Are There Any HVAC Incentives in 2026?

In today’s world, keeping your home properly ventilated and at the right temperature is essential. However, repairing your HVAC system can be quite expensive. The cost of hiring a professional to fix your AC can range from a few hundred dollars to a few thousand, depending on the system and the issue at hand. While there have been several federal incentives in the past to help offset these costs, many of them have since expired.

One such incentive was the energy efficient home improvement credit, also known as the 25C tax credit. This credit allowed homeowners to claim up to $3,200 per year for eligible home upgrades. Unfortunately, Congress accelerated the expiration date of this credit to December 31, 2025, leaving many homeowners without this cost-saving measure. However, there are still opportunities to lower your HVAC bill through incentives, depending on your location, income, type of equipment, and installation date.

Although federal incentives may be limited, there are still discounts available for HVAC repairs and installations. Local, state, and municipal offerings often provide rebates or incentives, especially from gas, utility, and electricity companies. These incentives can vary depending on where you live, so it’s important to research what is available in your area.

Additionally, some states offer their own HVAC tax credits. Programs like the High-Efficiency Electric Home Rebate and Home Owner Managing Energy Savings Rebates can help offset the cost of energy-efficient upgrades. However, recent guidance from the U.S. Department of Energy has limited the use of these funds for certain appliances, so it’s important to check with your state energy office for eligibility requirements.

Utility companies also offer HVAC rebates for specific energy-efficient equipment, such as high-efficiency air conditioners and smart thermostats. These rebates can vary by company and are often offered on a first-come, first-served basis. Checking your utility company’s website for the most up-to-date information is recommended.

Furthermore, HVAC manufacturers often provide promotions, rebates, and cash-back offers on their products. These promotions can be seasonal, so it’s important to verify what is currently available before making a purchase. Combining manufacturer offerings with rebates from utility companies can maximize your savings.

To find HVAC incentives in your area, start by searching for rebates through your state’s energy office or utility provider. The ENERGY STAR rebate finder and the Database of State Incentives for Renewables and Efficiency are also useful tools for locating incentives and policies near you. By taking advantage of these incentives, you can save money on HVAC repairs and installations while keeping your home comfortable and energy-efficient.