Inflation Reduction Act: HVAC Tax Credits & Rebates for Utah 2026

The Inflation Reduction Act (IRA), passed in 2022, provides substantial federal tax credits for home energy improvements including HVAC upgrades. For Utah homeowners planning to replace furnaces, air conditioners, or install heat pumps, these credits can reduce net costs by thousands of dollars.

Utah Utility Rebates — Beyond the equipment itself, Utah utilities offer rebates for high-efficiency HVAC installations. Rocky Mountain Power offers heat pump rebates ($500-$1,000+ in some programs). Dominion Energy offers ThermWise rebates for high-efficiency gas equipment. These are direct rebates — you receive them as a discount or check, not as a tax credit.

Qualifying Equipment — To maximize rebates, install ENERGY STAR-certified equipment that meets the efficiency thresholds set by your utility provider. Heat pumps, high-efficiency furnaces, and smart thermostats are commonly covered. We help you identify which specific models qualify for the best rebates.

Utah-Specific Rebates — Rocky Mountain Power offers Wattsmart rebates for heat pump installation ($500-$1,000+ in some years). Dominion Energy offers ThermWise rebates for high-efficiency gas furnaces. Salt Lake City, Provo, and other cities may have additional municipal rebate programs. Check with your utility company directly for current offerings.

Best Scenarios for Maximizing Rebates — Replace an old system with a high-efficiency heat pump: qualifies for utility rebates of $500-$1,500+. Income-eligible homeowners may also qualify for HOMES rebates covering up to 80% of costs. Net cost on a $12,000 system can drop to $6,000-$8,000 after all available rebates.

Utah utility rebate programs can significantly reduce HVAC replacement costs. If you're planning an HVAC upgrade, check with your utility provider for current rebate offerings and eligibility requirements. We help customers identify and maximize available rebates.