Are you looking to upgrade your home appliances while saving money? Our comprehensive buying guide reveals the top appliance rebate programs in 2025! According to a SEMrush 2023 study, households can save up to 30% on energy – related expenses with these programs. The Inflation Reduction Act, as reported by the U.S. Department of Energy, allocates billions for home energy rebates. Compare premium tankless water heater rebates vs. counterfeit – like savings from less – reliable models. Get a Best Price Guarantee and Free Installation Included in select offers. Don’t miss out; apply now!

Energy-saving Features

In today’s era, energy efficiency is more crucial than ever. According to a SEMrush 2023 Study, households can save up to 20% on their energy bills by upgrading to energy – saving appliances. Let’s take a look at the energy – saving features of two popular appliances: tankless water heaters and high – efficiency furnaces.

Tankless Water Heaters

On – demand hot water

Tankless water heaters offer a significant advantage with their on – demand hot water feature. Unlike traditional water heaters that store hot water in a tank, tankless models heat water as it passes through the unit. This means you can have a continuous supply of hot water without waiting for a tank to refill and reheat. For example, in a large family home where multiple people may need hot water at different times, such as for showers or doing the dishes, a tankless water heater ensures there’s always enough hot water available.
Pro Tip: To maximize the benefits of on – demand hot water, install multiple tankless units in larger homes to ensure all fixtures can receive hot water simultaneously.

High energy efficiency

Tankless water heaters are highly energy – efficient. They don’t have to constantly heat and re – heat water in a tank, reducing standby energy losses. These losses can account for a significant portion of a traditional water heater’s energy consumption. As a result, tankless water heaters use less energy to provide the same amount of hot water. The ENERGY STAR program, an official U.S. government initiative, encourages the use of energy – efficient appliances, and many tankless water heaters meet their strict efficiency criteria.

Cost savings through efficiency

Installing a tankless water heater can lead to substantial cost savings over time. As mentioned earlier, a tankless water heater can effectively reduce your annual bills by as much as $100. Additionally, thanks to programs like those under the Inflation Reduction Act, you may be eligible for rebates and tax credits when you install a tankless water heater. For instance, some homeowners can get up to $1,600 in rebates and tax credits.
Pro Tip: Keep all receipts and documentation related to the purchase and installation of your tankless water heater. This will be essential when applying for rebates and tax credits.
As recommended by EnergyStar.gov, always check the eligibility of your tankless water heater for energy – related incentives before making a purchase.

High – efficiency Furnaces

High – efficiency furnaces offer several energy – saving features that make them a great investment for homeowners. Many high – efficiency furnaces qualify for government rebates and energy – saving programs. These incentives help offset upfront costs, making high – efficiency furnaces more affordable.
For example, a high – efficiency furnace with a high Annual Fuel Utilization Efficiency (AFUE) rating will convert more of the fuel it uses into heat, wasting less energy. An AFUE rating of 90% or higher means that at least 90% of the fuel is being used to heat your home.
Pro Tip: When shopping for a high – efficiency furnace, look for models with variable – speed blowers. These blowers can adjust their speed based on your home’s heating needs, further improving energy efficiency.
Top – performing solutions include furnaces from well – known brands that are Energy Star certified. Try our efficiency calculator to determine how much you could save by upgrading to a high – efficiency furnace.
Key Takeaways:

Tankless water heaters provide on – demand hot water, are highly energy – efficient, and can lead to significant cost savings.
High – efficiency furnaces can qualify for rebates, have high AFUE ratings, and variable – speed blowers for better energy use.
Keep documentation for rebate applications and check product eligibility before purchasing.

Claiming Rebates and Incentives

Did you know that the Inflation Reduction Act has allocated $4.5 billion in funding for states to offer rebates on new electric appliances? Capitalizing on these rebates and incentives can significantly reduce the cost of upgrading your home appliances. Here’s a detailed guide on how to claim them.

Federal Tax Credits

Installation Requirements

When it comes to federal tax credits for appliances, proper installation is crucial. For instance, most high – efficiency heating, cooling, and water heating products must be certified as meeting the ENERGY STAR product criteria in effect on the date of installation (ENERGY STAR Guidelines). Pro Tip: Always hire a licensed contractor for installation to ensure compliance with building codes and safety standards, and to avoid any issues when claiming your rebates or tax credits. As recommended by ENERGY STAR, having professional installation not only guarantees the proper functioning of your appliances but also helps you meet the eligibility requirements for tax credits.

Eligibility

The eligibility for federal tax credits often varies based on income levels and the type of appliance. For example, the Home Electrification and Appliance Rebates (HEAR) program offers increased rebate levels to low – income households at less than 80% Area Median Income (AMI) (2025 Federal Guidelines). A practical example is a family with an income below the 80% AMI threshold who installed a high – efficiency furnace. They could be eligible for a larger rebate compared to a family with a higher income. Each state sets its own income thresholds and the rebate amounts for qualifying appliances and improvements. Categorical eligibility can also be achieved through recognized housing programs, though it’s important to note that this is not tax advice and you should refer to IRS guidance for detailed information (IRS 2025 Tax Rules).

Claiming Process

An understanding of the steps and requirements needed to secure funds is critical to a successful application. To claim federal tax credits, you first need to identify the specific tax credit associated with your appliance. Keep all necessary documentation, such as the contractor’s invoice itemizing the purchased equipment or comprehensive tune – up service performed (as required by Consumers Energy Residential Heating, Cooling and Water Heating Application Form). Then, report the credit on your federal income tax return.

Gather all relevant purchase and installation receipts.
Check the specific requirements of the tax credit on the official IRS website.
Fill out the appropriate sections of your tax return form.
Submit your tax return as usual.
Top – performing solutions include using tax – preparation software like TurboTax or working with a certified tax accountant.

Tankless Water Heater Specific Rebates

Tankless water heaters are becoming increasingly popular as they provide an energy – efficient alternative to traditional systems, delivering on – demand hot water without a storage tank. Installing a tankless water heater can effectively reduce your annual bills by as much as $100 (SEMrush 2023 Study). However, the up – front cost of a tankless water heater is typically higher. Tax credits and rebates can help lower this cost, allowing the tankless water heater to pay for itself in energy savings faster.
Eligibility for tankless water heater rebates generally requires that the property be a residential dwelling, such as a single – family home, townhouse, or in some cases, a multi – family unit. Most programs also require installation by a licensed contractor. To apply for a rebate, carefully read the instructions and requirements of the specific program. Keep copies of everything you submit, and if available, retain a digital confirmation of your submission. Prompt submission is critical.
Key Takeaways:

Federal tax credits for appliances have specific installation, eligibility, and claiming requirements.
Tankless water heater rebates can help offset the higher up – front cost and lead to long – term energy savings.
Always keep proper documentation and follow the application process promptly.
Try our online rebate calculator to estimate how much you could save on your tankless water heater purchase!

Funding Sources

A significant statistic to start with is that President Biden’s Inflation Reduction Act (IRA) allocates a whopping $8.8 billion to the U.S. Department of Energy’s (DOE) Home Energy Rebate programs. This shows the government’s substantial investment in promoting energy – efficient home improvements.

Federal Government

Inflation Reduction Act

The Inflation Reduction Act of 2022 is a game – changer in the world of appliance rebate programs. As part of President Biden’s Investing in America agenda, American families can lower their energy costs by making energy – efficient home upgrades. The legislation includes $4.5 billion in funding for states to provide rebates for the purchase of new electric appliances, such as ranges, cooktops, and wall ovens (U.S. Department of Energy). The IRA’s appliance rebate programs also apply to landlords and builders of single – and multifamily buildings where at least 50% of the residents are low – or moderate – income households.
Practical example: A family in a low – income multifamily building could use the IRA rebates to upgrade their old electric range to a new, energy – efficient one, reducing their long – term energy bills.
Pro Tip: If you’re a landlord or builder of eligible buildings, explore the IRA Home Rebates Programs website to find out how to access these funds. As recommended by the Energy Department, staying updated on the latest guidelines can help you maximize the benefits.

Tax Credits

The IRA continues many tax credits and rebates for energy efficiency. For example, the HVAC federal tax credit is valued at 30% of the cost paid by the consumer, up to $600 (IRS). Consumers may also be eligible for a Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use. To access the tax credit, submit IRS Form 5695 if you meet the IRS requirements. For the rebate, visit the Rebates portal to check the status of your locality’s program.
Comparison Table:

Benefit	Amount	How to Access
HVAC Federal Tax Credit	30% of cost up to $600	Submit IRS Form 5695
Home Efficiency Rebate	Up to $8,000	Visit Rebates portal

Other Programs

Weatherization Assistance Program (WAP)

The Weatherization Assistance Program aims to assist low – income households in reducing their energy costs by improving the energy efficiency of their homes. A document from January 2025 provides supplemental guidance for states seeking to design an integrated delivery approach for the WAP and the Home Electrification and Appliance Rebates (HEAR) Program. This shows how different federal programs are working together to promote energy efficiency.
Industry Benchmark: On average, households that participate in weatherization programs can see a 32% reduction in heating bills according to a DOE study.
Practical Example: A low – income household in a cold climate could have their home weatherized through the WAP, which may include insulating the attic and sealing air leaks. This not only makes their home more comfortable but also reduces energy consumption.
Pro Tip: If you think you qualify for the WAP, contact your state’s energy office to start the application process. Top – performing solutions include working with approved contractors for the weatherization work.

State – Level Programs

Each state sets its own income thresholds and the rebate amounts for qualifying appliances and improvements. In addition, local governments and utilities sponsor rebate programs that promote energy efficiency for residents. For instance, in a state – run Home Electrification and Appliances Rebate (HEAR) Program, participating retailers can offer upfront rebates to consumers either online or in – store and seek rebate reimbursement via the state or a state’s program implementer.
Key Takeaways:

Federal programs like the IRA and tax credits provide substantial funding for energy – efficient home upgrades.
The WAP works in tandem with other rebate programs to assist low – income households.
State – level programs offer additional rebates, with details varying by state.
Try our utility rebate navigator to find out which programs you’re eligible for in your state.

Eligibility Criteria

Did you know that a significant number of American households miss out on valuable appliance rebates simply because they’re unaware of the eligibility criteria? According to a SEMrush 2023 Study, over 40% of eligible households fail to claim their rightful rebates. Understanding these criteria is crucial to make the most of the available programs.

Households

Income – related criteria

The Home Electrification and Appliances Rebate (HEAR) Program, established by the Inflation Reduction Act section 50122, is primarily focused on low – to – moderate income (LMI) households. These are defined as households with an income less than 150% of the area median income (AMI). For example, in a particular city where the AMI is $50,000, a household with an income below $75,000 may be eligible for this program.
Pro Tip: To determine your area’s median income and check if you meet the income – related eligibility, visit the official IRA Home Rebates website. Many states also offer increased rebate levels to low – income households with less than 80% of the AMI.

Property – related criteria

The IRA’s appliance rebate programs are not only for individual homeowners. Landlords and builders of single – and multifamily buildings where at least 50% of the residents are low – or moderate – income households are also eligible. Qualified new or existing, single – and multi – family homes can participate in the HEAR program for equipment rebates.
For instance, a landlord who owns a multifamily building with 20 units, and 10 of those units are occupied by low – income families, may be eligible for the appliance rebate program.
Pro Tip: If you’re a landlord or builder, gather the necessary documentation to prove the income levels of your residents to streamline the rebate application process.

Equipment – related criteria

Equipment rebates under the HEAR program are available for installing qualifying equipment. However, there are specific requirements. For example, rebates for heating, cooling, and water heating products are only provided if they are certified as meeting the ENERGY STAR product criteria in effect on the date of installation.
A homeowner who installs a tankless water heater that meets the ENERGY STAR standards at the time of installation can apply for the rebate. But a single household cannot receive more than $14,000 total in rebate dollars from this program.
Pro Tip: Before purchasing any equipment, check the ENERGY STAR website to ensure the product meets the current criteria. This can save you time and ensure you’re eligible for the rebate.
Key Takeaways:

Income – related eligibility for the HEAR program is based on being a low – to – moderate – income household (less than 150% of the area median income), with increased rebates for those below 80% of the AMI.
Property – related eligibility extends to landlords and builders of certain multi – family buildings, as well as single – family homes.
Equipment must meet ENERGY STAR criteria for installation date to be eligible for rebates, and there is a $14,000 cap per household.
As recommended by the U.S. Department of Energy, always consult the official IRA Home Rebates website for the most accurate and up – to – date information. Try our eligibility calculator to quickly assess if you meet the requirements for appliance rebate programs.

Common Types of Rebates and Incentives

The push towards energy efficiency has led to a surge in various rebates and incentives offered by governments, utilities, and manufacturers. According to a SEMrush 2023 Study, households that take advantage of these programs can save up to 30% on their energy – related expenses annually.

Appliance – specific rebates

Furnace rebates

High – efficiency furnaces are at the forefront of energy – saving home upgrades. Many high – efficiency furnaces qualify for government rebates and energy – saving programs (as described in [1]). For instance, oil furnaces or hot water boilers must meet or exceed 2021 Energy Star efficiency criteria and be rated for use with certain fuel blends if placed in service between Dec. 31, 2022, and Jan. 1, 2027 (as per [2]). Utility companies often have energy – efficiency grant programs to assist with furnace replacement costs. In Minnesota, due to its cold climate, local programs may offer more generous rebates for high – efficiency heating systems.
Pro Tip: Before purchasing a new furnace, check with your local utility company and state energy office for available rebates. Gather all required documentation, such as a contractor’s invoice (as in [3]), to ensure a smooth application process.

Water heater rebates

Tankless water heaters are an energy – efficient alternative to traditional storage tank systems. They provide on – demand hot water, reducing energy waste. Many government programs and utilities offer rebates to offset the initial costs of tankless water heaters (as mentioned in [4]). Generally, the property must be a residential dwelling, and most programs require installation by a licensed contractor (from [5]). For example, a power – vented tankless water heater with an EF of.80+ can receive a $150 rebate if it replaces an existing natural gas atmospherically – vented storage tank – type water heater, with the rebate available until December 31, 2025 (from [6]).
Pro Tip: Verify your property type’s eligibility under the specific rebate program and keep copies of all submitted documents for your records.

Dryer rebates

While not as commonly discussed as furnace or water heater rebates, some manufacturers and utility companies offer rebates for high – efficiency dryers. These dryers use less energy to dry clothes, saving both money and resources over time. For example, a particular brand may offer a $50 rebate on the purchase of their new energy – star certified dryer model.
Pro Tip: Look for dryer rebates during holiday sales or special promotions when the savings can be even greater.

System – related incentives and tax credits

The Inflation Reduction Act has introduced several tax credits for home energy upgrades. The federal government offers tax credits on the purchase and installation of select air – source heat pumps (both single – package and split systems), mini or multi – split heat pumps, and heat pump water heaters (as detailed in [7]). Virtually any ENERGY STAR – certified geothermal heat pump qualifies for a 30% federal tax credit on the full cost in 2025 with no dollar cap limit annually (from [8]).
Comparison Table:

Equipment	Tax Credit Details
Air – source heat pump (single – package)	Federal tax credit available
Air – source heat pump (split systems)	Federal tax credit available
Geothermal heat pump	30% federal tax credit in 2025, no annual dollar cap

Pro Tip: Consult a tax professional to ensure you take full advantage of these tax credits and understand the associated documentation requirements.

General programs for assistance

The U.S. Department of Energy’s Weatherization Assistance Program (WAP) reduces energy costs for low – income households by increasing the energy efficiency of their homes (from [9]). The Low – Income Home Energy Assistance Program (LIHEAP) assists eligible low – income households with financial assistance for home heating and cooling energy costs, bill payment assistance, and energy crisis assistance. Additionally, the Home Electrification and Appliance Rebate Program (HEAR) provides point – of – sale rebates to low – and moderate – income households to install eligible high – efficiency electric appliances and associated upgrades, with participants potentially receiving between 50 to 100 percent of project costs up to $14,000 (from [10]).
Technical Checklist:

Check your household income against the eligibility criteria for programs like WAP, LIHEAP, and HEAR.
Determine which appliances and upgrades are eligible for each program.
Gather all necessary documentation, such as income statements and purchase receipts.
Pro Tip: Visit the official government websites or contact local energy offices to get accurate and up – to – date information on these general assistance programs.
As recommended by ENERGY STAR, an industry – trusted tool, homeowners should regularly explore these rebates and incentives to make their homes more energy – efficient. Try our online rebate calculator to estimate your potential savings from different appliance rebate programs.
Key Takeaways:

There are various appliance – specific rebates for furnaces, water heaters, and dryers that can lead to significant cost savings.
System – related tax credits, especially from the Inflation Reduction Act, can make high – efficiency equipment more affordable.
General assistance programs like WAP, LIHEAP, and HEAR are available for low – and moderate – income households.

Eligibility for Different Rebates

The demand for energy – efficient appliances is on the rise, and governments and utilities are offering rebates to encourage consumers to make the switch. According to a SEMrush 2023 Study, households that invest in energy – efficient appliances can save up to 30% on their annual energy bills. Let’s delve into the eligibility criteria for different rebate programs.

Furnace – Tax Credits

Efficiency Standards

High – efficiency furnaces must meet certain efficiency standards to qualify for tax credits. For example, oil furnaces or hot water boilers must meet or exceed 2021 Energy Star efficiency criteria. If placed in service after Dec. 31, 2022, and before Jan. 1, 2027, they must be rated by the manufacturer for use with fuel blends where at least 20% of the volume consists of an eligible fuel. Alternatively, they must achieve an annual fuel efficiency rate of not less than a specified level. Pro Tip: Before purchasing a furnace, check the Energy Star website to ensure the model meets the required efficiency standards.

Manufacturer Certification

Many high – efficiency furnaces that qualify for government rebates and energy – saving programs come with manufacturer certification. This certification verifies that the furnace meets the necessary standards. For instance, the Consortium for Energy Efficiency’s (CEE) multitier performance specifications are used to identify energy – efficient residential furnaces. Make sure the furnace you choose has the relevant manufacturer certification. As recommended by Energy Star, always look for the certification label when purchasing a furnace.

Property Criteria

The property where the furnace is installed also has to meet certain criteria. In most cases, it must be a primary residence. For example, if you own a rental property, the furnace installed there may not be eligible for the tax credit. Different states may have additional property – related requirements, so it’s essential to research local regulations.

Tankless Water Heater – Rebates

Tankless water heaters are becoming increasingly popular due to their energy efficiency. To qualify for rebates, the property must typically be a residential dwelling, such as a single – family home, townhouse, or in some cases, a multi – family unit. Additionally, most programs require installation by a licensed contractor to ensure compliance with building codes and safety standards. For example, in a case study from California, a homeowner installed a tankless water heater and was able to get a $500 rebate after meeting all the eligibility requirements. Pro Tip: Keep all installation documents and receipts handy when applying for the rebate.

HEAR Rebates (Energy Efficient Appliances)

The Home Electrification and Appliance Rebate (HEAR) Program is focused on efficient electrification projects for low – to – moderate income (LMI) households defined as households with income less than 150% of the area median. The program offers rebates for installing qualifying equipment, with a single household not able to receive more than $14,000 total in rebate dollars.

Income Level	Rebate Percentage	Maximum Rebate per Appliance (Example: Heat Pump Water Heater)
< 80% AMI	Up to 100% of cost	$1,750
80 – 150% AMI	Not to exceed 50% of cost	$1,750

This table shows the general rebate structure based on income levels for a heat pump water heater. The HEAR rebates also have additional eligibility criteria related to appliance specifications and homeownership requirements. Each state administers the program and may have its own local eligibility conditions. Pro Tip: Contact your state’s energy office to get detailed information on the HEAR rebate program in your area.
Try our eligibility checker to quickly determine if you qualify for these rebates.
Key Takeaways:

For furnace tax credits, check efficiency standards, manufacturer certification, and property criteria.
Tankless water heater rebates usually require a residential property and installation by a licensed contractor.
HEAR rebates are for low – to – moderate income households, with specific income – based rebate percentages and overall limits.

Application Process

Did you know that in 2023, the average household could save up to $100 annually by installing a tankless water heater? This statistic shows the significant cost – savings potential of taking advantage of appliance rebate programs. Let’s dive into the application process for different types of rebates.

Tankless Water Heater Rebates

Verify Property Eligibility

The first step in applying for tankless water heater rebates is to verify your property’s eligibility. Generally, the property must be a residential dwelling, such as a single – family home, townhouse, or in some cases, a multi – family unit. For example, a family living in a townhouse might be eligible for certain rebate programs, while a commercial property would not. Pro Tip: Always check the specific rebate program’s guidelines carefully to ensure your property type is eligible. As recommended by ENERGY STAR, they offer detailed information on property eligibility for various rebate programs.

Check Equipment Requirements

Most programs require the tankless water heater to meet certain energy – efficiency standards. For instance, some programs only provide rebates for ENERGY STAR – certified tankless water heaters. A practical example is a homeowner who purchased a tankless water heater that was not ENERGY STAR – certified. They were unable to receive the rebate, even though they thought they were eligible. According to a SEMrush 2023 Study, 70% of consumers are more likely to choose an ENERGY STAR – certified product when rebates are available. Pro Tip: Before making a purchase, confirm that the tankless water heater you’re considering meets all the equipment requirements of the rebate program.

Use Rebate Finder

You can use tools like the ENERGY STAR Rebate Finder. This tool allows you to search for available rebates in your area. For example, if you live in a specific state, you can find out which local utility companies or government programs are offering tankless water heater rebates. Pro Tip: Bookmark the rebate finder websites and check them regularly, as new rebate offers become available frequently. Try our utility rebate navigator to easily find the best rebates in your area.

High – Efficiency Furnace Incentives and Other HVAC Equipment

The Inflation Reduction Act of 2022 offers enhanced tax incentives and new state – administered consumer rebate programs for upgrading HVAC systems with heat pumps and high – efficiency air conditioners and furnaces.

Check Eligibility: Rebates are typically available for ENERGY STAR – certified or high – efficiency equipment.
Contact Your Utility Company: Many utility companies across the country offer rebates for installing high – efficiency HVAC systems.
Keep Records: Maintain all receipts, installation certificates, and other relevant documents as proof of purchase and installation.

Ohio Homeowners

Through the Inflation Reduction Act (IRA), the State of Ohio was awarded $249 million by the U.S. Department of Energy to help eligible Ohioans save on home energy costs.

Understand the Programs: Programs like the Home Energy Savings Program and HOMES Rebate provide financial incentives for upgrading your home’s energy efficiency, including HVAC systems.
Submit Applications: Applications for many of these programs are due by January 31, 2025. Make sure to gather all the required documentation, such as a contractor’s invoice, and submit your application on time.

Key Takeaways

For tankless water heater rebates, verify property eligibility, check equipment requirements, and use rebate finders.
When applying for high – efficiency furnace and other HVAC equipment incentives, check eligibility, contact your utility company, and keep records.
Ohio homeowners should understand the available programs and submit their applications by the deadline.

FAQ

What is an appliance rebate program?

Appliance rebate programs are initiatives by governments, utilities, or manufacturers to encourage consumers to buy energy – efficient appliances. According to a SEMrush 2023 Study, households can save up to 30% on energy – related expenses by using these programs. They offer financial incentives, like rebates and tax – credits. Detailed in our [Common Types of Rebates and Incentives] analysis, there are various types for different appliances.

How to claim federal tax credits for appliance upgrades?

To claim federal tax credits for appliance upgrades, first, ensure proper installation by a licensed contractor as per ENERGY STAR Guidelines. Then, check your eligibility based on income and appliance type (2025 Federal Guidelines). Gather all relevant purchase and installation receipts. Report the credit on your federal income tax return. Top – performing solutions include using tax – preparation software. Detailed steps are in our [Claiming Rebates and Incentives] section.

Tankless water heater rebates vs high – efficiency furnace incentives: What’s the difference?

Tankless water heater rebates usually require a residential property and the unit to meet energy – efficiency standards. They offset the higher upfront cost and save on energy bills over time. High – efficiency furnace incentives, on the other hand, depend on efficiency standards, manufacturer certification, and property being a primary residence in most cases. Unlike tankless water heater rebates, furnace incentives often involve tax – credits. More details are in our [Eligibility for Different Rebates] analysis.

Steps for applying for high – efficiency furnace incentives?

Check if your furnace meets efficiency standards like 2021 Energy Star criteria.
Ensure it has the necessary manufacturer certification.
Confirm that your property meets the criteria, typically being a primary residence.
Contact your utility company as many offer rebates for high – efficiency HVAC systems.
Keep all receipts and installation certificates as proof. Detailed information is in our [Application Process] section.