Maryland HVAC Rebates & Tax Credits

In short, the main live program that lowers the cost of efficient HVAC for Maryland homeowners today is EmPOWER Maryland utility rebates, offered through your utility such as BGE. The federal 25C Energy Efficient Home Improvement Credit is no longer available: under federal law it ended for equipment placed in service after December 31, 2025 (verified against IRS guidance, July 2026).

The rebate details, dollar amounts, and qualifying equipment still change over time, and not every system or home will qualify. That is why we never quote a specific savings figure up front. Instead, we help you choose eligible equipment and point you to the current programs, then suggest you confirm the latest amounts. Ask us to check current eligibility for your project.

EmPOWER Maryland is a statewide effort that encourages energy efficiency, and utilities like BGE administer rebates that can apply to qualifying high-efficiency heating and cooling equipment. The idea is simple: when you install equipment that uses less energy, a rebate helps offset the cost.

As of July 2026, BGE's Home Performance with ENERGY STAR program lists whole-home rebates of up to $10,000 (or 75 percent of total project cost) for qualifying efficiency work, rising to a maximum of $15,000 when a project includes switching a combustion-fuel furnace, boiler, or water heater to a qualifying electric heat pump. A $100 home energy audit with a participating contractor is the entry point, and actual rebate amounts are based on modeled energy savings for your specific home (source: bgesmartenergy.com, verified July 2026). Because these details are updated periodically, the smartest move is to confirm what is active when you buy. We stay familiar with the programs and will help you select equipment that is positioned to qualify, then guide you on claiming the rebate.

The federal 25C Energy Efficient Home Improvement Credit was a tax credit, not a rebate, that reduced what qualifying homeowners owed when they filed. Under Public Law 119-21 (enacted July 4, 2025), the credit is not allowed for any property placed in service after December 31, 2025, so it no longer applies to new installations (source: IRS, verified July 2026).

If your qualifying system was installed and placed in service on or before December 31, 2025, you may still be able to claim the credit on the tax return for that year using IRS Form 5695. Because it is a tax matter, confirm the details with a tax professional. For new projects, focus on the EmPOWER Maryland utility rebates above.

In Greater Baltimore homes we often see the biggest incentives line up with heat pumps and high-efficiency upgrades, which fit our climate and our older Baltimore County housing well. A homeowner replacing an aging, inefficient system can often use a utility rebate to lower the real cost of a better system.

We also see confusion from outdated online articles quoting old amounts. Programs evolve, so a figure from last year may be wrong today. Rather than promise a number, we keep you pointed at the current programs and help you qualify, then let the official sources confirm the amount.

The best approach is to choose qualifying efficient equipment first, then line up the incentives. We help you pick eligible systems, provide the paperwork, and direct you to the current EmPOWER Maryland programs so you can confirm the latest amounts yourself.

Comfort Systems, Inc. has guided Baltimore-area homeowners through efficient upgrades since 1995. We are an Amana dealer, fully licensed and insured under Maryland Master HVAC License number 17072, and we offer financing through GoodLeap, subject to credit approval. Call (410) 529-1879 and ask us to check current eligibility for your project.