HVAC rebates & tax credits for MD, DC & VA

Upgrading to a high-efficiency heat pump or AC isn't cheap — but between federal tax credits and state and utility rebates, a DMV homeowner can take real money off the price. The trick is knowing what stacks. Here's the lay of the land for Maryland, D.C., and Virginia.

1. The federal tax credit (everyone starts here)

The federal Energy Efficient Home Improvement Credit (25C) rewards homeowners for installing qualifying high-efficiency equipment. In recent years that's meant a credit worth up to $2,000 for a qualifying heat pump and up to several hundred dollars for a qualifying high-efficiency AC or furnace, claimed on your federal taxes. The equipment has to meet specific efficiency tiers, so the model matters — we'll help you pick one that qualifies. Always confirm the current year's limits with your tax professional, since the program's caps and rules can change.

2. Your state & utility programs

On top of the federal credit, each part of the DMV has its own programs — usually run through your utility:

• Maryland (EmPOWER Maryland): utilities like BGE, Pepco, and SMECO offer rebates on qualifying high-efficiency heat pumps, AC systems, and smart thermostats. Maryland has also offered enhanced heat-pump incentives in recent program years.
• Washington, D.C. (DCSEU): the DC Sustainable Energy Utility provides rebates and instant discounts on efficient HVAC equipment for District residents.
• Virginia (Dominion Energy): Dominion's residential programs include rebates and incentives tied to efficient heating and cooling and smart thermostats.

Newer federal home-energy rebate programs (funded through the Inflation Reduction Act) are also rolling out state by state, with extra savings for many households. Availability and amounts depend on where you live and when you install, so it's worth checking what's live at the time of your project. We install eligible high-efficiency equipment as part of our AC replacement and heating upgrade work.

3. Don't leave money on the table

A few things that trip people up:

• Efficiency tier matters. Only equipment that hits the program's rating qualifies — a slightly different model can be the difference between getting the credit and missing it.
• Keep your paperwork. Save the invoice and the manufacturer's certification statement; you'll need them at tax time.
• Timing matters. Programs open, close, and change amounts year to year. Confirm what's current before you buy.

We'll do the legwork with you

Figuring out which incentives you qualify for shouldn't be a research project. When we quote a system, we point you to the rebates and credits that fit your home and equipment, and we install models that qualify. Pair that with a look at whether it's time to replace and you've got the full financial picture. We serve every neighborhood on our DMV service map.