If you are budgeting for a new furnace, air conditioner or heat pump this fall, there is one change you need to know about before you plan around any number you have read. Here is where Michigan HVAC rebates stand in 2026.
The Energy Efficient Home Improvement Credit, Section 25C, expired on December 31, 2025. The Residential Clean Energy Credit, Section 25D, which covered geothermal and solar, expired on the same date. Both were terminated by the One Big Beautiful Bill Act signed in July 2025.
For HVAC equipment placed in service in 2026, neither credit is available. With 25C expired, what remains are state, utility and manufacturer programs.
This is worth stating plainly because a great deal of HVAC content online has not been updated. Search for an HVAC tax credit 2026 and you will still find articles, calculators and manufacturer pages describing a $2,000 heat pump credit and a $3,200 annual cap as though they are current. They are not.
Two clarifications that come up constantly:
If your qualifying system was installed and placed in service on or before December 31, 2025, you may still claim the credit on your 2025 federal return. Keep the invoice and the manufacturer certification. The IRS page on the Energy Efficient Home Improvement Credit lists the requirements.
The IRS used the placed in service date, not the purchase date. Equipment bought in December 2025 and installed in January 2026 did not qualify.
We are an HVAC company, not a tax firm. For anything specific to your return, talk to a tax professional.
The federal layer is gone. The state and utility layers are not, and that is where Michigan HVAC rebates still come from.
Consumers Energy serves most of Southwest Michigan and runs residential efficiency programs that have historically included rebates for high-efficiency furnaces, air conditioners, heat pumps, smart thermostats, insulation and home energy assessments.
DTE Energy runs a comparable program in the areas it serves.
Both set their own amounts, equipment requirements and application windows, and both revise them by program year. Some require the work to be performed by a participating contractor and the application submitted within a set number of days after installation.
Because terms change, the reliable move is to check the current program on your utility’s site or by phone before you sign anything, rather than relying on a figure from an article.
Michigan has administered the federal Home Energy Rebate programs, HEAR and HOMES, through EGLE under the Michigan Home Energy Rebates umbrella. These are income-qualified, with amounts tied to household income relative to area median income.
The 2025–26 program year closed on June 30, 2026. Whether and how the program continues is something to verify directly with the state rather than assume, since availability, funding and intake status have shifted more than once.
Michigan Saves, the state’s green bank, offers low-interest financing for home energy improvements through a network of authorized contractors. That is financing rather than a rebate, but on a large project it can matter as much.
Equipment manufacturers run their own seasonal rebate promotions independent of any government program. These come and go, they are tied to specific model families, and they are usually applied at the time of purchase.
We carry Frigidaire, Gibson, Amana and Goodman equipment, and we will tell you what is actually running when you are getting a quote. Current offers are on our promotions page.
The end of the federal credits does not change the underlying reasons to replace failing or inefficient equipment.
A furnace running at 70 percent AFUE costs more every month than one above 90 percent, and that accumulates across a Michigan heating season whether or not a credit exists. An air conditioner that needs refrigerant every summer is spending your money continuously. A system that is sized wrong delivers poor comfort regardless of what incentives were available the year it went in.
What changed is the timing argument. There is no longer a deadline pushing you to install this year rather than next. The decision goes back to the condition of your equipment and what it costs you.
For most homeowners, financing now matters more to the monthly picture than Michigan HVAC rebates do. We offer financing options with approved credit and walk through them in plain language, which we cover in detail in HVAC financing: how to budget for a new system.
The most useful thing you can do is get an actual quote for your actual house. A load calculation, real equipment options and honest numbers give you something to plan around. Replacement estimates are free, and we will tell you which Michigan HVAC rebates apply to the equipment in your quote.
J&J has served Battle Creek, Athens, East Leroy and the surrounding communities for over 50 years.
No. The Section 25C Energy Efficient Home Improvement Credit expired on December 31, 2025. Equipment placed in service in 2026 does not qualify.
If it was placed in service on or before December 31, 2025 and met the requirements, it may be claimable on your 2025 return. Keep your documentation and confirm with a tax professional.
Both utilities run their own residential efficiency programs, separate from the federal credits. Amounts and requirements change by program year, so check current terms with your utility before planning around a specific figure. We track the Michigan HVAC rebates that apply to our area on our rebates page.
Planning a replacement this year? Call J&J at (269) 965-1627 or schedule a free estimate today.
9000 M-66 South • East Leroy, MI 49051
(269) 965-1627
Monday - Friday: 8:00am - 5:00pm
