call us today: 410.766.4989
call us today: 410.766.4989

Understanding Maryland’s HVAC Tax Credits and Rebates

January 22, 2025

As a homeowner in Maryland, you might be eligible for various tax credits and rebates when upgrading your HVAC system. These incentives can significantly reduce the cost of purchasing and installing energy-efficient heating and cooling systems. 

Whether you're considering a heat pump, central air conditioning, or a furnace upgrade, understanding the available programs can help you make an informed decision and save money.

If you’re looking to purchase a new HVAC system and want to see if you qualify for rebates and credits, then call us and we can help you find a qualifying unit. If you’re simply looking for information at this time, we provide all the information you need to know below. 

 

Why Maryland Offers HVAC Tax Credits and Rebates

Maryland is committed to promoting energy efficiency and reducing greenhouse gas emissions. The state encourages homeowners to invest in energy-efficient appliances that reduce energy consumption and improve indoor comfort by offering tax credits and rebates. These incentives benefit the environment and your wallet, lowering upfront costs and long-term energy bills.

 

Types of HVAC Tax Credits and Rebates in Maryland

Understanding the different types of tax credits and rebates available can help you determine which programs are best suited for your HVAC upgrade. 

Maryland offers a range of incentives designed to make energy-efficient upgrades more accessible and affordable. 

Here’s an overview of the most common programs:

  1. Federal Tax Credits for Energy-Efficient Systems - The federal government offers tax credits for installing qualifying energy-efficient HVAC systems. These credits are typically available for: Air source heat pumps, Central air conditioners, Gas furnaces. Check the Energy Star Federal Tax Credit Guide for more details. 
  2. Maryland Energy Administration (MEA) Residential Clean Energy Rebate Program - This program provides rebates for homeowners who install energy-efficient systems like geothermal heat pumps and ductless mini-split systems. • Rebates vary based on the type and size of the system. Learn more on the MEA website.  
  3. Utility Company Rebates - Many utility companies in Maryland offer rebates for energy-efficient HVAC systems. For example: BGE’s Smart Energy Savers Program; Pepco’s Energy Savings for Business and Home. Visit your utility provider’s website for specific rebate details.  
  4. Local Government Incentives - Some counties and municipalities in Maryland offer additional rebates and tax credits for energy-efficient home upgrades. Contact your local government office or visit their website to explore what’s available in your area. 
  5. Carrier Rebates - Carrier, a leading HVAC brand, frequently offers rebates on qualifying products. For example, their Infinity® Series air conditioners and Greenspeed® Intelligence heat pumps may be eligible for rebates. Check the Carrier Rebates Page for the latest offers.  

 

Examples of Products that Qualify for Rebates

Upgrading your HVAC system can be a big decision, but choosing energy-efficient products that qualify for rebates makes it much more rewarding. Not only do these products enhance your home's comfort, but they also reduce energy consumption and save you money in the long run. 

Let’s take a look at some examples of systems that could help you take advantage of these savings.

  • Air Source Heat Pumps: Energy-efficient models with high SEER ratings, such as Carrier’s Infinity® Series. 
  • Ductless Mini-Split Systems: Ideal for homes without ductwork, offering zoned heating and cooling. 
  • Geothermal Heat Pumps: Qualify for both federal tax credits and state rebates through the MEA program. 
  • Energy Star Certified Furnaces and Air Conditioners: Systems meeting specific efficiency standards.

Making the switch to these energy-efficient systems is a win-win. You’ll enjoy improved performance, lower utility bills, and the peace of mind that comes with knowing you’re contributing to a greener environment—all while taking advantage of valuable rebates and tax credits.

 

How Tax Credits and Rebates Work

Understanding tax credits and rebates can feel like deciphering a secret code. Many homeowners miss out on significant savings simply because they’re unsure how these programs work. 

But here’s the good news: it’s simpler than you think. By breaking it down step by step, you can take full advantage of these opportunities and make your HVAC investment even more worthwhile.

If you’re new to tax credits and rebates, here’s what you need to know:

  • Tax Credits: These directly reduce the amount of income tax you owe. For example, if you install an energy-efficient system and qualify for a $1,000 federal tax credit, your tax liability is reduced by $1,000.
  • Rebates: These are typically cash incentives provided by utility companies, manufacturers, or government programs. You may receive a rebate as a check or bill credit after submitting proof of purchase and installation.

Key Steps:

  1. Purchase and install a qualifying HVAC system.
  2. Submit necessary documentation, such as receipts and system certifications. 
  3. Claim tax credits on your federal or state tax return or receive rebates directly from the program or manufacturer.

How to Qualify for HVAC Tax Credits and Rebates

Qualifying for these programs often involves meeting specific requirements. Knowing what’s needed ahead of time ensures you don’t miss out on valuable incentives.

  • Energy Efficiency Standards: Systems must meet minimum SEER (Seasonal Energy Efficiency Ratio) or HSPF (Heating Seasonal Performance Factor) ratings. 
  • Proper Installation: Your system must be installed by a licensed HVAC contractor. 
  • Documentation: Keep all receipts, manufacturer’s certifications, and installation records. Some programs require submitting these documents during the application process.

 

Why Partner with MaxAir for Your HVAC Upgrades

At MaxAir, we’re here to simplify the process of upgrading your HVAC system. Our team stays updated on the latest tax credits and rebates available in Maryland, ensuring you don’t miss out on savings. We’ll guide you through selecting energy-efficient systems, provide professional installation, and assist with the necessary documentation to claim your benefits.

Final Thoughts

Taking advantage of Maryland’s HVAC tax credits and rebates is a smart way to invest in your home’s comfort and energy efficiency. These programs make it easier to afford high-quality systems that reduce energy usage and environmental impact. 

Contact MaxAir today to learn more about how we can help you navigate these incentives and achieve a more comfortable, energy-efficient home.

When your HVAC system is making frightening noises, its time to call the pros.