HVAC tax credits and rebates in 2026

Short answer: the federal Energy Efficient Home Improvement Credit (Section 25C) does not apply to equipment placed in service after December 31, 2025. It was ended early by Public Law 119-21, signed July 4, 2025. For a 2026 installation, a quote should not count on that federal credit. State, local and utility rebates are separate and may still be available.

What this means for your quote

The date that matters is when the equipment is placed in service, which generally means installed and ready to use, not when you sign. If a quote for a 2026 installation lists a federal tax credit as a saving, ask the contractor which credit they mean and where its terms are published, and check with a tax professional before relying on it.

Our checker flags a federal tax credit promised for a 2026 or later install as a high-priority question.

State, local and utility rebates

Rebates from states, cities and utilities are separate from the federal tax credit and change often. They usually have their own equipment requirements, application steps and deadlines, and some must be reserved before installation. Ask the contractor to write any promised rebate into the quote, including who applies, the amount and when it is paid.

Your utility's website and your state energy office are the best places to confirm what is currently offered.