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Texas HVAC rebates and tax credits 2026

By the Texas Comfort Quotes editorial team · Last updated · How we research

The federal 25C tax credit (30%, up to $2,000 for heat pumps) ended for equipment placed in service after December 31, 2025, so 2026 installations don't qualify. Texas utilities still offer rebates in 2026, including Austin Energy, CPS Energy, Oncor and CenterPoint Energy, usually through participating contractors.

Federal 25C credit: ended

The IRS confirms that under Public Law 119-21 (signed July 4, 2025), the 25C Energy Efficient Home Improvement Credit "will not be allowed for any property placed in service after December 31, 2025." If your system was installed and working in 2025, you can claim it on your 2025 return with Form 5695.

Utility rebates checked October 2026

UtilityWhat's offeredKey rules
Austin EnergyAC and heat pump rebates; heat pump tiers $650/$750/$950; higher through Home Energy SavingsParticipating contractor; existing system and home 10+ years old
CPS EnergyCentral AC and heat pump: $90–$310 per tonProjects Feb 1, 2026 to Jan 31, 2027; apply within 30 days
Oncor (Take a Load Off Texas)HVAC replacement incentives through the Home Energy Efficiency programThrough participating service providers; funding-limited
CenterPoint EnergyIncentives starting at $200 on 15.2+ SEER2 systemsHouston Electric service area; applied by participating contractor

Rebates change and run out. Confirm current terms on the utility's site before you buy. If your utility isn't listed, check its website; we only list programs we could verify.

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Questions

Is there a federal tax credit for a new AC in 2026?

No. The 25C credit ended for property placed in service after December 31, 2025.

Does Texas have a state HVAC rebate?

We didn't find a statewide program open to homeowners; rebates come from utilities such as Austin Energy, CPS Energy, Oncor and CenterPoint.

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Sources