Federal Credits Still Available in 2026
The Inflation Reduction Act (IRA) of 2022 fundamentally reshaped how Americans pay for energy-efficient home upgrades, and 2026 marks one of the final years before certain provisions begin phasing down. For Columbus homeowners, this translates into thousands of dollars in direct savings on new HVAC installations. Ohio HVAC tax credits 2026 remain fully stackable with federal incentives, meaning a single heat pump replacement could return up to $3,200 before utility rebates even enter the picture. Sears Heating & Cooling has processed over 1,200 IRA claims since 2022, giving us unmatched expertise in turning complex paperwork into instant discounts.
Heat Pumps and Air Source Systems
Air-source heat pumps dominate the 25C credit category because they provide both heating and cooling from one unit. To qualify for the full $2,000 credit (30% of project cost), the system must meet strict efficiency thresholds set by the Consortium for Energy Efficiency (CEE).
- SEER2 ≥ 15 ensures summer cooling stays cheap even during Columbus’ 90°F+ heat waves.
- HSPF2 ≥ 8.1 guarantees winter performance down to 5°F without supplemental electric strips kicking in.
- AHRI Reference Number printed on every Sears invoice serves as IRS-proof of compliance.
When you elect to transfer the credit at purchase (IRS Form 5695), Ohio HVAC tax credits 2026 appear as an immediate line-item reduction. For a $7,500 Lennox Signature heat pump install, that’s $2,000 off before the crew packs up—often more than the cost of a full duct cleaning add-on.
Central AC and Gas Furnaces
Split-system air conditioners and standalone gas furnaces fall under the same 25C umbrella but with lower caps.
- Central AC: A flat $600 credit applies to any unit rated 16+ SEER2 and 11+ EER2. Carrier’s 24VNA0 Infinity variable-speed model hits 20.5 SEER2, qualifying effortlessly.
- Gas Furnace: $600 for 97%+ AFUE paired with an electronically commutated motor (ECM). The ECM alone slashes blower electricity by 60% versus old PSC motors.
Because the credit is per “energy property,” installing both an AC and furnace in the same tax year yields $1,200 total. Ohio HVAC tax credits 2026 have no lifetime limit under current law, so replacing your neighbor’s 20-year-old builder-grade system next year starts the clock fresh.
Ohio Utility Rebates and Claim Process
While federal credits reduce your IRS bill (or invoice), AEP Ohio and Columbia Gas of Ohio deliver instant cash rebates that require zero tax filing. These programs refresh annually, and 2026 budgets are already locked in at record levels thanks to grid-modernization settlements.
Eligibility and Efficiency Minimums
Utility rebates demand the same ENERGY STAR® Most Efficient designation as federal credits, but they add a local twist: equipment must be installed by a program-registered contractor. Sears holds Trade Ally status with both utilities, meaning every quote we write is pre-approved for rebate submission.
- AEP Ohio: $500 base for heat pumps, $300 for 16+ SEER2 AC, $250 for 97% furnaces.
- Columbia Gas: $750 for 97% modulating furnaces with smart thermostat bundle.
- Income-qualified bonus: Households under 150% of federal poverty level receive an extra $800 per system through AEP’s Home Energy Assistance Program.
Ohio HVAC tax credits 2026 stack on top—install a $12,000 heat pump and walk away paying roughly $8,000 after all incentives.
Step-by-Step Paperwork with Sears
We built a proprietary rebate portal that eliminates homeowner headaches. Here’s exactly what happens:
- Quote Stage: Our comfort advisor runs your address through AEP/Columbia Gas eligibility checkers and displays net cost after every incentive.
- Install Day: Technicians photograph serial number plates, upload AHRI certificates, and collect your e-signature on the IRS transfer form.
- Same-Day Discount: Ohio HVAC tax credits 2026 are deducted from the final invoice; utility rebates are submitted electronically within 24 hours.
- Follow-Up: You receive a PDF packet with AHRI certs, Form 5695 copy, and rebate tracking numbers. Utility checks mail 6–8 weeks later; federal credits are audit-ready.
Common Misconceptions Debunked
- “I need to wait until I file taxes” – No. The IRA allows credit transfer at sale.
- “Rebates count as income” – IRS clarified in 2024 that transferred 25C credits are non-taxable.
- “Only new construction qualifies” – Replacement in existing homes is the primary use case.
Real Columbus Case Studies
- Dublin Split-Level (2025): Replaced 1998 Trane with Carrier Infinity heat pump. Gross cost $11,800 → $2,000 federal + $500 AEP + $750 Columbia = $8,550 net. Annual savings $1,100 on utilities.
- German Village Rowhouse: 97% Lennox furnace + 18 SEER2 AC. Total incentives $1,850; ROI under 4 years with Ohio’s moderate winters.
Future-Proofing Beyond 2026
The IRA sunsets enhanced credits after 2032, but Ohio’s Public Utilities Commission has signaled intent to maintain utility rebates through 2035 under the state’s Clean Energy Portfolio Standard. Locking in a 20 SEER2 system now guarantees eligibility even if federal caps drop to $1,200 in 2027.
Pro Tips for Maximum Savings
- Bundle smart thermostats (Ecobee Premium qualifies for separate $150 AEP rebate).
- Schedule installs January–March when labor discounts hit 15%.
- Finance through Sears at 0% for 18 months—interest-free cash flow while rebates arrive.
