Duct and HVAC Rebates in 2026

Are federal tax credits still available in 2026?

No, not for equipment placed in service in 2026. The IRS page for the Energy Efficient Home Improvement Credit (25C) says the credit is allowed for qualifying property placed in service on or after January 1, 2023, "and before December 31, 2025." The Residential Clean Energy Credit (25D) page says "The credit is not available for any property placed in service after December 31, 2025."

That retires the old 25C limits: $1,200 a year for most items, up to $600 per item for central A/C and furnaces, and a separate $2,000 a year for heat pumps. If a heat pump or A/C went in during 2025, that's a question for a tax professional, not a contractor's estimate.

What happened to the state heat pump rebates in 2026?

The two big state-run heat pump programs are fully reserved. TECH Clean California posted on November 14, 2025 that its single-family heat pump HVAC incentives "are fully reserved and not accepting new reservations." TECH is administered by Energy Solutions under a contract with SCE, with CPUC oversight.

HEEHRA, the federal Home Energy Rebates money that the CEC (the state's energy agency) manages and has been distributing through TECH, followed. The HEEHRA status page says single-family rebates were fully reserved for projects statewide as of February 24, 2026, and multifamily rebates as of September 1, 2026. Those rebates had offered $8,000 to single-family households below 80 percent of area median income and $4,000 between 80 and 150 percent. The HOMES program and any later HEEHRA phase could not be confirmed from a primary source on the date checked, so Valley Home Ducts does not describe them as open.

Do utilities still offer duct rebates in 2026?

Some do, and the answer depends on your utility. In Sacramento, SMUD's heating and cooling rebates list a gas-to-electric heat pump rebate of $3,000 for a variable-stage system or $2,000 for a two-stage system (15.2 SEER2 minimum), and $1,000 for an electric-to-electric multi-stage upgrade. Installers must be in SMUD's Contractor Network, and SMUD says "Rebates are subject to availability of funding."

SMUD ties the money to the code: proof is the rater's CF3R certificate (SMUD's wording is "HERS CF3R"), and any new ductwork must be insulated to R-8 or higher. SMUD's Seal and Insulate offer pays up to $3,000 for work that includes installing and sealing new ductwork and deep-burying ducts, through a Home Performance Program contractor.

Outside SMUD territory, Valley Home Ducts could not confirm a current duct rebate from PG&E, Modesto Irrigation District or Turlock Irrigation District. That is not proof none exists; check your utility's current rebate page yourself before counting on one.

How do you check a 2026 rebate before signing?

Check the program's own page on the day you sign, and save a copy. Four things to confirm:

1. Status. Look for words like "fully reserved," "waitlist" or "subject to availability of funding."
2. Contractor rules. SMUD's programs require a contractor from its own network; a rebate can vanish if the installer isn't on the list.
3. Equipment and paperwork. Note the efficiency minimum (such as SMUD's 15.2 SEER2 for two-stage), the Title 24 verification certificate, and the duct insulation level.
4. Timing. For tax credits, the IRS test is the date the property was placed in service; for state codes, it's the permit application date.

Check the contractor too. The CSLB's license lookup searches by license number, business name or personnel name, and heating and air-conditioning work falls under the C-20 classification.

What should a bid say about incentives in 2026?

A sound bid lists the price before incentives, names each incentive by program, and makes clear who applies for it and what happens if it doesn't come through. If the bid nets out a rebate that is fully reserved, or a federal credit for a 2026 install, ask the contractor to show the program page that supports it.

The bid should also show the Title 24 work, because no rebate replaces it: duct sealing to 10% total leakage or 7% to outside on a changeout, verified by a state-certified ECC-Rater, under the 2025 code text for permits applied for in 2026. The changeout rules page and the rater visit page explain those line items.

Where duct sealing meets gas appliances, DOE Building America wants combustion safety checked both ahead of the sealing and once it's finished; that belongs on the bid as its own line. If you're unsure, call a licensed technician.

Is duct work worth doing without a rebate?

For leaky attic ducts, the case doesn't rest on a rebate. ENERGY STAR's duct sealing page says about 20 to 30 percent of the air moving through a typical duct system is lost, and its flyer says leaky ducts can cut heating and cooling efficiency by as much as 20 percent. In a Valley attic, which DOE Building America says "can easily reach 130°F or 140°F" on hot days, that loss lands in the worst possible place.

Sealing comes first, with mastic or UL 181-listed foil tape and never cloth duct tape; see mastic vs foil tape. If you're weighing a ductless system for an addition or garage instead, the mini-split comparison covers when that fits.

2026 money status (checked October 28, 2026)

• Dec 31, 2025federal credit cutoff, by service dateIRS
• Nov 14, 2025TECH single-family heat pump incentives fully reservedTECH Clean California
• Feb 24, 2026HEEHRA single-family rebates fully reservedTECH Clean California
• $3,000SMUD Seal and Insulate maximum, subject to fundingSMUD

Questions from the field

Related pages

• FOptions and hiring
• F2Questions to ask a duct contractor
• B2Title 24 changeout rules
• CSealing and insulating ducts