Is There Still a Federal HVAC Tax Credit in 2026?

What changed for 2026

The 25C Energy Efficient Home Improvement Credit, which had offered a federal credit of up to 2,000 dollars for a qualifying heat pump and smaller amounts for other efficient equipment, expired at the end of 2025. Congress set that expiration in the One Big Beautiful Bill Act in July 2025. For HVAC equipment installed in 2026, the federal 25C credit is not available.

If you installed in 2025

If your qualifying heat pump or HVAC system was installed and placed in service on or before December 31, 2025, you may still claim the credit on your 2025 federal return during the 2026 filing season. Keep your invoice and the manufacturer certification. Confirm the details with a tax professional, because eligibility depends on the equipment and your tax situation.

Where savings still exist in 2026

State and utility rebates

Many states and local utilities run their own efficiency rebate programs that are separate from the federal credit. These change often, so check our rebates finder, your state energy office, and your utility provider for current heat pump and AC rebates.

Efficiency that pays you back

Even without the federal credit, a high-efficiency system lowers running cost every month it operates. A right-sized, higher-SEER2 system can pay back part of its cost through lower bills over the years you own it.

Always verify current incentives against your state energy office, your utility, and a tax professional before you count on them. This page reflects federal rules as of June 2026.