Illinois HVAC Rebates and Incentives for 2026: What Chicagoland Homeowners Can Actually Claim

6 days ago

4 min read

The federal tax credit that used to offset a new furnace, AC, or heat pump ended for equipment placed in service after December 31, 2025, so it is not part of a 2026 budget. What is still available runs through Illinois utilities — Nicor Gas on the gas side, ComEd on the electric side — plus manufacturer promotions layered on top. None of these programs are large enough to change whether a system needs replacing, but stacked together they meaningfully offset the cost, and most homeowners never apply because they don't know the programs exist.

What happened to the federal HVAC tax credit?

The Energy Efficient Home Improvement Credit (Section 25C), which previously covered up to 30 percent of the cost of a qualifying furnace, air conditioner, or heat pump — up to $600 for a furnace or central AC and up to $2,000 for a heat pump — was eliminated for equipment installed after December 31, 2025 under the One Big Beautiful Bill Act. Contractors and marketing materials that still reference "up to $2,000 back on a heat pump" are describing a credit that no longer applies. Build a 2026 replacement budget around utility rebates and manufacturer offers only.

What Nicor Gas offers for 2026

Nicor Gas runs an annual residential rebate program for energy-efficient equipment, including gas furnaces, boilers, smart thermostats, and water heaters, with amounts and qualifying efficiency thresholds published fresh each January. The dollar figures change from year to year and depend on the specific AFUE or UEF rating of the equipment installed, so the only way to know your exact rebate is to check the current program guide — Nicor updates it annually — or have your contractor confirm it against your specific equipment before the paperwork is filed.

What ComEd offers on the electric side

ComEd's residential energy efficiency program covers electric equipment that Nicor's gas-focused program doesn't: central air conditioners, air-source heat pumps, and smart thermostats, along with broader home electrification incentives through its Go Electric initiative. As with Nicor, exact rebate amounts are revised periodically and are tied to specific efficiency ratings (SEER2, HSPF2) rather than a flat dollar figure per unit — confirm current numbers on comed.com before finalizing a quote, since a contractor's quote sheet from even a few months ago can be out of date.

How to actually capture these rebates

Confirm eligibility before you buy, not after. Rebate programs specify minimum efficiency ratings — a rebate-qualifying furnace or AC often costs more upfront than a baseline unit, so the math only works if you check the threshold first.
Keep the AHRI certificate. Utility rebate applications typically require the AHRI Reference Number for the specific matched system installed, not just a model number.
Apply promptly. Most utility rebate programs require submission within 60 to 90 days of installation, and some have an annual budget that can run out before December 31.
Ask your contractor to file it, or confirm they will hand you what you need. A rebate is only real money if the paperwork gets submitted correctly.

Do rebates change the repair-vs-replace decision?

Rarely by themselves. A utility rebate in the range of a few hundred dollars on a multi-thousand-dollar installation is a discount on a decision that should already make sense on its own merits — equipment age, repair history, and efficiency gains. Where rebates matter most is in choosing between two comparable pieces of equipment: if a slightly higher-efficiency model qualifies for a larger rebate and the incremental cost is small, the rebate can tip that specific choice.

Key takeaways

The federal 25C tax credit for furnaces, ACs, and heat pumps ended for equipment installed after December 31, 2025 — do not budget for it in 2026.
Nicor Gas offers annual rebates on qualifying furnaces, boilers, smart thermostats, and water heaters; amounts and thresholds are published fresh each year.
ComEd offers separate rebates for central air conditioners, heat pumps, and smart thermostats through its residential efficiency programs.
Confirm current rebate amounts and efficiency thresholds before you buy — programs are revised periodically and have limited annual budgets.

Frequently asked questions

Is there still a federal tax credit for a new furnace or AC in 2026?

No. The Energy Efficient Home Improvement Credit (Section 25C) ended for equipment placed in service after December 31, 2025. Utility rebates through Nicor Gas and ComEd are the incentives that remain available in 2026.

Can I combine a Nicor Gas rebate with a ComEd rebate on the same project?

Often yes, since they cover different equipment — Nicor's programs are gas-side (furnaces, boilers) and ComEd's are electric-side (AC, heat pumps, thermostats). A single project replacing both a furnace and an AC may qualify for rebates from both utilities; confirm program rules for your specific equipment.

How much is a smart thermostat rebate worth?

Both Nicor Gas and ComEd have offered smart thermostat rebates in recent years, but the exact amount changes annually and depends on the specific thermostat model's qualification status. Check the current program page before purchasing if the rebate is a deciding factor.

Does CCC Mechanical serve my area in Chicagoland?

CCC Mechanical LLC serves homeowners and businesses across Chicago, Arlington Heights, Buffalo Grove, Elmwood Park, Melrose Park, Niles, and Northbrook. Call 630-827-9024 to confirm service at your address.

Planning a furnace, AC, or heat pump replacement in 2026? Call 630-827-9024. We'll help you confirm which current Nicor Gas and ComEd rebates apply to your project before you commit to equipment. Every complete installation includes a free Honeywell T5 smart thermostat and a free Aprilaire whole-home humidifier — see the promotions page.