Financing & Rebates
Make Your System Upgrade Affordable
Replacing a boiler, furnace, or AC isn't cheap — but it doesn't have to be paid out-of-pocket up front. Here are the financing paths, manufacturer rebates, utility rebates, and federal tax credits we help our clients use to bring real systems within reach.
1. Third-Party Financing
Promotional Financing on Approved Credit
For homeowners who'd rather spread the investment over time, we partner with national HVAC financing providers to offer programs such as:
- 0% APR promotional periods on qualifying installations
- Fixed-rate installment loans (typically 12–144 months)
- Same-as-cash deferred-interest options
Subject to credit approval and lender terms. Full disclosures provided during proposal review.
2. Federal Tax Credits (2026)
Inflation Reduction Act Credits Still Available
- 30% federal tax credit on geothermal heat pump systems (residential clean energy credit, through 2032)
- Up to $2,000 federal tax credit on qualifying cold-climate air-source heat pumps (Section 25C)
- Up to $600 on qualifying natural gas furnaces and boilers meeting CEE Tier 2 efficiency
We are not tax professionals; verify eligibility with your accountant. We provide AHRI certificates and manufacturer documentation for every install.
3. Utility Rebates
Minnesota Power, Comfort Systems & Xcel
Local utilities offer rebates on a wide range of high-efficiency equipment. We handle the paperwork as part of every install:
- Minnesota Power — geothermal and air-source heat pump incentives, plus electric water heater rebates
- Comfort Systems (Duluth's gas utility) — high-efficiency furnace and boiler rebates; routinely $300–$800 per qualifying system
- Xcel Energy (for service territory in surrounding areas) — heat pump and high-efficiency equipment programs
4. Manufacturer Rebates
Seasonal Manufacturer Promotions
Most major HVAC manufacturers (Lochinvar, Bosch, Mitsubishi, Carrier, etc.) run quarterly promotions on qualifying equipment. We watch for them, time projects when it makes sense, and pass every dollar through to you.
Common Questions
Financing, Rebates & Tax Credits — FAQ
Do you offer HVAC financing in Duluth, MN?
Yes. Design Heating partners with third-party HVAC lenders (Synchrony, GreenSky, and Service Finance) to offer 0% APR promotional financing, deferred-interest plans, and longer-term reduced-rate loans on qualifying installations. We do not finance projects in-house. Most homeowners qualify, and applications take just a few minutes.
What rebates are available for new HVAC equipment in Northeastern Minnesota?
Available rebates change year to year, but typically include: Minnesota Power rebates for high-efficiency heat pumps, geothermal, and ENERGY STAR equipment; Comfort Systems (Duluth) rebates for natural gas equipment; manufacturer rebates from Viessmann, Lochinvar, Mitsubishi, and others; and federal Inflation Reduction Act incentives. We handle all rebate paperwork on your behalf.
What is the 30% federal tax credit for geothermal?
The Inflation Reduction Act extended the Residential Clean Energy Credit through 2032, providing a 30% federal income-tax credit on the full installed cost of qualifying ground-source geothermal heat pumps — with no dollar cap. For a $40,000 geothermal install, the credit is $12,000. We provide all documentation required for your tax filing.
Are heat pumps eligible for the IRA tax credit?
Yes. Qualifying air-source heat pumps (including ductless mini-splits) are eligible for a 30% federal tax credit capped at $2,000 per year under the IRA. Heat pump water heaters are also eligible. Standard furnaces and boilers may qualify for a smaller credit (up to $600) if they meet efficiency thresholds.
How much can I finance for an HVAC project?
Most lenders we partner with finance from $1,000 to $75,000 for residential HVAC projects, depending on credit qualification. Larger projects (whole-home geothermal, full hydronic redesigns) can typically be fully financed. We'll help you choose the financing plan that minimizes your total cost.
Let's Talk Numbers
Ready to See What Your Project Could Look Like?
Every free estimate includes a side-by-side comparison of cash, financed, and high-efficiency scenarios — including every rebate and credit we can find for your specific system.