2026 Quick Summary: Maximum Available Savings
Utility Rebates
Up to $600
Oncor, CoServ, others
Federal Tax Credit
Up to $2,000
Heat pumps get separate limit
Manufacturer Rebates
$150-$1,665
Seasonal promotions
Maximum potential savings: $4,265+ by stacking all available programs on a qualifying heat pump system.
Oncor Rebate Programs
Oncor serves most of North Texas including Frisco, Plano, McKinney, Allen, and surrounding areas. They offer the most comprehensive rebate programs for HVAC equipment.
| Equipment | Rebate | Notes |
|---|---|---|
| Central AC (SEER2 16-16.9) | $400 | Must replace existing unit |
| Central AC (SEER2 17+) | $550 | Premium tier rebate |
| Heat Pump (SEER2 16-16.9) | $425 | Heating and cooling credit |
| Heat Pump (SEER2 17+) | $600 | Maximum Oncor rebate |
| Smart Thermostat | $75 | ENERGY STAR certified required |
| Duct Sealing (Aeroseal) | $250 | Licensed contractor required |
| Attic Insulation | $0.10/sq ft | R-38 or higher, max $300 |
| Window AC (CEER 12+) | $25 | ENERGY STAR certified |
Pro Tip: Oncor offers tiered rebates—SEER2 17+ systems get $150 more than SEER2 16 systems. If you're close to the threshold, upgrading to the higher tier often pays for itself through the larger rebate.
CoServ Rebate Programs
CoServ serves parts of Denton County, Collin County, and surrounding areas. Their electric cooperative model offers competitive rebates.
| Equipment | Rebate | Notes |
|---|---|---|
| Central AC (SEER2 16+) | $400 | Electric accounts only |
| Heat Pump (SEER2 16+) | $500 | Includes dual fuel systems |
| Heat Pump Water Heater | $400 | UEF 2.0 or higher |
| Smart Thermostat | $75 | WiFi connected required |
| Pool Pump (Variable Speed) | $200 | ENERGY STAR certified |
| Whole House Fan | $50 | 2,500+ CFM capacity |
Other North Texas Utility Rebates
Retail electric providers (REPs) like TXU Energy and Green Mountain Energy offer additional rebates on top of transmission company programs.
TXU Energy
- Central AC (SEER2 16+) $200
- Heat Pump (SEER2 16+) $300
- Smart Thermostat $100
Green Mountain Energy
- High-Efficiency HVAC $200
- Smart Thermostat $50
*Note: REP rebates may be in addition to or instead of Oncor/CoServ rebates depending on equipment. Verify stacking eligibility before purchase.
Federal Tax Credits (Section 25C)
The Inflation Reduction Act extended and expanded energy efficiency tax credits through 2032. These are dollar-for-dollar reductions to your tax liability—much more valuable than deductions.
| Equipment | Credit | Requirement | Annual Limit |
|---|---|---|---|
| Central Air Conditioner | $600 | SEER2 16+, EER2 12+ | $600 |
| Heat Pump (Ducted) | $2,000 | CEE Highest Tier | $2,000 (separate) |
| Heat Pump (Ductless Mini-Split) | $2,000 | SEER2 16+, HSPF2 9+ | $2,000 (separate) |
| Gas Furnace | $600 | 97% AFUE or higher | $600 |
| Boiler | $600 | 95% AFUE or higher | $600 |
| Smart Thermostat | $150 | ENERGY STAR certified | $1,200 combined |
| Heat Pump Water Heater | $2,000 | UEF 2.2+, NEEA Tier 3 | $2,000 (separate) |
| Electrical Panel Upgrade | $600 | 200A for heat pump install | $1,200 combined |
| Insulation/Air Sealing | 30% of cost | Meets IECC standards | $1,200 combined |
Understanding the Annual Limits
- • $1,200 combined limit: AC, furnace, insulation, windows, electrical panel share this cap
- • $2,000 separate limit: Heat pumps (HVAC and water heater) have their own additional limit
- • Strategy: Install heat pump in year 1, other upgrades in year 2 to maximize credits
IRA Rebate Programs (Coming to Texas)
The Inflation Reduction Act created two major rebate programs. Texas has received funding but has not yet launched these programs.
HOMES Program
Whole-home energy savings rebates based on measured or modeled energy reduction.
| Income Level | 10-20% Savings | 35%+ Savings |
|---|---|---|
| Moderate Income (80-150% AMI) | Up to $2,000 | Up to $4,000 |
| Low Income (<80% AMI) | Up to $4,000 | Up to $8,000 |
HEEHR Program
Point-of-sale rebates for low-income households (below 80% AMI).
| Equipment | Rebate |
|---|---|
| Heat Pump HVAC | Up to $8,000 |
| Heat Pump Water Heater | Up to $1,750 |
| Electrical Panel Upgrade | Up to $4,000 |
| Electric Wiring | Up to $2,500 |
| Insulation/Air Sealing | Up to $1,600 |
Texas Status: The state received $340 million in HOMES funding and $267 million in HEEHR funding. Program launch is pending. Monitor SECO's website for updates.
Real North Texas Savings Examples
Here's what actual rebate stacking looks like on common installations we perform in the DFW area.
Heat Pump Full System Replacement
3-ton Carrier Infinity with Greenspeed
Base Cost
$16,500
Oncor Rebate
-$600
Federal Credit
-$2,000
Manufacturer
-$500
Total Savings
$3,100
Your Net Cost
$13,400
AC + Furnace Replacement
4-ton Trane XV18 + S9V2 Furnace
Base Cost
$14,200
Oncor Rebate
-$550
Federal Credit
-$1,200
Manufacturer
-$400
Total Savings
$2,150
Your Net Cost
$12,050
Mini-Split Heat Pump System
Mitsubishi MXZ-4C36NA Multi-Zone
Base Cost
$12,800
Oncor Rebate
-$600
Federal Credit
-$2,000
Manufacturer
-$300
Total Savings
$2,900
Your Net Cost
$9,900
Budget-Friendly AC Only
3.5-ton Goodman GSXC18
Base Cost
$7,200
Oncor Rebate
-$400
Federal Credit
-$600
Manufacturer
-$0
Total Savings
$1,000
Your Net Cost
$6,200
6 Rebate Mistakes That Cost You Money
I've seen homeowners lose hundreds (sometimes thousands) by making these avoidable errors.
Missing the deadline
Costs: $400-$600Prevention: Submit utility rebate within 90 days of installation
Wrong efficiency tier
Costs: $200-$1,400Prevention: Verify SEER2/EER2 ratings BEFORE purchase, not after
Missing AHRI certificate
Costs: $600-$2,000Prevention: Request AHRI from contractor before final payment
Tax credit vs deduction confusion
Costs: VariesPrevention: Credits reduce taxes owed dollar-for-dollar, deductions only reduce taxable income
Not stacking programs
Costs: $500-$2,000Prevention: Utility rebates + federal credits can be combined
DIY installation
Costs: All rebatesPrevention: Most programs require licensed contractor installation
How to Apply: Step-by-Step Process
Follow this process to maximize your rebates and avoid leaving money on the table.
Verify Your Utility Provider
Different utilities have different rebate programs. Oncor serves most of North Texas, but CoServ, TXU, and others have their own programs. Check your bill to confirm.
Confirm Equipment Eligibility
Get the exact model numbers and efficiency ratings BEFORE purchase. SEER2 16+ is minimum for most rebates, but higher efficiency = higher rebates.
Get Multiple Quotes
Compare at least 3 contractors. Ask each about their experience with rebate paperwork and if they provide AHRI certificates.
Keep All Documentation
Save: (1) Purchase receipt with model numbers, (2) AHRI certificate, (3) Contractor invoice, (4) Installation completion certificate, (5) Photos of equipment labels.
Submit Utility Rebate First
Most utilities require submission within 60-90 days of installation. Use their online portal for fastest processing.
Track Your Submission
Utility rebates typically process in 6-8 weeks. Keep confirmation numbers and follow up if no payment after 10 weeks.
Claim Federal Tax Credit
File IRS Form 5695 with your annual tax return. Keep documentation for 3 years in case of audit.
Documentation Checklist
Keep all of these documents organized—you'll need different ones for different rebate programs.
| Document | Required For | Purpose |
|---|---|---|
| AHRI Certificate | All | Proves matched system efficiency ratings |
| Contractor Invoice | All | Shows itemized costs and model numbers |
| Equipment Labels Photo | Utility | Verifies installed model numbers |
| Permit Final Inspection | Some utilities | Proves code-compliant installation |
| IRS Form 5695 | Federal credit | Required attachment to tax return |
| Manufacturer Warranty Card | Manufacturer | Needed for manufacturer rebates |
| Energy Audit Report | HOMES | Shows pre/post energy savings |
Tip: Create a folder (physical or digital) for your HVAC installation. Take photos of equipment labels before the installation is complete—it's much harder to access them later.
Best Times to Buy: Manufacturer Rebate Seasons
Manufacturer rebates are seasonal. Here's what to expect throughout the year.
| Season | Typical Rebates | Notes |
|---|---|---|
| Spring (March-May) | $300-$1,200 | Best selection, contractors not overwhelmed |
| Summer (June-August) | $100-$500 | High demand, fewer promotions |
| Fall (September-November) | $400-$1,500 | End of cooling season closeouts |
| Winter (December-February) | $200-$800 | Slow season, negotiating power |
Best Time to Buy
Fall (September-November) typically offers the best combination of rebates, contractor availability, and equipment selection. You're not in emergency mode and can negotiate.
Worst Time to Buy
July during a heat wave. Contractors are overwhelmed, manufacturers know demand is high, and you have no negotiating leverage. Emergency replacements almost never maximize rebates.
Current Manufacturer Rebates (January 2026)
These promotions change every 2-3 months. Ask your contractor what's currently available.
Carrier Cool Cash
- • Infinity System + Greenspeed: Up to $1,665
- • Infinity System: Up to $1,200
- • Performance Series: Up to $500
- • Comfort Series: Up to $150
Trane Rebates
- • XV System: Up to $1,200
- • XR System: Up to $800
- • XL System: Up to $600
- • CleanEffects air cleaner: $200
Lennox Rebates
- • Ultimate Comfort System: Up to $1,600
- • XC25/XP25 Heat Pump: Up to $1,200
- • XC21/XP21 Systems: Up to $800
- • Merit Series: Up to $400
Rheem & Goodman
- • Rheem Prestige Series: Up to $500
- • Rheem Classic Plus: Up to $300
- • Goodman GSXC18: $200-$400
- • Amana AVXC20: Up to $500
*Rebate amounts and availability vary by region and dealer. Confirm current promotions with your contractor.
What Is an AHRI Certificate (And Why You Need It)
The AHRI certificate is the most important document for HVAC rebates. Here's what it proves and why it matters.
What AHRI Certification Proves
- Matched System: Your outdoor condenser and indoor evaporator coil are tested together and certified to achieve the stated efficiency.
- Verified Ratings: SEER2, EER2, and HSPF2 ratings are third-party verified, not just manufacturer claims.
- Rebate Eligibility: Without AHRI certification, utilities and IRS may reject your rebate/credit application.
Red Flag: No AHRI Certificate
If your contractor can't or won't provide an AHRI certificate, they may have:
- • Installed mismatched equipment (common with "gray market" parts)
- • Used a coil from a different manufacturer than the condenser
- • Installed equipment that doesn't meet stated efficiency ratings
Verify your system at ahridirectory.org using the model numbers from your equipment.