Florida HVAC & Water Heater Rebates + Tax Credits 2026

As of June 2026, there is no federal tax credit for new HVAC installs (it ended December 31, 2025), and Florida’s big HEAR rebates are not open yet. What you can actually get today in Tampa Bay: up to $550 from TECO, up to $600 from Duke Energy, up to $700 from Peoples Gas, plus manufacturer promos and financing.

Program details verified June 2026. Rebate amounts, rules, and availability change without notice, so confirm current status with each program before you count on the money. We re-check these programs every time we quote an install.

We are Home Therapist Cooling, Heating & Plumbing, a licensed Tampa Bay HVAC and plumbing company (FL licenses CAC1819196 and CFC1431159, 1,300+ five star reviews). We handle rebate paperwork with homeowners every week. Here is the honest state of Florida rebates and tax credits in 2026.

Did the federal HVAC tax credit end? Yes. Here is what that means

We get this question on almost every AC replacement estimate, because half the internet still says the IRS pays $2,000 back on a heat pump. Not for a 2026 install.

The federal Energy Efficient Home Improvement Credit (Section 25C) ended for any equipment placed in service after December 31, 2025. Congress terminated it in the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025), and the IRS FAQ guidance is blunt about the cutoff: if the installation finished after December 31, 2025, there is no credit. The same law ended the Section 25D Residential Clean Energy Credit (solar, geothermal heat pumps, solar water heating) for expenditures after that date.

What 25C used to pay, for context: up to $2,000 for a qualifying heat pump or heat pump water heater, up to $600 for high efficiency central AC, up to $1,200 per year for other improvements. That money is gone for new 2026 projects. Anyone telling you otherwise is working from stale information.

One important exception: 2025 installs can still be claimed in 2026

If your qualifying system was installed and running by December 31, 2025, you claim the credit on your 2025 federal return using IRS Form 5695, Part II. For 2025 installs the IRS also requires the equipment to come from a qualified manufacturer, and you report that manufacturer’s product identification number (PIN/QMID) on the form. If you already filed your 2025 taxes and forgot the credit, your tax professional can file an amended return (Form 1040-X), generally within three years. We can pull the invoice and AHRI certificate for any system we installed in 2025; just call.

Master table: every Florida program, verified June 2026

Florida HEAR and HOMES rebates: real money, not open yet

Florida received roughly $346 million in federal Inflation Reduction Act funding for two home rebate programs, administered by the Florida Department of Agriculture and Consumer Services (FDACS) through the Florida Energy Saver Program. The headline numbers are real and they are big:

• Up to $8,000 for a heat pump for space heating and cooling
• Up to $1,750 for a heat pump water heater
• Up to $4,000 for an electrical panel upgrade, $2,500 for wiring, $1,600 for insulation, air sealing, and ventilation, $840 for an electric stove or dryer
• $14,000 maximum per household

The catch, and it is a big one: as of June 2026, Florida is not accepting rebate applications. FDACS says a HEAR pilot launches first, with the full program to follow. The portal currently lets you register for an alert when applications open, and that is the only action available today. Anyone advertising “get your $8,000 Florida heat pump rebate now” is selling something that does not exist yet.

HEAR is also income qualified. Households under 80% of area median income can get up to 100% of the project cost covered; households between 80% and 150% of AMI can get up to 50%; above 150% of AMI you are not eligible at all. AMI depends on your county and household size, so check your numbers on the FDACS portal. The companion HOMES program (whole home efficiency rebates based on modeled energy savings) comes after HEAR, with Florida details still to be published; the federal framework is described at energy.gov.

Our honest advice: do not delay a dead AC or a leaking water heater waiting on HEAR. There is no published open date, and equipment bought before the program opens is unlikely to qualify retroactively (confirm final rules with FDACS at launch). If your system is limping but alive and you qualify on income, register now and we will plan a heat pump installation that fits the program when it opens.

TECO / Tampa Electric: up to $550 on a high efficiency system

Most of Hillsborough County is TECO territory, so this is the rebate that applies to the majority of our customers. The Heating & Cooling Program pays two tiers when you replace your system:

• $40 for systems at SEER 16.00 / SEER2 15.20 or better
• $550 for systems at SEER 17.00 / SEER2 16.20 or better (geothermal qualifies at 15.0 EER or better)

Heat pumps and straight cool systems paired with natural gas heat both qualify (a new furnace is required on gas pairings; propane does not qualify). The application must go in within 90 days of installation, and when a participating contractor handles it, the rebate shows up as a line item deducted right on your invoice instead of a check you wait for. TECO also offers a free energy audit (in home or online), a ceiling insulation rebate after a free attic inspection, discounted duct repair after a free duct inspection, and a free weatherization program for income qualified customers. Worth booking the free audit even if you are not replacing anything this year.

Duke Energy Florida: rebates for Pinellas and Pasco neighbors

If you are on the Duke side of the bay (most of Pinellas, much of Pasco), Duke’s Home Energy Improvement program currently pays:

• Up to $600 on a qualifying heat pump or AC replacement
• Up to $450 instant rebate on duct test and repair
• Up to $600 to $800 on attic insulation upgrades, paid per square foot ($0.25 to $0.31/sq ft) depending on how thin your existing insulation is, brought up to R-38
• Up to $800 on a heat pump (hybrid) water heater, one of Duke’s newer rebates

The non-negotiable rule everyone misses: Duke requires a free Home Energy Check before any work begins (or one completed within the past 24 months). Do the work first and the rebate is gone. Duct and insulation measures also require a Duke approved contractor. If you are in Duke territory, tell us before we schedule the install and we will sequence it correctly.

FPL: instant rebates on the south side of the bay

FPL serves Manatee and Sarasota counties and beyond (not Hillsborough). FPL offers an instant $200 rebate on qualifying high efficiency AC systems through participating contractors, a $220 instant ceiling insulation rebate for homes with very low existing insulation, and a free Home Energy Analysis. Rebates apply as invoice credits.

Peoples Gas: $350 to $700 on gas water heaters

Peoples Gas (TECO’s natural gas sister company) runs the strongest active water heater rebates in the region, listed at peoplesgas.com:

• Tank gas water heater: $550 if replacing electric, $350 if replacing gas
• ENERGY STAR tank: $650 if replacing electric, $400 if replacing gas
• Tankless gas water heater: $700 if replacing electric, $550 if replacing gas (minimum 5 gallons per minute)

Units must be new, you need an active Peoples Gas account (landlords qualify too), and you have up to 12 months from installation to apply with your paid invoice. If your home already has a gas line, a tankless conversion with a $700 rebate on top is one of the better deals running in 2026; we install Rheem gas tank and tankless units that meet the requirements. See our water heater installation page for current pricing.

Florida sales tax holiday on ENERGY STAR appliances: ended

Florida ran a year long sales tax exemption on ENERGY STAR appliances (including water heaters up to $1,500) that ended June 30, 2024 and has not been renewed as of June 2026. If a blog tells you to time your water heater purchase to the Florida tax holiday, it is recycling 2023 advice. Watch floridarevenue.com for any future exemption periods; the Legislature changes the holiday lineup most years.

Manufacturer and seasonal promos: real, but always changing

Goodman and Daikin (the AC and heat pump brands we install) and Rheem (our water heater brand) all run seasonal consumer promotions: instant rebates on select systems, financing promos, and bundle deals in spring and fall. Amounts and qualifying models change every promo window, so we will not print numbers that could be wrong by July. Whatever promo is active when we quote your system gets applied and shown as its own line. Ask us what is running right now.

Financing: the lever that is always available

With the federal credit gone and HEAR not open, financing does the heavy lifting for most 2026 replacements. We offer financing with $0 down options for qualifying applicants on new systems and water heaters, so you can replace failing equipment now and still capture the utility rebate on the same invoice. Repairs work differently: every service call gets a FREE diagnosis, and our $279 minimum labor applies only to repair work you approve, never as a fee for showing up.

How to actually claim your rebate, step by step

1. Identify your utility first. TECO, Duke, FPL, and Peoples Gas all have different rules, and your electric and gas utilities can each pay a rebate on the same project.
2. Duke customers: book the free Home Energy Check before any work starts. This is the step that kills more Duke rebates than any other. TECO’s free energy audit is smart but not required for the AC rebate.
3. Pick equipment that clears the rebate tier. For TECO’s $550 tier that means SEER2 16.20 or better. We spec Goodman and Daikin systems against the current qualifying lists when we quote, so you are not guessing.
4. Install with a licensed contractor and get the rebate documented. On TECO jobs through a participating contractor, the rebate is deducted as a line item on the invoice. We provide the itemized invoice and the AHRI certificate that programs ask for.
5. Submit on time. TECO allows 90 days from installation. Peoples Gas allows 12 months. Duke and FPL instant rebates are handled in the contractor workflow.
6. If your system went in during 2025, claim the federal credit. File IRS Form 5695 Part II with your 2025 return (or amend it) using the manufacturer’s PIN from your paperwork. Your tax professional files it; we supply the documents.
7. Register at the FDACS Florida Energy Saver portal if your household income is under 150% of AMI, so you get notified the day HEAR applications open.

Tampa Bay specifics: why heat pumps and HPWHs are the smart play here

Every remaining rebate program is steering toward the equipment that fits our climate best anyway. Tampa Bay’s long humid cooling season and mild winters are exactly the duty cycle where a modern heat pump beats straight cool with electric strip heat: same cooling, far cheaper winter heating, and it is the category HEAR will pay up to $8,000 on for income qualified households when it opens.

Heat pump water heaters are the quiet stack-up winner. A Rheem ProTerra pulls heat from warm Florida garage air (dehumidifying it as a side effect), cuts water heating cost versus standard electric, and is the unit Duke pays up to $800 on today, with HEAR adding up to $1,750 for eligible households later. On the gas side, Peoples Gas pays up to $700 on tankless conversions right now.

One more 2026 reality: the industry switched to R-454B refrigerant and SEER2 ratings, and the new generation equipment costs more than the R-410A units did. That is exactly why the rebate tiers matter. The jump from a SEER2 15.2 system to a SEER2 16.2 system is often partially paid for by TECO’s $550 tier plus lower power bills, and we will show you that math side by side on a new AC installation quote, with FREE estimates on replacements and FREE diagnosis on repairs.

Frequently asked questions

• Can I write off a new hot water heater?

  Yes, qualifying energy-efficient water heaters may earn a federal tax credit of up to 30% of the installed cost under the Inflation Reduction Act. Heat pump water heaters typically qualify. Home Therapist installs Rheem models and offers free estimates so you know your total cost before committing. Call (813) 343-2212.

• How much is the rebate?

  Federal tax credits can reach 30% of installation cost for qualifying heat pump water heaters or high-efficiency HVAC systems. Florida utility rebate amounts vary by provider and change annually. Home Therapist provides free estimates and free diagnosis on every visit so you can plan accurately. Call (813) 343-2212 for current details.

• How to apply for HVAC rebates in Florida without hassle

  Start by getting a free estimate from a licensed contractor like Home Therapist (CAC1819196, CFC1431159) who can confirm equipment eligibility. Then submit your utility rebate application and save your IRS Form 5695 for federal credits. We handle same-day installs and paperwork guidance. Call (813) 343-2212.

Home Therapist Cooling, Heating & Plumbing serves Tampa Bay with licensed HVAC (CAC1819196) and plumbing (CFC1431159) service, 1,300+ five star reviews, and FREE estimates on replacements. Program details on this page verified June 2026 against IRS, FDACS, TECO, Duke Energy, FPL, Peoples Gas, and Florida Department of Revenue sources linked above. Amounts and availability change; confirm with each program.