01/22/2026
Did you know you have options for HVAC replacement funding and grants?
Here's a tidbit of information:
Homeowners can find grants and rebates for HVAC replacement through federal programs like the Weatherization Assistance Program (WAP) and USDA Rural Development, plus state-run Energy Efficiency and Conservation Block Grant (EECBG) funds (often called HEEHRA), which help low-income households with energy efficiency upgrades, including system replacements, alongside potential tax credits. Key options include: LIHEAP for energy bills/repairs, USDA's Section 504 grants for seniors, and new state-administered HEEHRA rebates for heat pumps.
Federal & State Programs
Weatherization Assistance Program (WAP): A federally funded program (via the DOE) that provides free weatherization and HVAC upgrades to low-income households to reduce energy costs, often covering system repairs or replacements.
Low Income Home Energy Assistance Program (LIHEAP): Offers energy bill assistance, crisis help, and funds for weatherization and minor energy-related home repairs, including heating/cooling system fixes.
USDA Rural Development (RD): Offers grants (up to $10k) and loans for very-low-income, elderly homeowners (62+) in rural areas to remove health/safety hazards, including HVAC issues.
Home Energy Efficiency Rebates (HEEHRA): A newer, state-administered program (part of the Inflation Reduction Act) offering rebates for electric heat pumps (up to $8k) and other upgrades, administered by states. Check your state's energy office.
Tax Credits (Separate from Grants)
Energy Efficient Home Improvement Credit: A federal tax credit for 30% of costs (up to $2,000 for heat pumps) for improvements made by Dec 31, 2025, claimed via IRS Form 5695.
How to Find Assistance
Check Your State: Contact your state's energy office or housing authority to find local WAP, LIHEAP, and HEEHRA program details.
USDA Eligibility: Use the USDA eligibility site to see if your rural address qualifies for Section 504.
Look for Participating Contractors: HEEHRA rebates are often handled at the point of sale by approved contractors.