Leo Kob Co. Mechanical Contractors

Rebates and Tax Credits

When the time comes for new home systems, there’s typically a choice between lower-cost, lower-efficiency options and their higher-cost, higher-efficiency alternatives. To address this, local utility companies and the federal government have introduced a suite of rebates and tax credits to significantly offset those higher costs. At Leo Kob Co., we’re happy to help you navigate your options without the usual pressure that comes from commission-based sales models.

Utility Rebate Programs

The Pennsylvania Public Utility Commission (PUC) is responsible for implementing Act 129, Pennsylvania’s flagship energy efficiency law passed in 2008, which guides consumers and electric utilities toward achieving reduced energy consumption and peak electric demand. A sampling of rebates currently offered by local utility companies is included below. These rebates are able to be combined with tax credits if the equipment satisfies the criteria for both initiatives.

Available Rebates

$100 Smart Thermostat Rebate

$300 Central Air Conditioning Rebate

$400 Ductless Mini-Split Heat Pump Rebate

$400 Heat Pump Water Heater Rebate

$450 Air Source Heat Pump Rebate

Eligibility: This program is currently available to existing and new PPL electric customers in Pennsylvania with a residential rate class.

Available Rebates

$50 Smart Thermostat Rebate

$250 Central Air Conditioning Rebate

$200 Ductless Mini-Split Heat Pump Rebate

$500 Heat Pump Water Heater Rebate

$500 Air Source Heat Pump Rebate

Eligibility: This program is currently available to existing and new Met-Ed electric customers in Pennsylvania with a residential rate class.

Available Rebates

$50 Smart Thermostat Rebate

$400 Tankless Water Heater Rebate

$500 Furnace Rebate

$1,200 Boiler Rebate

$1,500 Combi-Boiler Rebate

Eligibility: This program is currently available to existing and new UGI gas customers in Pennsylvania with a residential rate class.

Federal Tax Credits

The Inflation Reduction Act of 2022

The Inflation Reduction Act of 2022 offers a boost to Americans aiming to enhance their homes’ energy efficiency. Through federal tax credits and deductions, it’s easier to lower energy costs and consumption.

Until 2032, homeowners can deduct up to $3,200 annually from their federal income taxes for energy-efficient upgrades. This includes a 30% credit on costs up to $2,000 for heat pump equipment installations and an additional credit up to $1,200 for other eligible improvements, all within the same tax year.

The U.S. Internal Revenue Service (IRS) oversees these credits. Homeowners can claim them on their federal tax returns for the year the upgrades were completed, using IRS Form 5695 (refer to its instructions for guidance).

This opportunity is available for improvements made to your primary residence. It does not extend to new constructions or properties owned by landlords or other non-resident property owners.For further details, click here

How it works

The overall total limit for an efficiency tax credit in one year is $3,200.  This breaks down to a total limit of $1,200 for any combination of home envelope improvements (windows/doors/skylights, insulation, electrical) plus furnaces, boilers and central air conditioners.  Any combination of heat pumps, heat pump water heaters and biomass stoves/boilers are subject to an annual total limit of $2,000.

Cost Benefit Analysis

Below is an illustrative analysis comparing the cost of installing a 50 gallon heat pump water heater with a standard electric resistance water heater after accounting for rebates, tax credits, and energy savings.

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