Short answer: not from the federal government, and not for a system installed in 2026. The federal tax credits that covered residential heating and cooling equipment applied to property placed in service on or before December 31, 2025. A system installed today does not qualify for them. There are still real ways to bring the cost of a replacement down, and they are below.
What changed
Two federal credits used to apply to residential HVAC work. Both have ended for new installations.
- The Energy Efficient Home Improvement Credit, known as 25C, covered qualifying heat pumps, central air conditioners, furnaces and boilers. The IRS states it applied to property placed in service before December 31, 2025.
- The Residential Clean Energy Credit, known as 25D, covered geothermal heat pumps and solar. The IRS states it is not available for any property placed in service after December 31, 2025.
If your system was placed in service in 2025 or earlier, you may still be able to claim the credit for that tax year. The year the equipment went into service is what counts, not the year you file. Your accountant is the right person to confirm it.
What this means if you are replacing a system now
Budget without the federal credit. If you have come across an article or a contractor page promising $2,000 back on a heat pump or a few hundred dollars on an air conditioner, those figures come from the 25C rules that no longer apply to a new installation. Planning around money that is not coming is an expensive way to start a replacement.
It also takes away a reason to rush. Some homeowners moved a replacement forward to beat the 2025 deadline. That deadline has passed, so the decision goes back to where it belongs: the condition of your system, what it costs you to run, and what it is likely to need next.
What can still bring the cost down
Financing. We offer financing on new systems, advertised from $83 per month. That figure is an example rather than a quote. It depends on the loan amount, term, rate and down payment, and it is subject to credit approval and lender terms. See our financing options for current details.
Current offers. Our specials page carries whatever is running at the moment, including a discount on a new system installation and free estimates on new systems. Offers change, cannot be combined with one another, and eligibility depends on the job, so that page is the place to check rather than this one.
Manufacturer rebates. Equipment manufacturers run their own seasonal rebates, and they vary by brand, model and time of year. We check what is available on the equipment we are quoting as part of the estimate. You can see the brands we install to get a sense of the range.
Utility programs. Some electric and gas utilities offer rebates on high-efficiency equipment. The programs differ by utility and change from year to year, and our service area spans several utility territories, so the right answer depends on who bills you. Check with your utility directly, or ask us during the estimate.
How to check any of this yourself
- IRS: Energy Efficient Home Improvement Credit
- IRS: Residential Clean Energy Credit
- ENERGY STAR: federal tax credits
- DSIRE: state and utility incentive database
This page is general information, not tax advice. Tax rules change and individual circumstances differ, so confirm anything here with a qualified tax professional before relying on it. Last reviewed September 2026.
Get a straight answer on what a new system will cost
We do not publish installed price ranges, because the honest number depends on your home: its size and layout, the condition of the ductwork, what is being replaced and what the system actually has to do. What we will do is come and look, at no cost and with no obligation, and tell you what the job involves. If replacing it is not the right call yet, we will tell you that too.
Book a free, no-obligation in-home estimate with Topline Heating & Air, or read more about air conditioning installation and replacement.