If you searched for the HVAC tax credit in 2026 and got a confusing mix of answers, you are not alone. The short version is this: the federal credit many homeowners planned around expired at the end of 2025. That’s frustrating, especially if your AC is aging and you were counting on it. However, Jacksonville homeowners still have real options on the table, and we want to help you understand what changed, what stayed, and what to do next.
What Happened to the HVAC Tax Credit in 2026?
The federal Energy Efficient Home Improvement Credit, known as Section 25C, expired on December 31, 2025. That means HVAC equipment installed in 2026 or later does not qualify for the federal tax credit, regardless of efficiency rating or how new the equipment is.
Congress created the credit through the Inflation Reduction Act in 2022 and set it to run through 2032. Legislation signed in July 2025 accelerated the sunset by seven years, ending the credit at the close of 2025. If you have seen contractors or websites still advertising a federal HVAC tax credit for 2026, that information is out of date. The IRS confirms the termination on its official credit page and in the Form 5695 instructions.
Can You Still Claim the Credit If You Installed in 2025?
Yes, if your qualifying HVAC system started running on or before December 31, 2025, you can still claim the credit on your 2025 federal tax return this spring. The controlling date is when the system was operational, not when you paid for it or when you file. You would use IRS Form 5695 attached to your regular return.
This is the piece most Florida homeowners are missing right now. Every install completed by the end of 2025 is still worth up to $2,000 for a qualifying heat pump, or up to $1,200 for other qualifying energy-efficient upgrades, per the credit’s annual caps. If you or a family member had work done last year, dig up the invoices and talk to your tax preparer before you file. You cannot claim it retroactively next year, so the 2025 return filing is the only shot.
What Should Florida Homeowners Do in 2026?
Focus on state and local incentives that are still active, and plan HVAC purchases around what your utility and manufacturer are offering. The federal credit is gone, but Florida homeowners still have real money on the table if they know where to look.
- Utility rebates from JEA (or FPL, Duke Energy, or your local co-op depending on where in Northeast Florida you live)
- Manufacturer rebates from brands like Trane, Carrier, or Lennox when they run seasonal promotions
- State-administered IRA rebate programs (HOMES and HEAR/HEEHRA), which survived the federal credit expiration and are rolling out through state energy offices
- ENERGY STAR instant discounts on select products at Lowe’s and Home Depot in the JEA service area
Not all of these will fit every household. What we recommend is that you gather quotes with the rebates already factored in, so you see the real net number, not a base price you have to chase discounts on later.
JEA Rebates: What Jacksonville Homeowners Can Still Get
JEA offers up to $200 for a qualifying ENERGY STAR central air conditioner, heat pump, or ductless mini-split, plus an extra $50 for a smart thermostat installed at the same time. The program covers equipment you purchase and install between October 1, 2025 and September 30, 2026, with rebate applications due within 90 days of install and no later than October 10, 2026.
To qualify, your new system needs to meet minimum efficiency ratings (SEER2, EER2, and HSPF2 for heat pumps) and you need to be a JEA residential electric customer. Your contractor should know how to fill out the rebate paperwork and can help you make sure the system you are buying meets the JEA program requirements before you sign anything.
JEA also offers a $200 rebate for attic insulation and a rebate for HVAC tune-ups, both of which help lower your utility bill on top of the incentive. For Jacksonville business owners, JEA runs a separate rebate program for commercial equipment that runs through August 31, 2026 with enhanced payouts.
Watch Out for Contractors Advertising the Expired Credit
Some HVAC contractors are still advertising the federal tax credit as if it were still available in 2026, either from outdated marketing or a lack of updates. If a quote mentions the federal credit as part of your savings, ask two questions: “What date did the credit expire?” and “What is the actual net price with just the state and utility rebates applied?”
An honest contractor will not tie your quote to a credit that no longer exists. This matters more than ever now, because tariffs and refrigerant transitions have already pushed AC prices higher in 2026. If you’d like our take on why quotes are jumping, we broke it down in our post on AC installation cost in Florida.
What About the Cost Without the Credit?
A new AC or heat pump in Jacksonville can still be affordable in 2026, even without the federal credit. JEA rebates, manufacturer promotions, and financing all help bring the number down. And there is a real cost to waiting on an aging system: rising repair bills, higher energy usage, and the risk of an insurance non-renewal if a 4-point inspection flags your AC.
For retirees on a fixed income, the natural instinct is to wait and hope for the best. That works right up until the system fails during peak summer, at which point emergency service and rushed decisions cost more than a planned replacement. If your AC is over 10 years old, get an honest assessment now so you know what to plan for. Our team can walk through the numbers with you, no pressure, and help you compare a Jacksonville AC replacement against continued repairs on the old system.
If replacement makes sense and cash flow is the concern, we offer HVAC financing in Jacksonville that breaks the total into monthly payments most budgets can absorb. Combined with JEA rebates, a new efficient system often pays for itself faster than most homeowners expect through the energy savings alone.
We’re Here to Help You Make Sense of It
If you’d like an honest look at your options with all the current rebates on the table, we’re happy to help. Reach out at (904) 982-9731 or through our contact page. Florida Air Flow is a local Jacksonville team. We will lay out the real numbers, including any rebates you qualify for, and never quote you a credit that no longer exists. HVAC pricing is confusing enough without added surprises, and you deserve straight answers.