Are There Government or Tax Incentives Available for Upgrading to an Energy-Efficient Heating System?

Federal and state incentives for energy-efficient HVAC upgrades helped homeowners lower the cost of new systems for several years, but most of those programs expired at the end of 2025. While new legislation could eventually renew them, homeowners planning upgrades in 2026 and beyond should expect to pay full installation costs unless local utilities introduce new rebates.

Some manufacturers still offer exceptional rebates. For example, any purchasers upgrading to new Trane or Oncor units can potentially save thousands of dollars in instant rebates or local incentives from your electric company.

How HVAC Rebates Work and How to Find Them

Even though most federal tax credits for energy-efficient systems ended in 2025, rebates remain an important way to reduce upfront HVAC costs. Many manufacturers, distributors and local utility providers still offer limited-time incentives designed to promote energy efficiency.

Manufacturer Rebates
Companies like Trane, Lennox and Carrier frequently run seasonal promotions or factory rebates on qualifying models. These rebates are usually applied at the time of purchase through your HVAC contractor, but they may require online registration or proof of installation to claim.

Utility and Local Rebates
Some Texas electric providers occasionally offer rebates for installing high-efficiency equipment or smart thermostats that help manage peak demand. These programs change often, so it’s best to check your provider’s website or ask your HVAC technician about current offers before purchasing.

What to Ask Your HVAC Contractor
When getting estimates for a new system, ask:

·      Are there any active manufacturer or utility rebates for this model?

·      Will the contractor handle rebate paperwork or submission?

·      Is the system ENERGY STAR® certified or eligible for local efficiency incentives?

While these rebates are usually smaller than the federal programs that expired in 2025, they can still save homeowners hundreds of dollars and help offset the cost of upgrading to a modern, efficient system.

Should You Wait or Upgrade Now?

Although it’s not ideal to pay full price for HVAC replacement, there is at least one benefit to not having as many tax incentives available; you no longer need to wait to replace your system. Since you don’t have to worry about deadlines and maximizing credits for any particular tax year, you can just worry about upgrading your system when you need it.

If you’re having to pay for frequent repairs, or you’re frustrated by the high cost of heating your home with your current HVAC system, upgrading to an ENERGY STAR-certified system will reduce utility costs moving forward. Running a struggling system until it breaks down for good can result in years of expensive, subpar heating and cooling performance, and you run the risk of losing heating or cooling when you need it most.

Why take the risk or deal with the increased heating costs when you can save yourself the time and headache by scheduling a replacement consultation today?

Electric Company Incentives

Texas consumers have the unique opportunity to choose from a number of local electricity service providers. Although you can choose from different providers, all electricity is delivered by Oncor Electric Delivery, the company that owns the infrastructure in Arlington.

In many states, utilities have local monopolies, meaning homeowners don’t have a choice when it comes to their electricity providers. Some of the companies that serve Arlington and the surrounding areas offer unique incentives for certain HVAC system upgrades or the use of smart thermostats.

You should visit your electricity provider’s website and look up their incentives to see if you are eligible for additional rebates or incentives.

Get Advice From Local Arlington HVAC and Energy Efficiency Experts

Upgrading your water heater or heating solution can be a significant investment. Our HVAC technicians have extensive experience helping local HVAC replacement customers identify the best incentives for energy-efficient heating and cooling solutions. 

Give us a call at (817) 277-4493 if you want to learn more about potential incentives as well as ways you can improve home comfort and efficiency.