HVAC Tax Credits in 2026: What Ended and What's Left

What Ended on December 31, 2025

According to the IRS, the Energy Efficient Home Improvement Credit covers improvements made through December 31, 2025, and the Residential Clean Energy Credit is not available for property placed in service after December 31, 2025.

Any website, contractor quote or product listing that still promises a 30% federal credit on a 2026 installation is working from outdated information.

Can I Still Claim a Credit for a 2025 Installation?

Yes. If your system was installed and in service by December 31, 2025, you can claim the credit on your 2025 federal tax return using IRS Form 5695. Keep your itemized invoice, the AHRI certificate for your matched system, and the manufacturer’s certification or identification number. Check the IRS pages linked above for the current filing rules, and ask a tax professional if you are unsure how the credit applies to your return.

What Is Still Available in 2026

State Home Energy Rebates

The Inflation Reduction Act also funded two rebate programs that are run by each state, not claimed on your taxes. According to the U.S. Department of Energy, these rebates are available in select states:

• HOMES (Home Owner Managing Energy Savings): whole-home upgrades that are modeled to save at least 20% of energy use, with savings of up to $8,000. Open to households at all income levels; states may offer more to lower-income households.
• HEEHR (High-Efficiency Electric Home Rebate): rebates for efficient electric appliances, including heat pumps, and building envelope upgrades, with savings of up to $14,000.

Availability, income rules and amounts are set by each state, and not every state has launched. Contact your state energy office to find out whether a program is open where you live and what equipment it covers.

Utility Rebates

Many electric and gas utilities offer their own rebates for high-efficiency heat pumps, central air conditioners, furnaces and smart thermostats. These usually require equipment above the federal minimum efficiency, an AHRI-matched system, and sometimes pre-approval before installation. Check your utility’s website, or search by ZIP code in the Database of State Incentives for Renewables & Efficiency (DSIRE) at dsireusa.org.

Manufacturer Promotions

Equipment manufacturers and retailers run seasonal promotions on select systems. Use our Rebate Center to see offers available for equipment we carry in your area.

How to Make Sure You Qualify for a Rebate

• Check the program before you buy. Many rebates require pre-approval or a reservation before installation.
• Confirm the exact matched system. Rebates are tied to the AHRI certificate for your outdoor and indoor units, so verify the model numbers and the SEER2, EER2 or HSPF2 ratings the program requires.
• Use a licensed installer and pull permits. Most programs require a permitted, code-compliant installation and may ask for commissioning records.
• Keep your paperwork. Save the itemized invoice, AHRI certificate, model and serial numbers, and proof of payment.

Looking for qualifying equipment? Browse our heat pump systems and ductless mini split heat pumps, or call our team at 813-885-7999 for help matching a system to your local rebate requirements.

Frequently Asked Questions

• Is there a federal tax credit for a new heat pump in 2026?

  No. The federal Energy Efficient Home Improvement Credit (25C), which covered 30% of qualifying heat pump costs up to $2,000 a year, ended for equipment installed after December 31, 2025. State and utility rebates may still be available.

• I installed my system in 2025. Can I still claim the credit?

  Yes, if it was installed and in service by December 31, 2025. Claim it on your 2025 federal return with IRS Form 5695 and keep your invoice, AHRI certificate and manufacturer certification on file.

• Are the IRA Home Energy Rebates the same as the tax credit?

  No. The HOMES and HEEHR rebates are run by individual states and lower your cost directly, while the tax credits were claimed on your federal return. The rebates are only available in states that have launched a program.

• Where can I find rebates in my area?

  Start with your state energy office and your electric or gas utility, then check DSIRE at dsireusa.org and our Rebate Center for manufacturer offers.