Why it matters to you
Older ads and articles may still promise a federal credit on a new Houston heat pump or AC, so building a 2026 purchase around 25C is a costly mistake. The Texas HOMES and HEAR home energy rebate programs had not launched as of October 2026, which leaves utility incentives and financing as the main options still available.
Practical guidance
If qualifying equipment was installed in 2025, ask a tax professional about claiming it on IRS Form 5695 with your 2025 return, and keep the invoice and model numbers. This is general information, not tax advice.
Can I get the 25C tax credit for an HVAC system installed in 2026?
No, according to IRS guidance. Under Public Law 119-21, the Energy Efficient Home Improvement Credit is not allowed for property placed in service after December 31, 2025, as the IRS explained in Fact Sheet 2025-05. Consult a tax professional about your own situation.
What if my system was installed in 2025?
Qualifying equipment placed in service in 2025 is claimed on your 2025 federal return using IRS Form 5695, Residential Energy Credits. The date that matters for 25C is when the property was placed in service, not when you paid a deposit. A tax professional can confirm whether your equipment qualified.
Are the Texas HOMES and HEAR rebates available?
Not as of October 2026. The State Energy Conservation Office (SECO), part of the Texas Comptroller, manages the programs but had not launched them for homeowners. Do not sign a rebate agreement with anyone before SECO announces a launch, and check SECO's program page for official news.
What HVAC cost help is still available in Greater Houston?
Utility incentives and financing. CenterPoint Energy says residential HVAC incentives in its Houston Electric service area "start at $200 and may increase depending on your installation", applied on the invoice through a participating contractor. JHC Cooling & Heating offers financing through FTL Finance, subject to credit approval.
Sources
- IRS Fact Sheet 2025-05 — FAQs on modification of sections 25C, 25D and others under Public Law 119-21
- IRS — About Form 5695, Residential Energy Credits
- Texas Comptroller, State Energy Conservation Office — IRA home energy rebates
- CenterPoint Energy — Heating and Cooling (residential incentives and ComfortCheck)