California HVAC Rebates in 2026
What's Gone, What's Left, and Who Qualifies in the Inland Empire
LAST UPDATED: June 2026
If you’ve searched for California HVAC rebates recently, you’ve probably run into conflicting information.
Some articles still mention federal tax credits worth thousands of dollars. Others reference state rebate programs that are no longer accepting applications. And many don’t explain that your available incentives often depend on which utility serves your home.
The reality is simple: most of the major statewide incentives that homeowners relied on in recent years have either ended or exhausted their funding. However, several local utility rebate programs remain available throughout the Inland Empire.
Here’s what changed in 2026, what rebates are still active, and how to determine which incentives may apply to your home.
California HVAC Rebates 2026: Quick Overview
| Program | Status in 2026 |
|---|---|
| Federal 25C Tax Credit | Expired |
| HEEHRA Heat Pump Rebates | Fully Reserved |
| TECH Clean California HVAC Incentives | Fully Reserved |
| Southern California Edison Rebates | Available |
| Riverside Public Utilities Rebates | Available |
| Municipal Utility Rebates | Varies by Utility |
Questions about rebate eligibility? Give our team a call!
Which HVAC Rebates Ended in 2026?
Several of the most publicized HVAC incentives are no longer available for new projects.
Federal Energy Efficient Home Improvement Credit (25C)
The federal Energy Efficient Home Improvement Credit under Section 25C expired for projects placed in service after December 31, 2025.
Homeowners who installed qualifying equipment before the deadline may still claim the credit on their 2025 tax return, subject to IRS requirements. However, systems installed and placed into service during 2026 are not eligible.
Many online articles still reference the original Inflation Reduction Act timeline, which extended the credit through 2032. However, subsequent federal legislation accelerated the expiration date, making many older rebate articles inaccurate.
HEEHRA Heat Pump Rebates
The Home Electrification and Appliance Rebates (HEEHRA) program generated significant attention because qualifying households could receive up to $8,000 toward a heat pump installation.
As of January 2026, single-family funding in Southern California is fully reserved. New applicants are generally placed on a waitlist and may only receive incentives if additional funding becomes available.
For most homeowners planning a project today, HEEHRA should not be considered a reliable source of funding.
TECH Clean California HVAC Incentives
The TECH Clean California single-family heat pump HVAC incentive program has also exhausted available funding statewide.
The program previously offered incentives of up to $1,000 per qualifying system, with a maximum of $2,000 per household.
At the time of writing, homeowners should assume these incentives are unavailable unless additional funding is announced.
.
What HVAC Rebates Are Still Available in the Inland Empire?
While statewide programs have largely disappeared, local utility rebates continue to provide meaningful savings for many homeowners.
The rebates available to you depend primarily on your electric utility provider.
Southern California Edison (SCE)
Many Inland Empire communities receive electric service from Southern California Edison, including:
- Redlands
- Yucaipa
- Beaumont
- Loma Linda
- Mentone
- Calimesa
- Portions of San Bernardino County
- Portions of Riverside County
SCE continues to offer rebates on qualifying HVAC equipment, including central air conditioning systems and heat pumps.
Available incentives generally range from several hundred dollars to over $1,000 depending on:
- Equipment efficiency ratings
- Program requirements
- Available funding
- Whether the project includes electrification upgrades
Homeowners considering a transition from gas heating to a heat pump should also explore SCE’s Building Electrification Program, which may provide additional incentives.
Because program details can change throughout the year, rebate eligibility should always be confirmed before installation.
Riverside Public Utilities (RPU)
Homeowners located within the City of Riverside may qualify for some of the region’s most generous utility incentives.
Current programs include:
Heat Pump Systems
- Up to $750 per ton for qualifying electric heat pump installations meeting efficiency requirements
Central Air Conditioning
- $150 per ton for qualifying SEER-rated systems
- $250 per ton for higher-efficiency qualifying systems
- $25 rebate for qualifying maintenance that includes refrigerant verification
RPU rebate programs generally apply to existing homes rather than new construction and may require permits or additional documentation depending on the project scope.
Applications are typically required within a limited timeframe after installation.
City of Banning Electric Utility
Residents served by the City of Banning Electric Utility should check directly with the utility for current HVAC rebate offerings.
Because Banning operates its own municipal utility system, available incentives differ from Southern California Edison programs.
Program funding levels, equipment requirements, and rebate amounts may change periodically.
SoCalGas Furnace Rebates
Homeowners replacing a natural gas furnace may occasionally qualify for rebates through SoCalGas.
Eligibility varies based on equipment efficiency requirements and available program funding.
Anyone planning to install a high-efficiency gas furnace should verify current rebate availability before purchasing equipment.
Should You Choose a Heat Pump or Traditional AC System?
For many homeowners, the rebate conversation naturally leads to a bigger question: should you install a heat pump or a traditional air conditioner?
The answer depends on several factors.
1. Age of Your Existing System
If your HVAC system is more than 12 to 15 years old, replacement may already be approaching.
In those situations, comparing heat pump and traditional AC options side by side often makes sense because available rebates can significantly affect total project cost.
2. Electrical Capacity
Many older Inland Empire homes still operate with 100-amp electrical panels.
While heat pumps can often be installed successfully, some homes may require electrical upgrades. Understanding those costs early can help avoid surprises later.
3. Long-Term Energy Goals
Homeowners interested in reducing natural gas usage or transitioning toward an all-electric home should carefully evaluate available heat pump incentives.
In some situations, combining HVAC upgrades with other electrification projects can unlock additional utility incentives.
Frequently Asked Questions
Can I still claim a federal HVAC tax credit in 2026?
No. The federal Section 25C Energy Efficient Home Improvement Credit expired for systems placed in service after December 31, 2025.
Is a heat pump still worth considering without federal incentives?
For many homeowners, yes. Local utility rebates remain available, and a heat pump can provide both heating and cooling from a single system.
How long does it take to receive a rebate?
Processing times vary by utility. Most rebate programs require applications, supporting documentation, and proof of installation before incentives are issued.
Do renters qualify?
Most utility rebate programs require the applicant to be the property owner. Some income-qualified programs may offer limited pathways for renters, but eligibility varies.
The Bottom Line
The California HVAC rebate landscape looks very different than it did just a year ago.
The federal tax credit is gone. HEEHRA funding is fully reserved. TECH Clean California incentives are exhausted.
But that doesn’t mean Inland Empire homeowners are out of options.
Local utility rebates through Southern California Edison, Riverside Public Utilities, and certain municipal providers continue to offer meaningful savings on qualifying HVAC upgrades.
Before making a decision, confirm which utility serves your home, verify current rebate availability, and compare repair, replacement, and heat pump options side by side.
The difference between choosing the right program and missing it entirely can be hundreds—or even thousands—of dollars
Serving Our Neighbors in Redlands & the Inland Empire
When homeowners need honest HVAC and plumbing advice or questions about rebates, they turn to local companies that understand the unique challenges of Inland Empire homes. From Redlands and Yucaipa to Beaumont, Riverside, and beyond, Lasting Legacy Plumbing, Heating & Air helps families stay comfortable year-round with transparent recommendations, quality workmanship, and service.