Georgia homeowners can take advantage of the federal 25C Energy Efficient Home Improvement Tax Credit, which provides a 30% credit on the total cost—including installation—of qualifying high-efficiency HVAC systems. Valid through 2032, this incentive includes annual limits: up to $2,000 for heat pumps, $600 for furnaces or AC units, and a $3,200 maximum total per household each year. To qualify, the equipment must meet strict efficiency standards and be professionally installed. Claiming the credit requires filing IRS Form 5695 and keeping all receipts and certifications, with added documentation required starting in 2025.
Tax Credits and Home Energy Improvement Programs
Georgia's Home Energy Rebates
Available Now
25C HVAC Tax Credit Overview
The federal Energy Efficient Home Improvement Credit, commonly referred to as the 25C tax credit, offers substantial incentives for Georgia homeowners investing in high-efficiency HVAC systems. This credit, effective from January 1, 2023, through December 31, 2032, allows homeowners to claim 30% of the cost of qualifying energy-efficient improvements, with specific annual limits.
Credit Amount:
30% of the total cost (including installation) for qualifying HVAC systems.
Annual Limits:
- $2,000 for eligible heat pumps and heat pump water heaters.
- $600 for qualified air conditioners, furnaces, and boilers.
- $1,200 combined annual limit for certain energy-efficient home improvements, including insulation, windows, doors, and other HVAC components.
- $3,200 maximum total annual credit per household
Eligibility Criteria:
- Equipment must meet or exceed the highest efficiency tier established by the Consortium for Energy Efficiency (CEE), excluding any advanced tiers.
- Installation must be performed by a licensed professional.
- Applicable to both primary and secondary residences located in the United States.
- No income restrictions apply
Claiming the Credit:
- File IRS Form 5695 with your federal tax return.
- Retain all receipts and manufacturer certifications.
- Starting in 2025, include the Product Identification Number (PIN) or Qualified Manufacturer (QM) code for each eligible item on your tax return
Home Energy Improvement Program
Georgia Power's 2023 Home Energy Improvement Program has rebates for your qualifying energy efficiency improvements. Below are improvements we thought may be of interest. For additional information on rebate application requirements, please email us at CS@DaycoSystems.com.
For Single Family & Manufactured Homes:
Mini-Split & Ground Source Heat Pumps
50% of cost up to $1,000
- Must be ENERGY STAR certified as either Ductless Mini-Spilt Heat Pump or Geothermal Heat Pump
Smart Thermostat
50% of cost up to $75 for single family homes
- Must be ENERGY STAR certified
Heat Pump Water Heater
50% of cost up to $500
- Must be ENERGY STAR Certified
Duct Sealing
50% of cost up to $300
- Majority of ducts must be in unconditioned space
- A DET verifier must complete duct system testing and provide verification of a greater than or equal to 30% improvement in CFM25
- Pre and Post CFM25 are required in the rebate application
Attic Insulation
50% of cost up to $250
- Existing attic insulation must be less than R-19
- Insulation must be installed across the entire attic structure
- Add greater than or equal to R-38 and / or improve to comply with code as the structure allows
- Homes with combustion appliances must pass combustion safety testing by a program contractor
