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Absolute Air Conditioning and Heating

2026 HVAC rebates & tax credits — the real picture

What's actually available to Coachella Valley homeowners today, what the 2026 code changes mean, and how we handle the paperwork. Updated for 2026.

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Building code

California Title 24 — 2025 Building Energy Code

For new residential construction and many replacements, heat pumps are now the code-preferred baseline in most California climate zones — including Coachella Valley zones. Some system replacements may trigger duct-sealing, HERS verification, or heat-pump-first requirements.

For informational purposes only. Absolute Air does not perform Title 24 compliance or HERS testing — when a job requires it, verification is completed by an independent third-party HERS rater.

IID Energy Rewards — 2026

Central AC & Heat Pump Systems

$125–$300 / ton

Tiered by efficiency (Tier 1–3). Requires an AHRI certificate with SEER2 (and EER2 for AC, or HSPF2 for heat pumps) and a paid-in-full invoice listing all parts.

Gas Furnace → Heat Pump Conversion

$400 / ton

New heat pump replacing a gas-furnace system. A ≤5-ton system must meet 16.2 SEER2 / 7.7 HSPF2 (split) or 15.2 SEER2 / 7.2 HSPF2 (packaged), with an AHRI certificate.

Ductless Mini-Split System

$200 / unit

System must meet or exceed 17.1 SEER2 and be AHRI certified, installed directly in the home's conditioned space.

ENERGY STAR Smart Thermostat

$50 / unit

Must be listed on the ENERGY STAR certified-thermostats list. Limit of two thermostat rebates per household.

How the IID program works

  • Equipment must be purchased & installed in 2026, applied for online by Dec 31, 2026.
  • Installation by a contractor on IID's Participating Contractor List (unless self-installed).
  • Rebate can't exceed 50% of the purchase price.
  • Residential rebates are capped at $5,000 per account, per year.
See full IID Energy Rewards details →

Rebate amounts, requirements and funding are set by IID and can change — confirm current eligibility before you buy. Applications are accepted only through IID's online portal (EnergyRewards@iid.com · 1-760-482-3656).

Other utility programs

Southern California Edison (SCE)

  • Heat pump conversion incentives (single-family)
  • Smart thermostat rebates (Nest, Ecobee, Honeywell)
  • Duct-sealing & test-in/test-out incentives
  • Whole-home electrification pilots (income-qualified)

SoCalGas

  • High-efficiency furnace rebates (95+ AFUE)
  • Tankless water heater rebates (where relevant to combined systems)
  • Program-specific paperwork we handle installer-side

Coachella Valley Water District

  • Occasional evap-cooler / swamp-cooler retirement incentives
  • Rare but worth checking on multi-unit properties

For informational purposes only. Rebate programs, funding and amounts change often and are set by each utility or agency — we confirm current eligibility when we quote your project.

Financing

Wisetack

Quick soft-credit-pull pre-qualification (no impact on your credit score). Fixed monthly payments, no prepayment penalties.

Aqua Finance

Longer-term financing options for larger installs.

Full financing terms & disclosures live on our financing page .

FAQ

Are federal HVAC tax credits still available in 2026? +

Not for most homeowners. The federal 25C Energy Efficient Home Improvement Credit and the 25D Residential Clean Energy Credit both ended for installations completed after December 31, 2025. If your project was completed in 2025, ask your tax preparer about claiming it on your 2025 return.

What changed with Title 24 for HVAC in 2026? +

California's 2025 Title 24 energy code took effect January 1, 2026. For new construction and many system replacements, heat pumps are now the code-preferred baseline in most climate zones, including the Coachella Valley. Some replacements also require duct testing or HERS verification, which is performed by an independent third-party HERS rater.

Are there utility rebates from SCE, SoCalGas or IID for HVAC? +

Yes. For IID electric customers, the IID Energy Rewards program offers HVAC rebates in 2026: central AC and heat pump systems earn $125–$300 per ton depending on efficiency tier, a gas-furnace-to-heat-pump conversion earns $400 per ton, ductless mini-splits earn $200 per unit, and ENERGY STAR smart thermostats earn $50 per unit. Southern California Edison and SoCalGas run their own programs for heat pump conversions, smart thermostats and high-efficiency furnaces. IID rebates require AHRI-certified equipment and installation by a contractor on IID's Participating Contractor List. We check current program eligibility at the time of your quote and never quote a rebate that isn't currently funded.

Does Absolute Air handle rebate paperwork? +

For most utility programs we handle the installer-side paperwork (equipment specs, AHRI-certified performance sheets, install date documentation) so all you do is sign.

Can I finance the portion the rebates don't cover? +

Yes. Financing is available through Wisetack and Aqua Finance for qualified applicants, and we'll walk through what monthly payment fits your budget — no pressure, no upselling.

Expert HVAC Services for Your Home & Business

Ready to talk numbers — rebates included?

Call us and we'll walk through what's currently funded, what your install qualifies for, and what your out-of-pocket looks like. Honest advice, no upselling.

Request a Quote(760) 318-5541