Texas HVAC rebates and tax credits 2026
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
| Utility | What's offered | Key rules |
|---|---|---|
| Austin Energy | AC and heat pump rebates; heat pump tiers $650/$750/$950; higher through Home Energy Savings | Participating contractor; existing system and home 10+ years old |
| CPS Energy | Central AC and heat pump: $90–$310 per ton | Projects 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 program | Through participating service providers; funding-limited |
| CenterPoint Energy | Incentives starting at $200 on 15.2+ SEER2 systems | Houston 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.
More guides
- AC replacement cost in Texas (2026)
- Repair vs replace: the $5,000 rule
- SEER2 requirements in Texas (DOE 2023 South region)
- How to check an HVAC contractor's TDLR license
- Heat pump vs furnace in Texas
- Signs your AC is failing
- Emergency AC repair: what to do first
Sources
- IRS: FAQs on OBBB changes to 25C, 25D and other credits
- IRS: Energy Efficient Home Improvement Credit
- Austin Energy: Air Conditioning rebates
- Austin Energy: Home Energy Savings
- CPS Energy: HVAC Rebates
- Oncor Take a Load Off Texas: Residential
- CenterPoint Energy: Heating and Cooling Rebates
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