Federal IRA tax credits (2026)
Heat pumps: 30% of project cost (cap $2,000). High-efficiency AC + furnace: 30% (cap $600). Insulation/sealing: 30% (cap $1,200). Heat-pump water heaters: 30% (cap $2,000). Total annual cap: $3,200. Use Form 5695 with your tax return.
AEP Ohio energy-efficiency rebates
Heat pump (16+ SEER2 / 8.5 HSPF2): $400–$1,200. Smart thermostat: $50 instant rebate at point-of-sale (Nest, Ecobee, Honeywell). Heat-pump water heater: $300–$500. EV charger: $250 home rebate. Submit at aepohio.com/save.
Columbia Gas of Ohio rebates
High-efficiency furnace (95% AFUE+): $250. Tankless water heater: $200. Smart thermostat: $50. Programmable thermostat install: $25. Submit at columbiagasohio.com/rebates.
Income-qualified ($8,000 IRA HOMES)
Households below 80% of Lucas County median income may qualify for a $14,000 IRA HOMES rebate covering most of a heat-pump conversion. Ohio's program rolls out fully in 2026 — ask your HVAC contractor about HOMES eligibility.
Frequently asked
Can I stack rebates and tax credits?
Generally yes. IRA tax credits + state utility rebates stack. The IRA HOMES income-qualified rebate cannot be combined with the 25C tax credit on the same equipment.
Do I claim these or my contractor?
AEP / Columbia Gas rebates: contractor usually submits them and credits the rebate against your invoice. IRA tax credits: you claim on your return — keep all invoices and Manufacturer Certification statements.
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