What Does a New HVAC System Cost in Chicago?
A new furnace installation in Chicago typically ranges from $3,500 to $8,000 installed, depending on efficiency, brand, and complexity. A new central air conditioner runs $4,000 to $10,000 installed. A complete system replacement (furnace + AC + coil) typically ranges from $8,000 to $18,000 or more for high-efficiency equipment.
These are significant investments — but they are also long-term assets. A properly installed high-efficiency system lasts 15–20 years and reduces energy costs throughout its life.
Manufacturer Financing Programs
Most major HVAC manufacturers offer financing through third-party lenders. These programs typically offer:
- Deferred interest promotions (0% interest if paid in full within 12–18 months)
- Low fixed-rate installment loans (typically 6–12% APR)
- Extended terms up to 84 months for larger purchases
D's Air & Heating offers financing on new equipment installations. Ask about current financing promotions when you request a free estimate.
Federal Tax Credits (IRA Energy Efficiency Credits)
The Inflation Reduction Act (IRA) created significant federal tax credits for high-efficiency HVAC equipment. For tax year 2025 and beyond:
- High-efficiency heat pumps: Up to $2,000 tax credit (30% of cost, up to $2,000) for qualifying heat pump installations
- High-efficiency furnaces and boilers: Up to $600 tax credit for qualifying gas furnaces and boilers meeting efficiency thresholds
- Central air conditioners: Up to $600 tax credit for qualifying high-efficiency AC systems
- Home energy audits: Up to $150 tax credit for a professional home energy audit
Tax credit eligibility depends on equipment efficiency ratings and your tax situation. Consult a tax professional for advice specific to your situation. D's Air & Heating can provide documentation of equipment efficiency ratings for tax credit claims.
Utility Rebates in Chicago
ComEd and Peoples Gas offer rebates for high-efficiency HVAC equipment in the Chicago area. Rebate amounts change periodically — check the current programs before purchasing:
- Peoples Gas: Rebates for high-efficiency furnaces (96%+ AFUE) and boilers. Amounts vary by equipment type and efficiency level.
- ComEd: Rebates for high-efficiency central air conditioners, heat pumps, and smart thermostats.
- Illinois Home Weatherization Assistance Program (IHWAP): Income-qualified households may receive free or subsidized HVAC equipment and weatherization through this state program.
D's Air & Heating can help identify rebates available for your specific equipment selection. Ask about current rebates when you request a free estimate.
Home Equity Options
For larger HVAC projects, a home equity loan or home equity line of credit (HELOC) often offers lower interest rates than manufacturer financing. Interest on home equity loans used for home improvements may be tax-deductible — consult a tax professional.
Contact D's Air & Heating at (773) 940-0965 for a free estimate on a new HVAC system and to discuss financing options for your Chicago home.