Federal tax credit (25C) ended
The federal Energy Efficient Home Improvement Credit (25C) ended for equipment installed after December 31, 2025. A system installed in 2026 does not qualify. Equipment installed on or before that date may still be claimed on the tax return for the year it was placed in service — ask a tax professional, and keep the invoice and AHRI certificate if that applies to you.
California rebates
- TECH Clean California: point-of-sale rebates for qualifying heat pump systems, applied through participating contractors.
- HEEHRA (Home Electrification rebates): income-qualified rebates that can cover a large share of a heat pump install for eligible households.
- Utility rebates: local utilities periodically offer their own efficiency rebates — availability changes year to year.
Why heat pumps win: Because California is pushing home electrification, the largest incentives are reserved for heat pumps. A heat pump replaces both your AC and furnace, so you’re often comparing a partially-rebated heat pump against a full-price AC + furnace.
How to qualify and claim
- Choose qualifying equipment. Efficiency ratings matter — we’ll recommend models that meet the credit and rebate requirements.
- Keep your paperwork. Save the invoice and the equipment’s efficiency certification (AHRI certificate) for tax time.
- Let us handle the rebates we can. For programs like TECH, the rebate is often applied through the contractor — we’ll walk you through what you qualify for.
- Do not count on 25C for a 2026 install. That federal credit ended for equipment installed after December 31, 2025.
Incentive amounts and eligibility rules change, so the best move is a free in-home estimate: we’ll match you with equipment that fits the California rebate programs still open, and show you the net cost after incentives and financing.
Frequently Asked Questions
No. The federal 25C Energy Efficient Home Improvement Credit ended for equipment installed after December 31, 2025. California programs such as TECH Clean California and HEEHRA may still apply. Ask a tax professional about equipment installed on or before that date.
Yes. Programs like TECH Clean California provide point-of-sale rebates for qualifying heat pumps, and income-qualified households may access larger HEEHRA electrification rebates.
Yes — for contractor-applied California programs we handle what we can and guide you on the documents to keep.
The largest California incentives are reserved for heat pumps. A standard high-efficiency AC may qualify for a smaller utility rebate, but it does not qualify for the federal 25C credit on equipment installed after December 31, 2025.