HVAC Tax Credits and Rebates in South Carolina​​​

South Carolina homeowners can take advantage of multiple federal tax credits and rebates from South Carolina Energy & Gas. Here we’ve compiled a list of available incentives as of August 2018.

Why Upgrade your Heating System?

By upgrading your home’s heating and air equipment, you’re not only saving money each month on the energy bill but are doing your part to preserve South Carolina’s natural resources. In an effort to incentivize homeowners to take steps toward a more sustainable environment, both the federal government and state energy provider offer programs to help make upgrading your equipment more affordable.

Federal HVAC Tax Credits

Many of the federal tax credits for homeowners purchasing energy-efficient equipment in 2017 have been renewed for 2018. These federal tax credits provide incentives to homeowners to make their homes more energy efficient by installing ENERGY STAR certified equipment in their homes.

Equipment with the ENERGY STAR rating uses less energy and minimizes the negative impact on our environment. If you choose to install this equipment in your home, you may be eligible for tax credits for the 2018 tax year.

Here is a list of ENERGY STAR equipment currently eligible for federal tax incentives. You can view a full list here.

Heat Pumps​

Heat Pumps with a minimum SEER of 14 qualify for up to a $300 credit.

Central Air Conditioning

Central air systems with a minimum SEER of 14 are eligible for up to $300 in tax credits.

Hot Water Boilers

Certain hot water boilers are eligible for up to $150 in tax credits. Refer to the equipment manufacturer of your HVAC provider for more details.

Water Heaters

Did you know water heaters can account for 14-25% of your home energy consumption? For this reason, installing a new water heater could earn you a $300 tax credit.


Insulation is one of the most cost-effective ways to reduce your energy expenses. You can get a tax credit for 10% of the cost (not including installation) up to $500.


Certain ENERGY STAR certified roofing materials are eligible for up to 10% of the cost (not including installation) in tax credits up to $500.

Doors, Windows, and Skylights

Certain doors, windows, and skylights qualify for a tax credit of 10% of the cost (not including installation) up to $500.

South Carolina HVAC Rebates

South Carolina Energy & Gas (SCE&G) customers can take advantage of several HVAC related rebates to save money while making their home more efficient.

Equipment must be ENERGY STAR certified and meet other eligibility requirements.

Heating and Cooling System Rebates in South Carolina

You can get a rebate of up to $500 on a new heat pump or central air conditioning system depending on the system specifications. Download SCE&G’s Residential Heating and Cooling Overview for more information.

Ductwork Improvements

Minor ductwork improvements including duct sealing and duct insulation are eligible for a $150 rebate. A complete duct replacement is eligible for a $300 rebate. Improvements must be made by a licensed mechanical contractor. See the Residential Heating and Cooling Overview for more information about the program.

Natural Gas Conversion

Homeowners converting certain heating systems like cooktops and water heaters are eligible for rebates through SCE&G. You can find more information about the natural gas conversion program here.