What HVAC rebates are available in Sacramento in 2026?
For 2026 installs, the live money is SMUD heat-pump rebates (quoted at the estimate). The federal §25C tax credit is not allowed for equipment placed in service after December 31, 2025. Income-qualified California electrification rebates may still apply — we only include open programs on the quote.
Sacramento homeowners installing qualifying HVAC equipment in 2026 should budget utility rebates, not a federal §25C credit. Exact SMUD amounts change — we'll quote the current program values at the time of your install.
SMUD heat-pump rebates. SMUD offers rebates for qualifying ducted heat-pump and heat-pump water-heater installations. Historically those residential ducted heat-pump rebates have landed in the $1,500 to $3,000 range; treat that as a range, not a guarantee. Rebates are paid after installation upon submission of AHRI-matched equipment documentation and proof of installation by a SMUD-certified contractor. SMUD also runs periodic rebates on qualifying smart thermostats, ductless mini-splits, and duct sealing. Confirm current figures at smud.org before you sign.
Federal §25C Energy Efficient Home Improvement Credit. Public Law 119-21 ended §25C for property placed in service after December 31, 2025. A heat pump or heat-pump water heater installed in 2026 does not qualify. Equipment placed in service in 2025 may still belong on a 2025 return. Do not stack a $2,000 federal credit into a 2026 replacement quote. For a 2026 install the federal amount is $0.
Income-qualified California electrification rebates. Point-of-sale programs for income-qualified households still roll out through the California Energy Commission. Eligibility, amounts, and stacking against SMUD change. We only include a program on the written quote when it is open on the quote date.
We'll build the specific rebate stack into the written quote so the net cost is clear before you sign anything.