Upgrading your HVAC system is expensive, but there is real money available to offset the cost. Here is what Pittsburgh homeowners can take advantage of in 2026.
Federal Tax Credits (Inflation Reduction Act)
The Energy Efficient Home Improvement Credit (Section 25C) lets you claim a percentage of qualifying HVAC upgrades on your federal tax return.
Heat pumps (air-source, including mini-splits):
- 30% of total cost, up to $2,000 per year
- Must meet CEE highest efficiency tier requirements
- This is the biggest single incentive available
Central air conditioners:
- 30% of cost, up to $600 per year
- Must meet ENERGY STAR Most Efficient criteria
Gas furnaces:
- 30% of cost, up to $600 per year
- Must be ENERGY STAR certified (97% AFUE or higher for the credit)
Boilers:
- 30% of cost, up to $600 per year
- Must be ENERGY STAR certified
Important: This is a tax credit, not a deduction. A $2,000 credit reduces your tax bill by $2,000. It does not carry over to the next year, but you can claim it every year you make qualifying upgrades.
Pennsylvania State Programs
Pennsylvania offers several programs that Pittsburgh homeowners can access:
PACE (Pennsylvania Act for Clean Energy). Financing program for energy efficiency upgrades including HVAC. Low-interest loans repaid through property tax assessments.
Weatherization Assistance Program. Income-qualified Pittsburgh residents may be eligible for free or subsidized HVAC upgrades through the state weatherization program.
Check with Allegheny County. County-level programs sometimes offer additional incentives for energy efficiency upgrades.
Utility Company Rebates
Duquesne Light. Check their current rebate programs for energy-efficient heating and cooling equipment. Programs change annually but often include incentives for heat pumps and high-efficiency AC.
Peoples Gas / Columbia Gas. Gas utilities may offer rebates for high-efficiency furnace installations. Contact your gas provider directly for current offers.
How to Maximize Savings
Example: Heat pump installation
- Heat pump cost installed: $6,000
- Federal tax credit (30%): -$1,800
- Utility rebate (varies): -$300 to -$500
- Net cost: $3,700-$3,900
Example: High-efficiency furnace + AC combo
- Furnace + AC installed: $10,000
- Federal credit on furnace ($600) + AC ($600): -$1,200
- Utility rebates: -$200 to -$400
- Net cost: $8,400-$8,600
What You Need to Claim
Keep these for your tax return:
- Manufacturer certification statement (your installer should provide this)
- Invoice showing equipment model numbers and costs
- Proof of installation date
- Receipts for payment
Getting a Quote
If yinz are considering an HVAC upgrade, get connected through KeepYinzCool. Ask your installer about which equipment qualifies for the maximum credits and rebates — the right system choice can save you thousands.