2026 PA HVAC Rebates & Tax Credits

Berks County savings on heat pumps, furnaces, boilers & water heaters

If you are replacing HVAC equipment in Berks County in 2026, you may be able to stack a local utility rebate with a federal tax credit and cut your out-of-pocket cost meaningfully. The two utilities that serve most of our area, UGI and Met-Ed, both run residential rebate programs, and the federal government offers energy tax credits on qualifying high-efficiency equipment. This guide breaks down what is available, which upgrades qualify, and how to claim it. Rebate amounts and program rules change, so always confirm current terms with the utility or a tax professional before you buy. Our team can also tell you which incentive fits the equipment you are considering. Call (610) 780-9350.

UGI Save Smart Rebates (Natural Gas)

UGI's Save Smart program offers rebates when you install qualifying high-efficiency natural gas equipment. These are the residential rebates most relevant to a heating or water-heating upgrade in our service area:

Equipment	Requirement	Rebate
Gas furnace	ENERGY STAR certified	$500
Gas boiler	94+ AFUE	$1,200
Tankless water heater	ENERGY STAR certified gas	$400

If you heat with natural gas, a high-efficiency furnace installation or boiler installation is often the clearest path to a rebate. The $1,200 boiler rebate is one of the larger single incentives available locally, which matters for the many older Berks County homes that run hydronic or radiator heat. A tankless water heater upgrade can add the $400 rebate on top.

Met-Ed Residential Rebates (Electric)

Met-Ed, the electric utility across much of Berks County, runs a residential rebate program on ENERGY STAR certified cooling and heat-pump equipment:

Equipment	Requirement	Rebate
Geothermal heat pump	ENERGY STAR certified	Up to $650
Air-source heat pump	ENERGY STAR certified	Up to $500
Central air conditioner	ENERGY STAR certified	Up to $250

Heat pumps carry the strongest incentives here because they run on electricity and are highly efficient. If you are weighing a heat pump installation or replacing an aging central air conditioner, the Met-Ed rebate can be combined with the federal tax credit below. We service geothermal on a repair-and-maintenance basis and can advise on Met-Ed's geothermal rebate for existing systems.

Federal Tax Credits & Home Energy Rebates

The U.S. Department of Energy's residential home energy programs and the federal Energy Efficient Home Improvement Credit reward high-efficiency upgrades. These are claimed through your federal tax return or the applicable program, separate from the utility rebates above:

Upgrade	Benefit
Heat pumps	30% of cost, up to $2,000 per year
Efficient central air conditioner	30% of cost, up to $600
Efficient heating equipment	30% of cost, up to $600

Because the federal benefit is a percentage of what you spend, it scales with the size of the project, and it can be layered on top of a UGI or Met-Ed rebate for the same piece of equipment. Eligibility depends on the equipment's efficiency rating and current program rules, so keep your invoice and the manufacturer's certification statement, and confirm details with a tax professional.

How to Claim Your Rebate, Step by Step

Confirm the equipment qualifies. Check that the model is ENERGY STAR certified or meets the program's efficiency threshold before you buy. We can confirm this on any system we quote.
Keep every document. Save your paid invoice, the model and serial numbers, and the manufacturer's certification statement. Rebate and tax-credit applications ask for these.
Submit the utility rebate. UGI and Met-Ed each have a residential rebate application on their websites. Submit within the program's deadline after installation.
Claim the federal credit at tax time. The Energy Efficient Home Improvement Credit is claimed on your federal return for the year the equipment was placed in service.
Ask us if you are unsure. We install this equipment every week and can point you to the right form for your upgrade.

Which Upgrade Qualifies? Talk to Art Smith And Son

The fastest way to know what you can save is to tell us what you are replacing. We serve Berks County from our Fleetwood headquarters, we install the equipment that qualifies for these programs, and we do not charge for an estimate on new equipment. If a rebate makes an upgrade affordable, we will tell you, and if financing helps bridge the rest, we work with several lending partners. Explore the paired cost guide to see what else moves the total price of a project.

Frequently Asked Questions

What is the $5,000 rule for HVAC repair vs. replacement?

The $5,000 rule is a rule of thumb: multiply the age of the system by the estimated repair cost, and if the result is more than $5,000, replacement is usually the smarter choice. A cheap repair on a young system is worth it; an expensive repair on an old system rarely is. We give you the honest number so you can decide.

Do you offer financing for HVAC replacements?

Yes. We work with lending partners so you can spread the cost of a new system over manageable payments. Financing pairs well with rebates and tax credits, which reduce the total you finance. Ask us to walk through the options when we provide your estimate.

Can I combine a utility rebate with the federal tax credit?

In most cases yes. A UGI or Met-Ed rebate and the federal Energy Efficient Home Improvement Credit are separate programs, so qualifying equipment can earn both for the same installation. Keep your invoice and the manufacturer's certification statement, and confirm current terms with the utility and a tax professional.

We Offer Financing

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Call Us (610)-780-9350