HVAC Rebates and Incentives: What Is Available in 2026?

The incentive landscape for HVAC equipment changed significantly at the start of 2026, and much of the advice online is still wrong. The biggest change: the federal Section 25C heat pump credit expired on December 31, 2025. But rebates have not disappeared — they have shifted to state and utility programs, and in some areas the combined value is still substantial. This guide covers exactly what is available in 2026, what expired, and how to find and claim the right programs.

What federal HVAC credits still exist in 2026?

The Section 25C Energy Efficient Home Improvement Credit, which offered up to $2,000 on qualifying heat pumps and smaller amounts on air conditioners and furnaces, expired at the end of 2025 and does not apply to equipment installed in 2026. The Section 25D Residential Clean Energy Credit, covering geothermal (ground-source) heat pumps at 30 percent of project cost, remains available through 2032. If you are considering geothermal, this is a significant incentive.

State and utility rebates: the 2026 opportunity

With the federal air-source credit gone, state programs and utility rebates are now the primary incentive for most homeowners. These vary widely by provider and location. Some examples of what types of programs exist: cash rebates on qualifying heat pump installations (often several hundred to over a thousand dollars), rebates on high-efficiency air conditioners and furnaces, smart thermostat incentives, and income-qualified programs with enhanced rebates for eligible households.

Program amounts, eligibility, and timing change by year and by utility, which is why we link to the source rather than publishing dollar amounts that go stale. The DSIRE database and your utility’s efficiency program page are the two authoritative sources. Start with the HVAC rebate and incentive finder to see what program types apply for your state and equipment.

How to claim HVAC rebates

Most utility rebates require an application within a set window after installation, typically 60 to 90 days. Keep your itemized invoice, the equipment model numbers, and the efficiency certification from your contractor. Some programs require a pre-approval step before you start the project. Income-qualified programs usually need documentation of household income. For the federal 25D geothermal credit, the claim is made on your tax return for the year the system is placed in service.

Do rebates affect which system to buy?

They can. A rebate that knocks a meaningful amount off a high-efficiency heat pump can make it cost-competitive with a standard-efficiency AC, shifting the math in favor of the heat pump. Before committing to equipment, check both the base price (use the heat pump cost calculator or AC cost calculator) and the rebate-adjusted net price for each option. That comparison — not the sticker price — is the one that matters.

Frequently asked questions

Are there HVAC rebates in 2026?

Yes. The federal 25C heat pump credit expired, but state and utility rebates remain widely available. Check your utility’s current programs and the DSIRE database for what applies in your area.

What federal HVAC tax credits are available in 2026?

Only the Section 25D geothermal heat pump credit (30% of cost through 2032) remains. The Section 25C credit for air-source heat pumps, ACs, and furnaces expired December 31, 2025.

How do I apply for an HVAC rebate?

Most utility rebates require an application with your invoice and equipment model numbers, submitted within 60 to 90 days of installation. Some programs require pre-approval before the project starts.