The most thorough guide to California's HVAC incentive landscape — current as of May 2026. ECO Heating & Cooling helps Valley homeowners navigate every program and capture maximum savings.
The Los Angeles Department of Water and Power's rebate program for energy-efficient HVAC equipment is the most significant local program for Valley homeowners. Enhanced rates that went into effect in November 2025 dramatically increased the rebate amounts for qualifying heat pump systems.
| Equipment Type | Standard Rebate | Enhanced Rebate | Status |
|---|---|---|---|
| Heat Pump HVAC (Central Ducted) | $300/ton | Up to $2,500/ton | ✓ Active |
| Heat Pump Water Heater | — | $1,500 | ✓ Active |
Key requirement: You must be an LADWP electric customer and install a qualifying system. ECO Heating & Cooling handles the LADWP application on your behalf at no extra charge.
Southern California Gas Company offers rebates on high-efficiency gas appliances — currently active through December 2026. For homes keeping gas heating, these rebates significantly reduce the cost of upgrading to a high-efficiency furnace.
| Equipment | Rebate Amount | Efficiency Requirement | Status |
|---|---|---|---|
| High-Efficiency Furnace | $1.40–$25/kBTUh | AFUE 96%+ | ✓ Through Dec 2026 |
| Gas Water Heater | $80–$1,500 | Varies by type | ✓ Through Dec 2026 |
The Inflation Reduction Act created two relevant tax credit programs. These are federal income tax credits — not rebates. You claim them when you file your taxes. Consult your tax advisor for eligibility specifics.
| Credit | Equipment | Amount | Through |
|---|---|---|---|
| IRA 25C | Qualifying heat pump HVAC | Up to $2,000/year | 2032 |
| IRA 25C | High-efficiency AC or furnace | Up to $600/year | 2032 |
| IRA 25D | Geothermal heat pumps | 30% of cost, no cap | 2032 |
TECH Clean California provides incentives for heat pump HVAC and water heater installations. As of November 2025, single-family program funds are fully reserved (waitlist). Multifamily incentives remain available.
Current status: Call ECO for the latest TECH availability before planning a project around this funding.
The High-Efficiency Electric Home Rebate Act provides the most generous rebates for income-qualified households. If your household income falls below 150% of the Area Median Income, you may qualify for significant additional funding.
| Household Income | Heat Pump HVAC Rebate |
|---|---|
| Under 80% AMI | Up to $8,000 |
| 80–150% AMI | Up to $4,000 |
Heat pump HVAC and water heater rebates of $1,000–$3,000 for residential ($4,000 for small business). Currently paused — ECO monitors for reopening and will alert customers when it resumes.
Free assessment. We identify every program you qualify for and handle the paperwork.