Are There Any HVAC Incentives in 2026?
- What to Look for When Hiring an AC Installation Company
- What Does an AC Tune-Up Include — And is It Worth the Cost?
- How to Finance a New HVAC System: Your Options When You Can't Pay Upfront
- How to Get HVAC Estimates: What Fair Pricing Looks Like and How to Avoid Overpaying
- When Should You Schedule Your HVAC Tune-Up? A Seasonal Timing Guide
Repairing your HVAC system in a timely fashion is key to keeping your home properly ventilated and at the right temperature. But it can be costly.
Getting a pro to fix your AC can cost a few hundred dollars or a few thousand, depending on your system and what’s wrong. While you may remember several generous federal incentives in recent years, many of those cost-saving measures have since expired. You might still be able to trim your HVAC bill with incentives, but their availability generally depends on your location, income, type of equipment and installation date.
What happened to the federal HVAC incentives?
The energy efficient home improvement credit (also known as the 25C tax credit) — a federal tax incentive that let homeowners claim up to $3,200 per year for eligible home upgrades — was expanded under the 2022 Inflation Reduction Act. But Congress later accelerated the expiration date of the credit to Dec. 31, 2025.
If your project was completed before the end of last year, it may be eligible. But if it was completed after, you’ll have to look elsewhere to cut costs.
"There are no current federal tax credits that are offered for 2026 high efficiency or more efficient installations. There are still some that are eligible to be claimed for installations made before 2025,” says Steve Wade, senior director of operations and procurement at ARS/Rescue Rooter.
Several other energy-related credits have also expired, such as the residential clean energy credit (25D), which allowed homeowners to save on clean energy purchases such as solar panels and wind turbines. While some lawmakers on both sides of the aisle have introduced bills that would bring back some of the incentives Congress shortened, none have been enacted.
Regardless of whether these efforts pass, there are still HVAC discounts to be found — if you know where to look.
“We do still see a lot of local, state and municipal offerings for rebates or incentives," Wade says, especially from gas, utility and electricity companies. "That's where you'll see the majority of the benefits."
What HVAC tax credits your state may offer
The High-Efficiency Electric Home Rebate (HEEHR) and Home Owner Managing Energy Savings Rebates (HOMES) programs were two initiatives funded by the Inflation Reduction Act. But the U.S. Department of Energy has since issued guidance that significantly limits how they can be used.
“The new guidance prohibits households from using rebate funds to replace old, polluting fossil fuel-fired appliances, such as gas furnaces, with efficient electric alternatives like heat pumps,” the Sierra Club, an environmental organization, said in a June statement. “Instead, the rebates will only be allowed for electric-to-electric appliance changes.”
You may still be able to save some money with these rebates, but it depends on where you live, since the programs are available in select states (for instance, eligible New Yorkers may be able to save on heat pumps, but homeowners in South Dakota don’t have the same incentives). The Energy Department recommends contacting your state energy office for more information on their status and eligibility requirements. You can also ask your HVAC contractor for details.
Find incentives from utility companies
For a lot of homeowners, the biggest savings will come from HVAC rebates offered directly from utility companies. Electric and gas utilities companies will often offer rebates if you buy specific, energy-efficient HVAC equipment, such as high-efficiency air conditioners, certain heat pumps and smart thermostats. For example, ComEd in Illinois offers $75 off certain smart thermostats, while Florida Power & Light offers a $200 rebate on ACs installed by certain contractors.
These incentives can change over time — and can be offered on a first-come, first-served basis — so be sure to find the most up-to-date information before making a purchase. You can start with simply searching for energy efficiency rebates on your utility company’s website. Your HVAC contractor may be able to handle the rebate paperwork for you.
Check for HVAC manufacturer offerings
Some HVAC manufacturers also offer promotions, rebates, low-interest financing, extended warranties and cash-back promotions. Promotions are often seasonal so, again, it’s important to confirm what’s currently available before relying on the savings. For instance, Carrier customers can save up to $2,100 on certain heating and cooling products during certain times of the year.
You can often combine these offerings with other cost-saving measures, such as rebates from utility companies.
Home service done the right way
How to find HVAC incentives in your area
HVAC incentives can change based on your ZIP code, equipment, the time of year and more. To see what’s available now, start by searching for rebates via your state's energy office. You may be able to find rebates via its website, or you can call the office directly.
Next, you can search for rebates from your utility provider. Companies often have this information on their websites, or you can contact the provider directly to ask.
The government's ENERGY STAR rebate finder can be a useful tool for finding HVAC rebates, as well. Simply enter your ZIP code and you can see the companies offering rebates, how much they are for and how long the offers are available. The Database of State Incentives for Renewables and Efficiency, operated by N.C. State University's N.C. Clean Energy Technology Center, is another good resource. You can select your state or enter your ZIP code to find incentives and policies near you.