Apex HVAC Tax Credits and Duke Energy Rebates
Incentives for heat pumps and high-efficiency HVAC changed significantly at the start of 2026. The federal Section 25C energy efficient home improvement credit, which offered up to $2,000 a year for qualifying heat pumps, was ended by the 2025 federal law commonly called the One, Big, Beautiful Bill. Utility rebates remain an option for many Apex homeowners.
This page explains what changed and what is still available.
The federal 25C credit
According to the IRS, the Section 25C credit is not allowed for any property placed in service after December 31, 2025. Equipment installed in 2025 may still be claimed on 2025 returns if it met the rules, including the qualified manufacturer identification requirements. For a system installed in 2026, there is no 25C credit. Be cautious of any sales pitch that still promises it.
Duke Energy Smart $aver
Duke Energy's Smart $aver home improvement program offers rebates on qualifying HVAC equipment, heat pump water heaters, insulation and air sealing. Duke says customers use a participating contractor from its network, the contractor submits the rebate application, and payment typically arrives in about four to six weeks. Rebate amounts and efficiency requirements change; check Duke Energy's site for current terms before signing a contract.
Which customers qualify
Smart $aver applies to Duke Energy residential electric customers. Apex is served by Duke Energy, but confirm your utility on your bill. Eligibility can depend on home type, equipment efficiency, and whether you are replacing a working or failed system.
Documentation to keep
Keep the contract, invoice, equipment model and serial numbers, efficiency certificates (AHRI), the permit and final inspection record, and any rebate confirmation. These help with warranty claims, resale and any future incentive programs.
Permits still apply
Incentives do not change permit rules: the Town of Apex requires a mechanical permit for HVAC replacement, submitted by a licensed contractor. Some rebate programs require proof of a permitted, inspected installation.
Choosing equipment
Efficiency ratings such as SEER2 and HSPF2 affect operating cost and rebate eligibility. Ask bidders to show which models qualify for current Duke Energy rebates and what the operating savings are expected to be.
Published HVAC cost estimates
| Item | Published range | Source |
|---|---|---|
| HVAC system replacement | $5,000–$12,500 (avg. about $7,500); up to about $22,000 with ductwork and upgrades | Angi 2026 |
| Heat pump replacement | $4,236–$7,942 (avg. about $6,087) | Angi 2026 |
| Air-source heat pump, installed | $4,500–$8,000 | Angi 2026 |
| General HVAC repair | $130–$2,000 (avg. about $350) | Angi 2026 |
| Heat pump repair | $161–$661 (avg. about $410) | Angi 2026 |
| Compressor repair | $650–$2,400 | Angi 2026 |
Sources: Angi: HVAC replacement cost (2026); Angi: Heat pump cost (2026); Angi: HVAC repair cost (2026); Angi: Heat pump repair cost (2026). Figures are published national or regional estimates compiled by those sites, labeled as estimates; they are not quotes and not prices from any provider on this site. Town of Apex permit fees are separate and set by the Town.
Local rules and code references
- IRS FAQs on the One, Big, Beautiful Bill energy credit changes: the Section 25C energy efficient home improvement credit is not allowed for property placed in service after December 31, 2025.
- Town of Apex, When do you need a permit?: lists replacing and reconnecting furnaces and adding to or modifying the heating and air conditioning system as work that requires a permit regardless of cost.
- Town of Apex, Obtaining a Building Permit: residential single-trade mechanical permits must be submitted through ePermits by a licensed contractor.
- Duke Energy Smart $aver home improvement rebates: program description: participating contractor submits the application; payment typically in 4–6 weeks.
Code text and department procedures change; confirm current requirements with the jurisdiction before work starts.
Frequently asked questions
- Is there still a federal tax credit for heat pumps?
- Not for new installs. The IRS says the Section 25C energy efficient home improvement credit is not allowed for property placed in service after December 31, 2025.
- Can I still claim 25C for a heat pump installed in 2025?
- The IRS says the credit applies to property placed in service through December 31, 2025, subject to its rules; consult a tax professional for your return.
- Does Duke Energy offer HVAC rebates in Apex?
- Duke Energy's Smart $aver program offers rebates on qualifying equipment installed by participating contractors; check current terms on Duke Energy's site.
- Who applies for the Duke Energy rebate?
- Duke says the participating contractor completes and submits the application on your behalf.
- How long do Duke Energy rebates take?
- Duke says payment typically takes about four to six weeks after the application is received.
- Do I need a permit to replace an HVAC system in Apex?
- Yes. The Town of Apex lists replacing and reconnecting furnaces and modifying the heating and air-conditioning system as permit work, and N.C. Gen. Stat. §160D-1110 excludes HVAC replacement from the $40,000 permit exemption.
Related local guides
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