Quick Answer
Real money is still available in 2026, but the map changed: federal tax credits ended for installs after December 31, 2025, and California's TECH/HEEHRA heat-pump rebates are closed or fully reserved. What's live: SoCalGas appliance rebates (up to $1,500 on qualifying tankless water heaters, up to roughly $2,000 on 97% AFUE furnaces), LADWP's Consumer Rebate Program (up to $2,500 per ton on heat pumps — City of LA only), and SCE instant equipment discounts. Which one applies depends on who bills your gas and electricity.
- Your utility territory decides your rebate — LADWP vs. SCE for electric, SoCalGas for gas.
- Federal 25C/25D tax credits ended after 2025 — no 2026 install qualifies, period.
- SoCalGas pays $80–$1,500 on qualifying tankless water heaters by efficiency (UEF) tier — install by 12/31/2026.
- LADWP pays up to $2,500/ton on heat pumps (plus up to $2,500 on heat pump water heaters); the application needs a paid invoice, AHRI certificate, and a final approved permit.
- Every live program is first-come, funds-limited — verify before you buy, not after.
Which rebates can you actually claim in 2026?
Here is the live list — verified against each program's official page, not a sales flyer. Everything else you may have heard about (federal tax credits, TECH, HEEHRA) is covered honestly two sections down.
| Program | Amount | Who qualifies | How it's claimed |
|---|---|---|---|
| SoCalGas — tankless water heater | $80–$1,500 by UEF tier | SoCalGas residential customers replacing a conventional gas tank in a single-family home | Mail/online application after install (by 12/31/2026) |
| SoCalGas — high-efficiency gas furnace | Tiered by AFUE — roughly $110 up to ~$2,000 on a 97%+ AFUE furnace | SoCalGas residential customers; licensed C-20 contractor install; limit one per household | Application after install |
| SoCalGas — other | Smart thermostat $75; high-efficiency storage water heater $300–$575 | Same program | Application after install |
| LADWP Consumer Rebate Program — heat pump HVAC | Up to $2,500/ton | LADWP residential electric customers (City of LA only) | Apply within 12 months with paid invoice + AHRI certificate + final approved permit |
| LADWP CRP — heat pump water heater | Up to $2,500/unit | Same as above (ENERGY STAR models) | Same application |
| LADWP CRP — standard AC | $100–$120/ton | Same as above | Same application |
| SCE — heat pump equipment discounts | Instant $300+/ton (central), up to $600/ton (mini-split) | SCE residential territory — most of Power Pro's footprint outside the City of LA | Applied at equipment purchase through participating distributors/contractors — no application |
Every one of these is first-come, first-served while funding lasts — LADWP says outright that "rebates are not guaranteed." That is why the order of operations matters: confirm eligibility, then buy equipment. Never the reverse.
How do you know which utility's program is yours?
The decoder is simpler than it looks — one program per meter type:
- Electric — City of Los Angeles addresses: your electric utility is LADWP, so the Consumer Rebate Program is your heat pump / HPWH / AC path. SCE programs do not apply to you.
- Electric — most of the rest of LA County and Orange County (Cerritos, Gardena, Anaheim, Long Beach outside city utility areas, and the surrounding cities Power Pro serves): your electric utility is SCE, so instant equipment discounts through participating distributors are your heat pump path — and LADWP's program does not apply to you.
- Gas — nearly everywhere in our service area: SoCalGas. Tankless, furnace, storage water heater, and thermostat rebates all run through the same SoCalGas rebate program regardless of who supplies your electricity.
Grab a utility bill (or two) and the answer is on the letterhead. If you're still unsure, tell us your address when you request an estimate and we'll sort your territory before quoting.
What expired — and why you should be suspicious of ads that still promise it
Three big programs died or froze between late 2025 and early 2026, and plenty of marketing hasn't caught up:
- Federal 25C and 25D tax credits — expired. The One Big Beautiful Bill (P.L. 119-21) terminated both credits for property placed in service after December 31, 2025, per the IRS's own FAQ. Only installs completed in 2025 could be claimed, on 2025 returns. No 2026 installation qualifies for a federal energy tax credit.
- TECH Clean California — closed. The program stopped accepting reservations on November 14, 2025; single-family incentives are fully reserved. Phase II is in design with no launch date.
- HEEHRA Phase I — fully reserved statewide as of February 24, 2026 (the Southern California region reserved out even earlier, on January 7, 2026). It's waitlist-only and not retroactive. Phase II and the HOMES program are funded but the CEC says plainly: "Rebates are not yet available."
Here's the practical takeaway: if a 2026 sales pitch dangles a federal tax credit or a TECH/HEEHRA rebate as money you'll get, question the rest of the pitch too. A contractor who is careless (or worse) with rebate facts is rarely careful anywhere else.
How do you actually claim a SoCalGas rebate?
SoCalGas runs its residential rebates through the Home Energy Efficiency Rebate (HEER) program — the 2026 application is a straightforward form, but the rules reward reading them first:
- Install by December 31, 2026 — the 2026 program year has a hard equipment-installation deadline.
- First-come, while funds last. Submitting early in the year is meaningfully safer than December.
- The tankless amount is set by the unit's UEF (Uniform Energy Factor) tier: .82–.86 pays $80; .87–.94 pays $900; .95 pays $1,100; .96–.97 pays $1,300; and .98+ pays the full $1,500. The unit must be an ENERGY STAR gas tankless replacing a conventional tank water heater in a single-family detached home.
- Furnace rebates are tiered by AFUE and paid per kBtuh of input — the top tier (97%+ AFUE) works out to roughly $2,000 on a typical 80,000 BTU furnace. One furnace rebate per household, and the install must be done by a licensed C-20 contractor.
Which tier a specific model lands in changes the math on tank vs. tankless — so we identify the UEF tier in writing as part of the quote, before you commit to equipment.
How does the LADWP Consumer Rebate Program work?
If your electricity comes from LADWP — City of Los Angeles addresses — the Consumer Rebate Program is currently the strongest heat-pump money in Southern California: up to $2,500 per ton on qualifying central, split, and mini/multi-split heat pumps (amounts scale with SEER2/HSPF2 efficiency), plus up to $2,500 on a qualifying ENERGY STAR heat pump water heater.
The paperwork requirements are strict, and one of them surprises people: you must apply within 12 months of purchase with a paid invoice, the AHRI certificate for the installed equipment match, and — this is the one that bites — the final approved permit. Not "a permit was pulled." Finaled, inspected, approved.
An unpermitted install cannot claim this rebate. If an installer suggests skipping the permit to save a few hundred dollars, they are quietly costing you thousands in rebate eligibility — our permits guide walks through exactly how that works. And remember LADWP's own caveat: funding is limited and rebates are not guaranteed, so timing matters.
What does Power Pro do for you?
Three things, and we put them in writing:
- We confirm eligibility before you buy. Utility territory, equipment tier, program status — checked against the current program terms on the day we quote, not against last year's flyer.
- We quote net-of-rebate honestly. If a rebate is genuinely claimable, we show the real amount and the real conditions. If a program is dead or reserved out, our quote says so instead of dangling it.
- We produce the documentation your application needs. The itemized paid invoice, the AHRI certificate match, and the finaled permit — because we pull permits as part of the job — are exactly the package programs like LADWP's require.
We also back the price itself: free estimates and a price match guarantee. Tell us about your project and we'll tell you what it actually qualifies for in 2026 — even when the honest answer is "nothing federal anymore."
About this guide
Written and reviewed by the Power Pro Plumbing, Heating & Air team — serving Los Angeles & Orange County for 20+ years from offices in Cerritos, Gardena, and Anaheim. CA License #766254 (verify it at cslb.ca.gov). Backed by our 100% satisfaction guarantee. Guidance reflects the systems we install and service every week. Last reviewed July 3, 2026.
Sources & Standards
- IRS — FAQ on termination of 25C/25D credits under P.L. 119-21 (OBBB)
- TECH Clean California — single-family incentive status (closed/fully reserved)
- California Energy Commission — IRA residential rebate programs (HEEHRA/HOMES status)
- SoCalGas — rebate notices and current program terms
- SoCalGas — 2026 HEER rebate application
- LADWP — Consumer Rebate Program
- SCE — heat pump equipment discount fact sheet
Common questions
Are there still federal tax credits for a new AC or heat pump in 2026?
No. The federal 25C and 25D credits were terminated for equipment placed in service after December 31, 2025. Only installations completed in 2025 could be claimed, on 2025 tax returns. Any 2026 ad still promising a federal tax credit on a residential HVAC install is wrong.
How much is the LADWP heat pump rebate?
Up to $2,500 per ton for qualifying heat pumps (and up to $2,500 for a qualifying heat pump water heater) for LADWP residential electric customers — City of Los Angeles addresses only. Funding is limited and rebates are not guaranteed, and the application requires a paid invoice, the AHRI certificate, and a final approved permit within 12 months of purchase.
What rebates exist for a tankless water heater?
SoCalGas pays $80–$1,500 depending on the unit's UEF efficiency tier for a qualifying ENERGY STAR gas tankless water heater replacing a conventional tank in a single-family detached home, installed by December 31, 2026. It's first-come while program funds last.
Is TECH Clean California or HEEHRA still available?
No. TECH Clean California stopped accepting reservations on November 14, 2025, and HEEHRA Phase I is fully reserved statewide — waitlist only. Phase II is funded but not launched, with no date announced. Ask us to flag your project if it reopens; until then, treat any pitch built on those programs as out of date.