For customers

Here’s what you’ll be able to get and how the process will work when you choose Next HVAC & Appliance Repair:

Federal Tax Credit (Up to $2,000 off ):

The Inflation Reduction Act provides generous federal tax credits for installing high-efficiency home systems. This is separate from HEEHRA and TECH – and can be combined with both!

What you can get: If you install a qualified electric heat pump HVAC system or heat pump water heater, you may be eligible for a 30% tax credit on the cost of the system, up to:

• $2,000 for a heat pump (central or mini-split)
• $2,000 for a heat pump water heater
• Smaller credits (up to $600 each) are also available for upgrades like electric panels, insulation, and smart thermostats.

How to get it: Unlike rebates, this credit is claimed when you file your federal taxes. Here's how we make the process easy:

1. Installation: We make sure the system we install meets all federal efficiency requirements (like SEER2 and ENERGY STAR certification).
2. Documentation: At the end of your project, we’ll give you:
   • A filled-out IRS Form 5695 (residential energy credit form)
   • An AHRI certificate proving your system’s eligibility
   • A detailed receipt with system info and model numbers
3. Tax Filing: When tax season comes, you or your tax preparer can simply use the form we provide. You’ll enter the qualified cost (up to the limit), and the credit will be applied directly to reduce your tax liability. If your tax bill is lower than the credit, the unused portion won’t carry forward, so we’ll help you strategize to get the full benefit.
4. Timing Tip: You claim the credit for the tax year in which the installation was completed. So, if your install finishes in 2025, you’ll include the credit in your 2025 tax return (filed in early 2026).

HEEHRA Rebates (Up to $8,000 off):

HEEHRA stands for High-Efficiency Electric Home Rebate Act – a new federal program that provides huge upfront rebates for electrification projects. In California, this program started rolling out in late 2024 and is ramping up through 2025. What you can get: If you switch from a gas (or old electric) heating/cooling system to an electric heat pump, you can get up to $8,000 off the cost of the new system. The exact amount depends on your household income:

• If your income is below 80% of the Area Median Income (AMI), you qualify for 100% of the rebate amount (max $8k).

• If your income is 80–150% of AMI, you qualify for 50% of the rebate (max $4k).

  (For example, in San Francisco, 80% AMI for a family of 4 is around $X; 150% AMI is around $Y – we will help you determine where you fall.)

  There will also be rebates for other appliances: up to $1,750 for an electric heat pump water heater, $840 for an electric range or heat-pump clothes dryer, etc., which we can assist with if you plan to upgrade those as well.

  How to get it: Unlike a tax credit, this rebate is meant to be applied at the time of purchase as an instant discount. The process for you is straightforward:

1. Check eligibility: We’ll ask you a few questions about your household size and income (and can guide you to an online AMI lookup tool or form). This determines if you get the full rebate or half. All information is confidential and used only to qualify you for the program.

2. Reserve funds: Before installation, we will submit a rebate reservation through the state’s HEEHRA portal (managed by the California Energy Commission via TECH Clean California). This makes sure that your rebate money (e.g., $8,000) is set aside for your project.

3. Installation & discount: We perform the installation of your new heat pump system. On the final invoice, you will see a line item deducting your rebate amount – so you only pay the net cost. For example, if the total cost is $12,000 and you qualify for a $8,000 rebate, you would only need to pay $4,000 (perhaps financed, if you choose).

4. Verification: You’ll need to sign a form confirming the install is complete. In some cases, the program might do a quick verification (like a photo of the installed unit or a random inspection). We handle submitting all this.

5. No waiting for a check: The beauty of HEEHRA is you don’t pay upfront and wait – you get the savings instantly. We as the contractor are reimbursed by the program afterward.

   (One note: HEEHRA rebates cannot be combined with another federal rebate on the same item, but they can be combined with the federal tax credit. So, you could get an $8k discount + $2k tax credit for the same heat pump, significantly reducing your out-of-pocket cost.)

   Timeline: These rebates are first-come, first-served and subject to funding availability. Funds are expected to be available for a few years, but if you’re interested, it’s wise to act sooner rather than later (in case funds run low). We will keep you updated on any deadlines or changes. As of now, single-family homeowners in CA can apply as this program is live.

TECH Clean California Instant Rebates ($1,000–$3,000 off):

What you get: TECH offers a flat rebate (around $1,000) for installing a heat pump HVAC system (central or mini-split) and a similar rebate (~$1,000) for a heat pump water heater, regardless of income. If you are in a designated equity area or certain zip codes, there could be “equity bonuses” – but those details we can check case-by-case. These rebates are smaller than HEEHRA but apply to all customers (not income-limited). How to get it: If applicable to your installation, we will simply apply this rebate as an instant discount on your invoice as well. The process is akin to a coupon: for example, we install a mini-split system, and you see “-$1,000 TECH rebate” in your bill. We then handle getting reimbursed by the program. There’s no extra action needed on your part, except maybe to initial a confirmation that we installed a qualifying unit.

(Note: The TECH rebates can stack with HEEHRA if you are eligible for both. We will coordinate to use TECH funds first (since those might expire sooner) and then apply HEEHRA, to maximize your benefit. Also, TECH often has promotional periods – e.g., sometimes additional $500 bonus for certain models – we will stay on top of these and ensure you get every bonus possible.)

Step-by-Step – Working with Us for Rebates:

1. Initial Consultation: When you contact us for an installation estimate, mention you’re interested in “any rebates or programs.” Our team will gather some basic info (your address, utility provider, house type, income bracket for HEEHRA) to identify all incentives you can get.
2. Customized Proposal: We will provide a proposal that clearly shows the incentives. For example, it might say: “System Cost: $10,000, HEEHRA rebate -$4,000, TECH rebate -$1,000, You Pay: $5,000.” We’ll also include instructions for claiming any post-install credits (like the tax credit).
3. During Installation: We handle any inspections or program requirements. Some programs might require an energy assessment or photos; our installers are trained to take care of this without bothering you.
4. Completion and Forms: At job completion, we’ll ensure you receive a packet (digital or paper) with all necessary documents: rebate confirmation, proof of product efficiency (AHRI certificate), and a filled-out IRS Form 5695 for your tax credit (if you’d like, we can pre-fill it with the info – you or your tax preparer just need to verify and include it in your tax return).
5. Follow-Up: If for any reason a rebate check needs to be mailed to you (in cases where it couldn’t be instant), we will track it. You can always reach out to us if you have questions like “When will my rebate arrive?” or “How do I reflect this on my taxes?”. We’re here to support you even after the project is done. Also, expect that we might ask for a feedback or testimonial – many of these programs appreciate hearing customer success stories, and your positive experience helps us maintain our status in these programs.

We encourage you to take advantage of these opportunities. They are designed to make transitioning to modern, efficient HVAC systems easier and cheaper for homeowners. If you have any questions about whether you qualify or how something works, just ask our team. Next HVAC & Appliance Repair is committed to transparent and customer-friendly handling of all incentive programs. Our goal is that you never miss out on free money that’s on the table for your home improvement project.

By following this guide and working with us, you can improve your home’s comfort and efficiency – and rest assured you’ve obtained every rebate, credit, or discount available. We’ll sweat the details, you enjoy the results!