What the 25C Credit Was
Section 25C gave homeowners a credit of 30 percent of heat pump cost, capped per project. It was terminated for equipment placed in service after December 31, 2025 — so it does not apply to new 2026 installs.
2026 Tax Credit Guide
IRA Heat Pump Tax Credit in 2026: What Sacramento Homeowners Need to Know
Short answer: the federal 25C heat pump credit ended for equipment placed in service after December 31, 2025 — 2026 installs do not qualify. The good news for Sacramento: SMUD, TECH Clean CA, and state GoGreen programs are still active, and Fresh Air runs a free rebate analysis with every estimate.
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IRA Heat Pump Tax Credit in 2026 for Sacramento Homeowners
Fresh Air Heating and Air has helped Sacramento homeowners navigate heat pump incentives since 2010. The federal landscape changed at the end of 2025 — here is the honest picture. We give free in-home estimates. Call (916) 416-8181 to talk through your options.
2025 Installs Can Still File
If your qualifying unit was placed in service on or before December 31, 2025, claim it on your 2025 return with IRS Form 5695. Keep your itemized invoice and the manufacturer certification.
What Still Works in 2026
SMUD electrification rebates, TECH Clean California, and the state GoGreen Home program remain active. Amounts change by program year — we map what fits your address before your estimate.
How Fresh Air Helps You Capture What Is Still Available
- Free rebate analysis with every in-home estimate — only programs that are active right now.
- Quotes flag which units meet current SMUD and TECH Clean CA efficiency tiers.
- We provide itemized invoices and handle the rebate paperwork.
- Milestone billing so you pay as work is done.
- About 48-hour typical install from permit to startup.
- Serving Sacramento, Elk Grove, Folsom, Roseville, Rocklin, and more.
- Licensed CSLB number 945361, insured, family-run since 2010.
- Second-opinion service if another quote seems off.
Key Facts About Section 25C in 2026
The IRA originally set 25C to run through 2032, but Congress terminated it in 2025: the credit ended for equipment placed in service after December 31, 2025. A heat pump installed in 2026 does not earn the federal credit, and it was never refundable or carryable in the first place.
If a contractor is still building the federal credit into a 2026 quote, treat that as a red flag — the pitch is out of date. Check irs.gov or ask your tax advisor to confirm the rules for your own return. Fresh Air quotes net prices using only the utility and state programs that are actually active for your address.
IRA Heat Pump Tax Credit 2026 Sacramento FAQ
Is the IRA heat pump credit still active in 2026?
No. The federal 25C credit ended for equipment placed in service after December 31, 2025. Installs completed in 2026 do not qualify. Check irs.gov or your tax advisor for your own situation.
I installed my heat pump in 2025 — can I still claim it?
If your qualifying heat pump was placed in service on or before December 31, 2025, you claim it on your 2025 tax return using IRS Form 5695. You need an itemized invoice and the manufacturer certification.
What incentives still work for a 2026 Sacramento install?
Utility and state programs remain: SMUD electrification rebates, TECH Clean California, and the state GoGreen Home program. Amounts change by program year — Fresh Air runs a free rebate analysis with every estimate.
What if a contractor promises me the federal tax credit in 2026?
Treat it as a red flag. A quote that leans on an expired federal credit is working from an outdated pitch. Fresh Air quotes real net prices using only programs that are currently active.
Get a Free Estimate and an Honest Rebate Analysis
Call (916) 416-8181 or visit our contact page. Fresh Air is licensed CSLB number 945361 and has served Sacramento homes since 2010. We quote net prices using only incentive programs that are active right now. We use milestone billing so you pay as work is done.