Federal 25C Tax Credit, Expired
The federal HVAC tax credit ended December 31, 2025. You can still claim it on your 2025 return if you had a qualifying setup last year. New 2026 setups do not qualify.
California HVAC Incentives: 2026 Update
The federal HVAC tax credit ended December 31, 2025. State HEEHRA and TECH funds are gone. Two options remain in 2026. SMUD rebates and GoGreen loans can still save you money. Fresh Air tells you what applies at the free estimate.

The landscape changed in 2026. The federal 25C tax credit ended December 31, 2025. California HEEHRA rebate funds are fully reserved. TECH Clean California single-family funds are also gone. Two options remain active for most Sacramento homeowners. SMUD rebates apply if you are in SMUD territory. GoGreen Home loans are open statewide. Fresh Air has set up 900+ units since 2009. We track these programs. We find your active options at the free estimate before you spend a dollar.
The federal HVAC tax credit ended December 31, 2025. You can still claim it on your 2025 return if you had a qualifying setup last year. New 2026 setups do not qualify.
SMUD customers can get heat pump rebates in 2026. SMUD raised amounts in February 2026. Check smud.org for current totals. PG&E customers are in a different program.
GoGreen Home connects California homeowners with low-interest loans for HVAC upgrades. It is not a rebate. It is a loan. It can cut the monthly cost of a $9,000 to $20,000 heat pump setup by a lot.
SMUD customers have the clearest path in 2026. SMUD rebates work at the utility level. They do not depend on federal or state programs. You can pair a SMUD rebate with a GoGreen loan. That lowers both the upfront and monthly cost of a heat pump setup. Fresh Air finds this stack at the free estimate and helps you apply.
PG&E customers cannot use SMUD programs. PG&E runs its own rebate programs. Amounts vary and update often. GoGreen loans are open statewide for both SMUD and PG&E territory. California's energy code favors heat pumps more each year. The code pushes toward units that qualify for the most savings. We factor code needs into every setup we quote.
No. The 25C credit ended December 31, 2025. If you had a qualifying setup before that date, you may still claim it on your 2025 return. No new federal credit is open for 2026 setups as of this writing.
HEEHRA and TECH Clean California funds are fully reserved as of early 2026. Active options are SMUD rebates for SMUD territory and GoGreen loans statewide. HOMES rebate Phase II may open later in 2026 but is not open yet. Fresh Air tells you what applies to your address at the free estimate.
GoGreen connects you with lenders offering low or no-interest loans for heat pumps and energy upgrades. You apply through the GoGreen program. You pay back the loan over time. It is separate from any rebate. You can pair a GoGreen loan with a SMUD rebate to cut both the lump-sum and monthly cost.
Call Fresh Air Heating & Air at (916) 416-8181 or visit /contact/. We serve Sacramento, Elk Grove, Roseville, Folsom, and nearby areas. Free estimate. Licensed CSLB #945361. Family-run since 2009.