Upgrading your home’s HVAC system can really pay off by reducing your utility bills and lowering your carbon footprint. That said, installing a new heat pump, furnace or AC is expensive and will cost you at least a few thousand dollars or potentially well over $10,000 if you opt for a higher-end model. The good news is that there are various rebates and tax credits that you may be eligible for when upgrading your HVAC system. This could save you hundreds or thousands on the installation.
ODOE Heat Pump Purchase Program
In June 2025, the Oregon Department of Energy (ODOE) launched the Heat Pump Purchase Program, which allows qualifying residents to receive up to a $2,000 rebate on installing a new heat pump. The money to fund this program comes from a $197 million federal Climate Pollution Reduction grant that the state received in 2024. The rebates are available to owner-occupied homes, new housing construction and rental homes, and a certain portion of the funding is allocated to each category. Overall, the state expects the program to cover the installation of around 12,000 heat pumps, which means the funding is limited and you need to act quickly to try and qualify.
To qualify for the rebate, the heat pump needs to be installed by a program-approved contractor. The contractor then applies for the rebate through ODOE and then subtracts it from the cost of the installation.
Community Heat Pump Development Program
In 2022, the ODOE was allocated $10 million by the state legislature to fund new heat pump installations throughout the state. This led to the creation of the Community Heat Pump Development Program, which allows homeowners to receive a rebate of up to $5,000 for installing a qualifying heat pump. Homeowners who install a heat pump that meets higher energy-efficiency standards can receive a rebate of up to $7,000.
The funding was proportionally allocated across 11 regions and two tribal areas. Unfortunately, most regions are no longer accepting applications due to their allocated funding being fully reserved. However, as of writing, the South Coast region still has funding available and is currently accepting applications. This region includes Roseburg, Coos Bay and the rest of Coos, Curry and Douglas Counties.
Energy Trust of Oregon Rebates
Energy Trust of Oregon is a non-profit organization that works to help residents save on energy costs by upgrading to more efficient appliances. The organization has partnered with local utility companies to provide homeowners rebates ranging from $250 to $4,000 for qualifying residents who install a new heat pump.
The amount you can qualify for depends on a range of factors, including where you live and who your utility provider is. The type of heat pump system you install can also affect how much of a rebate you’re eligible for. For instance, there are higher rebates available in some areas for extended-capacity heat pumps. Some of the rebates are also slightly higher for ductless heat pump systems than they are for standard central heat pumps. As well, you may receive a higher rebate for a central heat pump system if you’re installing it to replace an electric furnace, depending on who your electricity provider is.
The owner-occupied property rebates are usually available for single-family dwellings, townhouses, duplexes, triplexes and fourplexes. Some are also available for manufactured homes. There are separate rebates available for rental properties as well. In case of a rental property, you can also potentially qualify for a discount of up to $1,600 on a new gas furnace.
Energy Trust also offers incentives for homeowners looking to upgrade to a smart thermostat. Eligible homeowners can receive a $100 discount on a qualifying Google Nest, ecoBee, Bryant or Carrier smart thermostat when purchased in-store or online through a participating retailer. If you purchase a qualifying model through a different retailer, you can apply for the discount by email and then receive a check in the mail. However, you have to apply within 60 days of the date of purchase and submit the receipt with your application.
Manufacturer Rebates
Some HVAC manufacturers like Lennox, Daikin and Mitsubishi regularly have rebate programs available as well. These rebates are normally only available when installing a full home comfort system, which means either a heat pump or both a furnace and AC. To qualify, the system must also be installed by a manufacturer-approved contractor.
Federal HVAC Tax Credits
When the US Congress passed the Inflation Reduction Act of 2022, it authorized the IRS to create a new tax credit program to incentivize homeowners to upgrade to more energy-efficient HVAC systems. The program started in 2023, and the credits were initially set to be available until the end of 2032. However, Congress passed a bill abolishing the program earlier this year. While the IRS has yet to release a statement on the status of the tax credits, it is expected that they will only be available until the end of 2025. That means you would need to install a qualifying upgrade by December 31st to be eligible to claim the credit when you file your federal income taxes next year.
The program has two separate categories that cover different types of HVAC units as well as certain other home efficiency upgrades. Gas furnaces and central air conditioners fall into the same category and are each eligible for a credit of up to $600. If you were to install both by the end of the year, you can get a credit of up to $1,200. Central and ductless heat pumps are in the second category and are eligible for up to a $2,000 credit. All of the credits are capped at 30% of the installation and purchase cost of the new unit and are only available for existing homes. The unit also must be installed in your primary residence.
The credit is only available for ENERGY STAR-rated units that meet a certain energy efficiency standard. You also must hire a licensed HVAC contractor to perform the installation. Depending on the type of unit you install, you may be required to include a code on the tax credit form to show that the unit meets the eligibility requirements. You don’t have to submit an invoice showing the total cost you paid when filing your taxes. However, you do need to keep it on hand, as you will likely have to show it if your taxes get audited.
Call Us Today
Addcox Heating Center is the name to trust for expert heating and cooling services in Roseburg and Coos Bay. Our family-owned company has been in business since 1973, and we make it a mission to treat each customer just like one of our own. We’re a Lennox Premier Dealer, Daikin Comfort Pro and a Mitsubishi Diamond Dealer, and our technicians service all other brands. We’re also proud to be an Energy Trust Trade Ally contractor.
Our local team has knowledge of the different rebates and incentives available in the area and can help you determine what you may qualify for and how to apply. If you’re looking to upgrade to a more efficient HVAC system or need to schedule a maintenance or repair call, contact us today.
