Savings & Incentives Update
HVAC Tax Credit 2026: A Florida Homeowner's Guide What Ended, What You Can Still Claim, What Still Saves
If you are planning a new AC or heat pump, the HVAC tax credit landscape for 2026 looks very different from a year ago. Here is what changed with the federal credit, who can still claim it, and where Florida homeowners can still find savings.
The Short Answer
Is There a Federal HVAC Tax Credit in 2026?
For most homeowners, no. The federal Energy Efficient Home Improvement Credit (Section 25C of the tax code) was terminated by federal tax legislation passed in July 2025. It no longer applies to qualifying property placed in service after December 31, 2025.
In plain terms, a central AC or heat pump installed in 2026 does not earn the 25C credit, regardless of its efficiency rating. If you see an ad or quote promising a federal tax credit on a 2026 installation, ask the company to explain the basis in writing, and check with your tax advisor before relying on it.
This article is general information, not tax advice. Your situation may have details that change the answer, so confirm with a qualified tax professional before you file.
Looking Back
Claiming the 25C Tax Credit for a Heat Pump Installed in 2025
If your qualifying system was installed and placed in service by December 31, 2025, the credit belongs on your 2025 federal return. Under the rules that applied to 2025:
- The credit was 30% of qualifying costs.
- Qualifying heat pumps were eligible for up to $2,000 per year.
- Qualifying central air conditioners were capped at $600.
Eligibility depended on the equipment meeting specific efficiency requirements, so not every 2025 installation qualified. The credit is reported on IRS Form 5695 with your return.
Already filed without it?
If you installed qualifying equipment in 2025 and did not claim the credit, talk to your tax preparer about whether an amended return makes sense for you.
Paperwork
Documents to Gather for a 2025 Installation
Your tax professional will likely ask for some or all of the following. Reliance Air customers can call us for copies of installation records.
- Final paid invoice with equipment and labor broken out
- Installation date on the invoice or permit
- Indoor and outdoor model numbers
- Serial numbers for each component
- The matched system's efficiency certificate
- Manufacturer's certification that the equipment qualified
State Level
Florida HVAC Rebates and State Incentives
Florida does not have a state personal income tax, so there is no state income tax credit for HVAC to fall back on. That shifts attention to two other sources.
Utility rebate programs
Some Florida electric utilities offer rebates or incentives for higher-efficiency cooling equipment, duct repairs, or home energy checks. Programs, eligibility rules, and amounts differ by utility and change over time, and some require steps before installation. Check your electric company's website for current residential programs, or ask us to help you confirm requirements while we prepare your estimate.
Manufacturer promotions
Equipment makers periodically run promotions such as rebates or extended warranty offers on qualifying systems. These change throughout the year. Our current specials page lists the offers we can honor right now, including rebates on qualifying high-efficiency replacements and warranty promotions on qualifying Daikin units.
2025 vs. 2026 Installations at a Glance
| Question | Installed in 2025 | Installed in 2026 |
|---|---|---|
| Federal 25C credit available? | Yes, if equipment qualified | No |
| Where it is claimed | 2025 federal return | Not applicable |
| Florida state income tax credit | None | None |
| Utility rebates | Depended on utility program | Check your utility's current program |
| Manufacturer promotions | Varied by season | See current offers |
Still Worth It?
How to Lower the Cost of a 2026 Upgrade
Losing the credit changes the math, but it does not erase the reasons to upgrade. In Florida's long cooling season, a properly sized, efficient system still trims monthly electric bills and controls humidity better than a tired one. Our guide to SEER2 efficiency ratings helps you judge how much efficiency is worth paying for, and what drives AC replacement cost in Sarasota explains the pricing factors.
Spread the cost
For many families, monthly payments matter more than a one-time credit. Through our HVAC financing options with GreenSky, FTL Finance, and Wisetack, qualified buyers can access promotional 0% APR periods, and pre-qualification uses a soft credit pull. All financing is subject to credit approval, and terms vary by lender.
Don't replace by default
If your system is repairable and not near the end of its life, a repair may be the better value now that the credit is gone. Our repair or replace guide walks through the decision, and a heat pump can still be a strong choice in our mild winters, as covered in heat pump vs. AC.
Ready to price it out? Call (941) 417-4848 for a free in-home estimate on a new system.
Common Questions
Questions Readers Ask
Can I get a tax credit for a new AC installed in 2026?
Not through the federal 25C Energy Efficient Home Improvement Credit. Federal legislation enacted in July 2025 ended that credit for property placed in service after December 31, 2025. Florida has no state income tax, so there is no state credit either. Check utility rebates and manufacturer promotions instead, and confirm your situation with a tax professional.
What if my HVAC system was installed in late 2025?
If the qualifying equipment was placed in service by December 31, 2025, it may be eligible on your 2025 federal return: 30% of qualifying costs, up to $2,000 for qualifying heat pumps or $600 for qualifying central air conditioners. The credit is reported on IRS Form 5695. A tax professional can confirm eligibility and whether an amended return is needed.
Does the heat pump tax credit still exist?
The 25C credit that covered qualifying heat pumps ended for systems placed in service after December 31, 2025. Heat pumps installed in 2026 do not qualify. Heat pumps remain a popular choice in Southwest Florida because they heat efficiently in our mild winters, and utility programs or manufacturer promotions may still help offset the cost.
Are there Florida HVAC rebates in 2026?
Some Florida electric utilities offer incentive programs for efficient cooling equipment or related home improvements, but details vary by utility and change over time. Some programs require an inspection or approval before installation. Check your utility's website before you buy, and ask your contractor to confirm the equipment meets the program's requirements.
Is upgrading my AC still worth it without the tax credit?
It depends on your current system's age, condition, and repair history. A failing or very inefficient system still costs you in electric bills, repairs, and comfort. If your system is healthy, a repair may be the better value. Financing with promotional 0% APR periods can make a needed upgrade manageable for qualified buyers.
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