit (Section 25C), created under the Inflation Reduction Act of 2022, expired for equipment placed in service after December 31, 2025. It was eliminated by the One Big Beautiful Bill Act, signed July 4, 2025. The companion Residential Clean Energy Credit (Section 25D), which covered geothermal heat pumps and solar, ended on the same date.

What does that mean for Georgia homeowners? if your new system was installed on or before 12/31/2025, you can still claim it (up to $3,200) on your 2025 return. If you’re installing in 2026, there is no federal tax credit available.

The good news: Georgia’s rebate programs are still funded and still paying out. For many households they’re worth significantly more than the old tax credit ever was, and unlike a credit, you don’t wait until tax season to see the money.

Georgia received Inflation Reduction Act funding to run two rebate programs, administered by the Georgia Environmental Finance Authority (GEFA). Both are active in 2026 and are beneficial to Georgia households.

The Home Electrification and Appliance Rebate covers specific equipment upgrades for income-qualified households. You may see this called HEEHRA or the High-Efficiency Electric Home Rebate Act, formerly the Zero-Emission Homes Act. It’s all the same program.

• Below 80% of your county’s Area Median Income: up to 100% of total project cost covered
• 80% to 150% of Area Median Income: up to 50% of total project cost covered
• Heat pumps: up to $8,000
• Total household cap: up to $14,000 across all eligible measures

Eligible upgrades include heat pumps for heating and cooling, heat pump water heaters, electrical panel and wiring upgrades, and insulation and air sealing.

Home Efficiency Rebates (HER) rewards whole-home energy savings rather than specific equipment and is available at all income levels. Rebates scale with how much energy your retrofit saves and your household income, reaching up to $16,000 for the highest-saving projects in income-qualified households.

Important deadline: fuel-switching projects end August 10, 2026

On May 29, 2026, the U.S. Department of Energy issued updated guidance (Program Notice 26-2) that changes what HEAR will cover. Fuel-switching projects, meaning replacing a gas furnace with an electric heat pump, must be submitted by 10:00 a.m. ET on August 10, 2026. After that date, HEAR will only cover electric-to-higher-efficiency-electric upgrades and new construction.

If you currently heat with gas or propane and you’ve been considering a heat pump installation in Georgia, this is the deadline that matters. Paperwork must be in, so there’s no time to sit on a decision. Call us and we’ll get your scope of work submitted!

The following rebates stack on top of the state programs, and most have no income requirement at all.

• Walton EMC members can get a $200 rebate for converting a fossil fuel heating system to an all-electric heat pump, plus $200 for a heat pump water heater. Dual-fuel heat pumps aren’t eligible.
• Jackson EMC members can get up to $400 for installing a qualified all-electric ENERGY STAR heat pump, plus up to $1,400 in rebates tied to completing a home energy evaluation and making the recommended improvements.
• Georgia Power customers can access the Home Energy Improvement Program (HEIP), which pays up to 50% of project cost on qualifying improvements, including up to $1,000 for an air-source heat pump conversion. Applications must be submitted within 60 days of your paid invoice.

Not sure who serves your address? Contact us and we’ll help figure it out and tell you which rebates you qualify for.

Rebate eligibility now runs through two things: the Department of Energy’s Qualified Electrification Project (QEP) standards for HEAR, and each utility’s own efficiency requirements. In nearly every case, that means ENERGY STAR® certified equipment. The old Inflation Reduction Act product grids that circulated under the federal tax credit are no longer the list to check, so if you’ve bookmarked one, set it aside.

Georgia sits in the DOE’s South region for minimum efficiency standards, which affects the ratings your equipment needs to hit. Below are the required minimum efficiency standards for various hvac equipment.

Heat pumps are where the money is. They’re the highest-value rebate in the state, and they’re the best fit for Georgia’s climate since one system handles both heating and cooling. Current ENERGY STAR certification thresholds for heat pump installation in Georgia include:

• Split-system heat pump: SEER2 15.2 or higher, EER2 11.0 or higher, HSPF2 7.8 or higher
• Single-package heat pump: SEER2 15.2 or higher, EER2 10.0 or higher, HSPF2 7.2 or higher

Through Georgia’s HEAR program, income-qualified households can receive up to $8,000 toward a qualifying heat pump. Walton EMC members can add $200 for a fossil-fuel-to-electric conversion, Jackson EMC members up to $400, and Georgia Power customers up to $1,000 through HEIP.

A new air conditioning system should meet these ENERGY STAR thresholds for the South region:

• Split-system air conditioner: SEER2 16.0 or higher, EER2 12.0 or higher
• Packaged air conditioner: SEER2 15.2 or higher, EER2 11.5 or higher

Worth knowing: a straight AC replacement does not qualify for HEAR, because that program funds electrification, not cooling upgrades. Utility rebates and manufacturer promotions are your savings path here. If you’re replacing an aging AC anyway, ask us to price a heat pump alongside it. The rebate math often makes the heat pump the cheaper option out of pocket.

This is the part of the market that has changed most. There is currently no federal tax credit or state rebate available for a high-efficiency gas furnace. The 97% AFUE threshold that used to earn a $600 federal credit went away when Section 25C expired at the end of 2025, and Georgia’s rebate programs only fund electric equipment.

If you need a furnace installation, a high-efficiency model still cuts your monthly gas bill and it’s still the right call for plenty of homes. Just go in knowing the incentive isn’t there anymore. We’ll give you an honest side-by-side against a heat pump so you can compare true lifetime cost, not just sticker price.

Ductless mini-splits come in both heat pump and cooling-only configurations, and the heat pump versions are HEAR-eligible. They’re a strong fit for additions, bonus rooms, garages, and older Loganville homes where running ductwork isn’t practical.

• Ductless mini-split heat pump: SEER2 15.2 or higher, HSPF2 8.5 or higher for non-ducted systems
• Ductless mini-split AC: SEER2 16.0 or higher, EER2 12.0 or higher

The process is genuinely simpler than the old tax credit, because you’re not waiting on a tax return. Below is some more information on receiving your rebate. Have any questions? The team at Arctic Circle is ready to help!

HEAR rebates are applied at the point of sale. Your rebate comes off the invoice as a discount, so you pay less up front and there’s no form to file with the IRS. You’ll need to provide proof of income, proof of purchase, and installation documentation, and the work generally has to be done by a GEFA-approved contractor. Georgia also offers a limited DIY pathway for certain appliances.

Utility rebates are submitted after the fact. Georgia Power’s HEIP requires your application within 60 days of your paid-in-full invoice. Walton EMC and Jackson EMC ask that you contact them before installation, so loop us in early and we’ll coordinate.

If your system was installed on or before December 31, 2025, you can still claim the federal credit on your 2025 return using IRS Form 5695, up to $3,200. That’s the last year it applies. There’s no longer an annual credit you can claim year after year, so any content you find describing that is out of date.

Arctic Circle Air has been installing high-efficiency equipment across Loganville and North Georgia since 2007. We’ll tell you exactly which programs you qualify for before you commit to anything. To learn more about HVAC rebates in Georgia, give us a call today at 770-874-2529.