HVAC tax credit 2026: what you can still say in your ads

From 2023 to 2025, a lot of HVAC ads ran on one line: "Get up to $2,000 back with the federal tax credit." It worked, because it was true and it was a number.

For systems installed in 2026, it is not true. Some of those ads, landing pages and estimate templates are still out there. This post covers what the IRS says, where the other incentive programs stand, and what you can put in an ad instead. It is written for contractors deciding what their marketing says, not as tax advice. We are not tax advisers, and homeowners should talk to their own tax preparer.

Is there a federal HVAC tax credit in 2026?

No, not for systems installed in 2026. The IRS says the Energy Efficient Home Improvement Credit, section 25C, "will not be allowed for any property placed in service after December 31, 2025." The Residential Clean Energy Credit, section 25D, ended for expenditures made after the same date.

Both changes come from Public Law 119-21, signed July 4, 2025, which the IRS calls "the One, Big, Beautiful Bill" (IRS FAQs, FS-2025-05). The same FAQ says, for 25D, that when installation is completed after the deadline, the credit cannot be claimed.

What the credits used to be worth, from the IRS pages for 25C (last reviewed April 28, 2026) and 25D:

Can you still mention the tax credit in ads?

Only in a narrow, accurate way: for systems installed in 2025, the homeowner may be able to claim it on their 2025 return, and should ask their tax preparer. For anything installed in 2026, the answer is no, and an ad that implies otherwise is a false claim.

The IRS says homeowners can claim these credits "for the year when you make qualifying improvements" (IRS, Home energy tax credits). The 25C page adds a detail your office should know if a 2025 customer calls: "In 2025, for each item of qualifying property placed in service, no credit will be allowed unless the item was produced by a qualified manufacturer and the taxpayer reports the Qualified Manufacturer Identification Number (QMID)."

That is a customer service answer, not an ad. By September 2026, a message about 2025 installs does nothing to sell a new system. The practical move is to take the credit out of your marketing entirely.

The Federal Trade Commission's small business guide states the baseline: "Advertising must be truthful and non-deceptive; Advertisers must have evidence to back up their claims" (FTC). A tax credit claim on a 2026 heat pump install has no evidence behind it.

Why do homeowners still think the credit exists?

Because a lot of material from 2023 to 2025 still circulates: old ads, cost guides, manufacturer brochures and screenshots on social media. Even accurate pages can confuse, because "through December 31, 2025" reads like "this year" to someone skimming. Expect the question on estimates and have an answer ready.

For example, the ENERGY STAR federal tax credits page, when we checked it on September 30, 2026, said "Through December 31, 2025, federal income tax credits are available to homeowners" and "Save Up to $2,000 on Costs of Upgrading to Heat Pump Technology" (ENERGY STAR). That is accurate about 2025, but a homeowner scanning for "$2,000" may miss the date.

A script for your comfort advisor:

"That credit ended for systems installed after December 31, 2025. It still applies to some 2025 installs, which your tax preparer can confirm. For your system this year, here's what does apply: [utility rebate if you qualify], and the financing options on page 2."

Short, correct, and it moves straight to something real.

What happened to the Home Energy Rebates?

They still exist on paper and in some states in practice. The Department of Energy says "Home Energy Rebates are now available in select states" and tells people to contact their state or territory energy office for status and eligibility. Only advertise them where your state's program is live and you can take part.

The two programs, as the Department of Energy describes them:

• HOMES (Home Owner Managing Energy Savings): whole-home upgrades based on modeled energy savings, with "a minimum savings of 20%." Households "can save up to $8,000," and the DOE notes that grantees may increase rebates for households below 80% of area median income.
• HEEHR (High-Efficiency Electric Home Rebate): rebates for "electric heating and cooling upgrades," insulation, wiring and other items, where households "can save up to $14,000," offered "at point of sale either at retail outlets or through contractors."

These are rebates, not tax credits. They are run by each state, they often require approved contractors, and the rules differ by state. The DOE page does not list which states are live, so you have to check your own state energy office. If you cannot link to a live program page in your state, leave the Home Energy Rebates out of your ads.

How should you use utility rebates in HVAC ads?

Use a utility rebate only if the program is current, the equipment you are selling qualifies, and you are a participating contractor if the utility requires it. State what the utility says in its own words, link to the utility's page, and recheck every season, because amounts and rules change.

Houston is a good example. CenterPoint Energy says it "offers incentives that start at $200 and may increase, depending on your installation," that eligible equipment "starts at 15.2 SEER2," that "Central A/C, heat pumps and mini-split systems are all eligible," and that incentives "are applied directly to your installation invoice when you work with a participating contractor" (CenterPoint Energy).

That gives a Houston ad a true line: "CenterPoint incentives start at $200 on qualifying systems, applied to your invoice." It only works if you are a participating contractor and the system on the estimate meets 15.2 SEER2 or better. More on that market is on our Houston HVAC marketing page.

What can an HVAC ad say about incentives in 2026?

It can state live utility or state rebates you qualify for, in the program's own words, with a link. It can mention financing you actually offer. It cannot promise a federal tax credit on a 2026 install, invent a rebate amount, or imply a government program endorses your company.

One more rule we follow: nobody on our side writes a rebate or credit amount from memory. Every number in an ad comes from the program's own page, opened that season, and the landing page links to it.

What should replace the tax credit hook?

Real reasons a homeowner acts this season: an old system that is failing or expensive to run, comfort through a long summer, a verified local rebate, financing, and a clear, fast path to an in-home estimate. None of those expire on December 31.

The ad angles we use for replacement campaigns, with the credit removed:

1. Age and reliability. "Is your AC 12 or more years old?" Speaks to the homeowner already worried about the next breakdown.
2. Running cost. Talk about running cost using the homeowner's own bills and the SEER2 ratings on the estimate, not a savings figure invented for the ad.
3. Local rebate, if live. One line, the utility's own figure, the link.
4. Financing. "Financing available," with any specific terms disclosed properly. See HVAC financing marketing for the rules.
5. Speed. "Estimate this week, install next week" if your schedule supports it. If it does not, do not say it.

How do we handle incentives in your ads?

We audit your existing ads, landing pages and estimate templates for credit and rebate claims in week one, remove anything that is no longer true, and rebuild the offer around the replacement itself. Rebates only go in if we can link to a live program page and you confirm you participate.

We are new to the US market and have no US client results to share. What we can promise is process: every incentive claim is checked on the source page before it runs, and rechecked at the start of each season. Our AC replacement leads page shows how the rest of the offer is built. For heat pump specifics, including who still buys without the credit, read heat pump installation leads in 2026.

Sam

Co-founder. Audits, strategy and media buying

Sam runs every strategy call and buys every ad. Before going HVAC-only, he ran a performance marketing agency: SEO, Meta and Google ads, CRM automation.

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