Furnace rebates and tax credits: what is available for a new furnace now?
In some states. High efficiency furnace rebate — Oklahoma Natural Gas: “$650 rebate for the installation of a new 95%+ efficient natural gas furnace or boiler.” “You can claim the credit for improvements made through December 31, 2025.” Oklahoma Natural Gas, read October 29, 2026; IRS, read October 17, 2026.
InstaBids is an AI-run marketplace for homeowners and property managers: describe a home job once, by chat or through your own AI assistant, add photos, and get multiple written quotes on the same scope, compared apples to apples, with no phone calls or home visits before you pick.
To compare written bids on a new high efficiency furnace, with the AFUE rating each contractor offers, you can post the job on InstaBids.
- Describe it onceBy chat, or through your own AI assistant, and add photos.
- Post it and send itContractors bid in writing on that scope.
- Compare line by lineEvery quote is written against the same scope.
- You chooseContact details stay hidden until you pick and they confirm.
At a glance
- December 31, 2025Federal furnace credit: not allowed for property placed in service afterInternal Revenue Service (IRS), Fact Sheet FS-2025-05, Aug. 21, 2025, read October 17, 2026
- ≥ 97% AFUENicor Gas, Illinois: top furnace efficiency tierNicor Gas, Energy Efficiency Rebates for Your Home, read October 29, 2026
- September 30, 2027UGI furnace rebate, Pennsylvania: install beforeUGI Utilities, Gas Furnace Rebate, read October 29, 2026
- 180 daysOklahoma Natural Gas: time after installation to send the paperworkOklahoma Natural Gas, Rebate Information: Furnace (2026), read October 29, 2026
For your AI assistant
MCP connector · REST API · plain HTMLHand any of these to your assistant and it can help you write this job's request; you send the request yourself. What you type in the job box above goes into the prompt these buttons carry. The connector asks you to sign in to your InstaBids account the first time.
- MCP connector URL
https://instabids.ai/api/agent/mcp - Agent API (OpenAPI)
https://instabids.ai/openapi.json - Start-request link
https://instabids.ai/intake?trade=hvac&from=rebates-furnace&utm_source=us&utm_medium=page&utm_campaign=rebates&page_type=rebates&job=furnace - Prompt for any AI, with your job
- ChatGPTOpens with the prompt
- ClaudeOpens with the prompt
- GrokOpens with the prompt
- GeminiCopies the prompt, then opens
Every page is plain HTML. Steps for every assistant: add to your assistant.
Programs, amounts and status
| South Jersey Gas (New Jersey): gas furnace (≥95%) non-condensing to condensing | “Rebate up to $900.00” Status: open (source read 29 October 2026). “Invoice - A paid invoice dated between January 1 2025, and June 30 2027, indicating the type of equipment, installation date, purchase price, model number and serial number.” Pays for: “Gas furnace (≥95%) non-condensing to condensing”. Who it is for, in the agency's words: “Must replace a non-condensing gas furnace” How to apply: sjgsaveenergy-customer.clearesult.comSouth Jersey Gas, read 29 October 2026 |
|---|---|
| Elizabethtown Gas (New Jersey): gas furnace (≥95%) non-condensing to condensing | “Rebate up to $900.00” Status: open (source read 29 October 2026). Pays for: “Gas furnace (≥95%) non-condensing to condensing”. Who it is for, in the agency's words: “Must replace a non-condensing gas furnace” How to apply: etgsaveenergy-customer.clearesult.comElizabethtown Gas, read 29 October 2026 |
| Natural Gas Appliance Upgrading Rebate: Space Heating – Natural Gas Furnace or Boiler | “$1000” Status: open (source read 28 October 2026). “1. Rebates are effective through December 31st, 2026.” Pays for: “Space Heating – Natural Gas Furnace or Boiler”. Who it is for, in the agency's words: “2. Limited to single and multifamily residential dwellings within the City Natural Gas service territory. Mobile homes are not eligible for rebates.” How to apply: ellensburgwa.govCity of Ellensburg Gas Division (Washington), read 28 October 2026 |
| Natural gas heating system rebates | “$650 rebate” Status: open (source read 29 October 2026). “Rebates are limited and issued on a first-come, first-served basis until program funds are depleted.” Pays for: “new 95%+ efficient natural gas furnace or boiler”. Who it is for, in the agency's words: “• Rebates may be available to any Oklahoma Natural Gas current or prospective customer.” How to apply: oklahomanaturalgas.comOklahoma Natural Gas, read 29 October 2026 |
| Gas Furnace Rebate | “$500 rebate” Status: open (source read 29 October 2026). “*Program is open to UGI residential gas customers in Pennsylvania who install qualifying residential equipment prior to September 30, 2027, pending available funds.” Pays for: “ENERGY STAR® certified natural gas furnace”. Who it is for, in the agency's words: “This program is currently available to existing and new UGI gas residential customers in Pennsylvania with a rate class of R, RT, N and NT. UGI gas customers in Maryland are currently not eligible.” How to apply: ugi.comUGI Utilities, read 29 October 2026 |
| Gas Furnace | “Up to $250 rebate” Status: open (source read 29 October 2026). “Installation must be completed between January 1, 2026 and December 31, 2026.” Who it is for, in the agency's words: “The property must be serviced by CenterPoint Energy of Indiana, Inc. (“CenterPoint Energy”) under an active residential account. Homes must have CenterPoint Energy natural gas as the primary heat source to be eligible for this rebate.” How to apply: centerpointenergyindiana-residential-rebate.clearesult.comCenterPoint Energy Indiana, read 29 October 2026 |
| Furnaces - $150 - $225 | “$150 - $225” Status: open (source read 29 October 2026). “2. Install new, qualifying products between January 1, 2026 and December 31, 2026.” Who it is for, in the agency's words: “High-efficiency products use less energy and can save you money. Rebates for energy efficiency upgrades are available to all current residential Nicor Gas customers, and participation is simple.” How to apply: nicorgas.comNicor Gas, read 29 October 2026 |
| State Emergency Relief: Home Repairs (Energy-Related Furnace Repairs) | “a lifetime maximum of $4,000 per family group” Status: open (source read 22 October 2026). “Check eligibility and apply online using MI Bridges” Who it is for, in the agency's words: “Applicant must be the owner or purchaser of the home, or hold a life estate on the home with the responsibility for home repairs.” How to apply: michigan.govMichigan Department of Health and Human Services (MDHHS), read 22 October 2026 |
| Mississippi Weatherization Assistance Program (WAP) | Amount not stated by Mississippi Department of Human Services (MDHS) (read 2026-10-17) Status: open (source read 17 October 2026). “To apply for Weatherization assistance, you will need to submit a pre-application through the” Who it is for, in the agency's words: “The Weatherization Assistance Program is available to individuals who are within 200% of the current Federal Poverty Guidelines. Use the table below to find the program income limit for different household sizes.” How to apply: mdhs.ms.govMississippi Department of Human Services (MDHS), read 17 October 2026 |
| Maryland Weatherization Assistance Program (WAP) | Amount not stated by Maryland Department of Housing and Community Development (DHCD) (read 2026-10-17) Status: open (source read 17 October 2026). “Application status: Open” Who it is for, in the agency's words: “Both homeowners and renters are assisted. Homeowners, affordable housing developers, property managers, and other housing and community development agencies are encouraged to contact their local weatherization agency (LWA) - PDF - 79.33 KB for more information.” How to apply: dhcd.maryland.govMaryland Department of Housing and Community Development (DHCD), read 17 October 2026 |
| Weatherization Assistance Program (WAP), U.S. Department of Energy | Amount not stated by U.S. Department of Energy (DOE), through state weatherization administrators (read 2026-10-17) Status: open (source read 17 October 2026). “To apply for WAP assistance, first identify your state weatherization administrator and reach out to them.” Who it is for, in the agency's words: “One of the primary factors affecting eligibility is income. Households at or below 200% of the poverty income guidelines or that receive Supplemental Security Income are considered under DOE guidelines as eligible for weatherization services. In addition, each state or territory may elect to use the U.S. Department of Health & Human Services’ (HHS) Low-Income Home Energy Assistance Program (LIHEAP) eligibility criteria of 60% of state-median income.” How to apply: energy.govU.S. Department of Energy (DOE), through state weatherization administrators, read 17 October 2026 |
| Home Owner Managing Energy Savings (HOMES) Rebate Program | Amount not stated by U.S. Department of Energy (DOE) (read 2026-10-17) Status: open (source read 17 October 2026). “Home Energy Rebates are now available in select states.” Who it is for, in the agency's words: “The HOMES Rebate Program provides rebates for eligible whole-home energy upgrade projects for households at all income levels. American households can save up to $8,000* on home upgrades based on modeled energy savings levels with a minimum savings of 20%. HOMES offers several possible pathways to affordable upgrades including insulation, air sealing, heating and cooling equipment, water heaters, duct sealing, appliances, and lighting. HOMES rebates provide Americans with household upgrades that can lower monthly energy bills while improving comfort and quality of the home.” How to apply: naseo.org (individuals do not apply to this agency directly)U.S. Department of Energy (DOE), read 17 October 2026 |
| Energy Efficient Home Improvement Credit (25C) | “$600 for natural gas, propane, or oil furnace or hot water boilers.” Status: ended (source read 17 October 2026). Who it is for, in the agency's words: “If you make qualified energy-efficient improvements to your home after Jan. 1, 2023, you may qualify for a tax credit up to $3,200. You can claim the credit for improvements made through December 31, 2025.” How to apply: irs.gov (individuals do not apply to this agency directly)Internal Revenue Service (IRS), read 17 October 2026 |
Federal tax credit status, in the IRS's words
The IRS listed natural gas, propane and oil furnaces under the energy efficient home improvement credit, and its fact sheet on the 2025 law change says:
“The credit will not be allowed for any property placed in service after December 31, 2025.”
For a furnace placed in service before that December 31, 2025 end date, the IRS form instructions set the limit this way:
“$600 for natural gas, propane, or oil furnace or hot water boilers.”
Programs by state
| Illinois | Furnaces - $150 - $225 (open, as of 29 October 2026) “2. Install new, qualifying products between January 1, 2026 and December 31, 2026.”Nicor Gas — Sources read: 29 October 2026 |
|---|---|
| Indiana | Gas Furnace rebate (open, as of 29 October 2026) “Installation must be completed between January 1, 2026 and December 31, 2026.”CenterPoint Energy Indiana — Sources read: 29 October 2026 |
| Maryland | Weatherization Assistance Program (WAP) (open, as of 17 October 2026) “Application status: Open”Maryland Department of Housing and Community Development — Sources read: 17 October 2026 |
| Michigan | State Emergency Relief: Home Repairs; Weatherization Assistance Program (open, as of 22 October 2026) “Check eligibility and apply online using MI Bridges” Michigan pageMichigan Department of Health and Human Services — Sources read: 22 October 2026 |
| Minnesota | Fix Up Home Improvement Loan Program (a loan) “Loan amounts from $2,000 to $75,000”Minnesota Housing — Sources read: 22 October 2026 |
| Mississippi | Weatherization Assistance Program (WAP) (open, as of 17 October 2026) “To apply for Weatherization assistance, you will need to submit a pre-application through the”Mississippi Department of Human Services — Sources read: 17 October 2026 |
| New Jersey | South Jersey Gas furnace rebate; Elizabethtown Gas furnace rebate (open, as of 29 October 2026) “Invoice - A paid invoice dated between January 1 2025, and June 30 2027, indicating the type of equipment, installation date, purchase price, model number and serial number.”South Jersey Gas; Elizabethtown Gas — Sources read: 29 October 2026 |
| Ohio | Home Energy Savings Program (HOMES) “A: The eligible household must reach the energy savings threshold to participate in the HOMES program.”Ohio Department of Development — Sources read: 17 October 2026 |
| Oklahoma | Natural gas heating system rebates (open, as of 29 October 2026) “Rebates are limited and issued on a first-come, first-served basis until program funds are depleted.”Oklahoma Natural Gas — Sources read: 29 October 2026 |
| Pennsylvania | Gas Furnace Rebate (open, as of 29 October 2026) “*Program is open to UGI residential gas customers in Pennsylvania who install qualifying residential equipment prior to September 30, 2027, pending available funds.”UGI Utilities — Sources read: 29 October 2026 |
| Washington | Natural Gas Appliance Upgrading Rebate (open, as of 28 October 2026) “1. Rebates are effective through December 31st, 2026.”City of Ellensburg Gas Division — Sources read: 28 October 2026 |
| Wisconsin | HE+ HVAC Program Services; Weatherization Assistance Program “HE+ HVAC Program Services provides assistance to eligible homeowners when their primary heating system stops operating or is operating in an unsafe manner.” Wisconsin pageWisconsin Department of Administration, Division of Energy, Housing and Community Resources — Sources read: 17 October 2026 |
High efficiency furnace rebate?
Each gas utility sets its own efficiency line. Nicor Gas in Illinois pays by the furnace’s AFUE rating:
“≥ 97% AFUE Furnace - $225”
“≥ 95% AFUE Furnace - $150”
CenterPoint Energy Indiana starts one point higher:
“$200 back when you choose a furnace that's 96% efficient”
“$250 back when you choose a furnace that's 97% or better”
The City of Ellensburg, Washington sets a minimum of 96% AFUE for its gas furnace rebate of $1000.
Sources: Nicor Gas, Energy Efficiency Rebates for Your Home, read ; CenterPoint Energy Indiana residential rebate portal (run by CLEAResult), Gas Furnace, read ; City of Ellensburg (WA) Gas Division, Natural Gas Appliance Rebate Application & Agreement Form, read .
To see the AFUE rating of each furnace contractors propose, you can post the furnace job on InstaBids and compare written bids.
New furnace tax credit?
Not for a furnace installed now. The IRS listed gas, propane and oil furnaces under the energy efficient home improvement credit, and its form instructions say:
“You can’t claim energy efficient home improvement credits for expenditures or property placed in service after December 31, 2025.”
For a furnace placed in service by December 31, 2025, the instructions asked for its QMID and required the highest efficiency tier the CEE set for that year.
Sources: Internal Revenue Service (IRS), Energy Efficient Home Improvement Credit, read ; Internal Revenue Service (IRS), Instructions for Form 5695 (2025), read .
With no federal credit for a furnace put in now, you can still post the furnace replacement on InstaBids for written bids.
Rebate on furnace?
UGI Utilities in Pennsylvania pays this for a gas furnace:
“Purchase and install an ENERGY STAR® certified natural gas furnace in your home and receive a $500 rebate from UGI.*”
“*Program is open to UGI residential gas customers in Pennsylvania who install qualifying residential equipment prior to September 30, 2027, pending available funds.”
Oklahoma Natural Gas lists larger amounts when a gas furnace replaces electric heat:
“$2,900 rebate for replacing an electric heat pump with a new 95%+ efficient natural gas furnace and air conditioner.”
Sources: UGI Utilities, Gas Furnace Rebate, read ; Oklahoma Natural Gas, Rebate Information: Furnace (2026), read .
Before you send utility rebate paperwork, you can post the gas furnace job on InstaBids and ask for the model number in each bid.
Furnace replacement tax credit?
The IRS credit for 2025 furnace work ended for property placed in service after December 31, 2025, so a furnace put in during 2026 is not covered.
Some states pay toward a broken furnace through repair or weatherization programs instead; Michigan describes its State Emergency Relief home repairs this way:
“Eligible home repairs may include repair or replacement of a non-functioning furnace, hot water heaters or septic systems.”
Wisconsin’s HE+ HVAC program covers a primary heating system that stops working:
“HE+ HVAC Program Services can include repairs, or in some situations, a total replacement of an inoperable system.”
Sources: Internal Revenue Service (IRS), Fact Sheet FS-2025-05, Aug. 21, 2025, read ; Internal Revenue Service (IRS), Instructions for Form 5695 (2025), read ; Michigan Department of Health and Human Services, State Emergency Relief Home Repairs, read ; Wisconsin Department of Administration, Division of Energy, Housing and Community Resources, Assistance, read .
To compare written bids on swapping an old furnace for a new one, you can post the replacement job on InstaBids.
Furnace replacement rebate?
South Jersey Gas and Elizabethtown Gas in New Jersey pay up to $900.00 for swapping an older furnace for a condensing one, and both set this rule:
“Must replace a non-condensing gas furnace”
In Washington, the City of Ellensburg requires the new furnace to replace a gas appliance and caps its rebate:
“3. Appliance(s) must be upgraded from an existing natural gas appliance.”
“2. The rebate total is not to exceed 75% of the total equipment and installation costs.”
Sources: South Jersey Gas rebate portal (run by CLEAResult), Gas furnace non-condensing to condensing, read ; Elizabethtown Gas rebate portal (run by CLEAResult), Gas furnace non-condensing to condensing, read ; City of Ellensburg (WA) Gas Division, Natural Gas Appliance Rebate Application & Agreement Form, read .
To get written bids that list the furnace model and its efficiency rating, you can post the furnace job on InstaBids.
Rebate, tax credit, grant or weatherization: how they differ
Utility rebate: a gas company pays its own customers once a qualifying furnace is installed, such as Nicor Gas in Illinois at $150 to $225.
Repair grant: Michigan’s State Emergency Relief pays for essential furnace repairs, up to a lifetime maximum of $4,000 per family group.
Weatherization: income-based programs can include furnace work after an energy audit; Maryland lists it as:
“Furnace clean/tune, safety repairs, burner retrofit or replacement”
Loan: Minnesota Housing’s Fix Up loan lists furnaces among eligible projects, with loan amounts from $2,000 to $75,000.
Tax credit: the IRS energy efficient home improvement credit ended after December 31, 2025, as quoted above.
Electric-only federal rebate: DOE lists HEEHR for insulation, air sealing, ventilation and electric equipment, which leaves out a gas furnace; the panel upgrade page quotes DOE’s list. the electrical panel upgrade rebates page
Before you apply
- UGI asks for a copy of the invoice with the application, showing the maker, model number, quantity and a total price paid in full.
- Elizabethtown Gas asks for the AHRI certificate with the unit’s model number, capacity and efficiency ratings.
- “Photo - Must submit a photo of the old non-condensing equipment to be eligible for the rebate.”
- Oklahoma Natural Gas wants the application, the AHRI certificate, the purchase receipt and the contractor’s invoice within 180 days after installation.
- “2. Sign and submit this application and agreement form. Make sure to submit the application prior to new appliance installation.”
- Mississippi’s weatherization office asks owners to bring a deed:
- “A valid deed showing you as the owner of your home.”
- Ask contractors to list the model, efficiency rating and paperwork your program asks for in their written bid.
Cost, options and related pages
What a furnace replacement costs and how a heat pump compares with a gas furnace are on our cost and comparison pages, linked below.
Sources read:
- Internal Revenue Service (IRS), Energy Efficient Home Improvement Credit: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit, read 17 October 2026.
- Internal Revenue Service (IRS), Fact Sheet FS-2025-05, Aug. 21, 2025: https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb, read 17 October 2026.
- Internal Revenue Service (IRS), Instructions for Form 5695 (2025): https://www.irs.gov/instructions/i5695, read 21 October 2026.
- U.S. Department of Energy (DOE), Home Energy Rebates Program: https://www.energy.gov/cmei/scep/home-energy-rebates-program, read 17 October 2026.
- U.S. Department of Energy (DOE), How to Apply for Weatherization Assistance: https://www.energy.gov/cmei/scep/wap/how-apply-weatherization-assistance, read 17 October 2026.
- Michigan Department of Health and Human Services, State Emergency Relief Home Repairs: https://www.michigan.gov/mdhhs/assistance-programs/emergency-relief/home-repairs, read 22 October 2026.
- Michigan Department of Health and Human Services, Weatherization Assistance Program: https://www.michigan.gov/mdhhs/doing-business/weatherization, read 17 October 2026.
- Mississippi Department of Human Services, Weatherization Assistance Program: https://www.mdhs.ms.gov/wap/, read 17 October 2026.
- Maryland Department of Housing and Community Development, Weatherization Assistance Program: https://dhcd.maryland.gov/energy-home-repair/energy-grants-and-loans-residents/weatherization-assistance-program-wap, read 17 October 2026.
- Wisconsin Department of Administration, Division of Energy, Housing and Community Resources, Assistance: https://energyandhousing.wi.gov/Pages/CustomerResources/Assistance.aspx, read 17 October 2026.
- Minnesota Housing, Improve Your Home: https://www.mnhousing.gov/home/homeownership/improve-your-home, read 22 October 2026.
- Ohio Department of Development, Home Energy Savings Program: https://development.ohio.gov/individual/energy-assistance/energy-savings, read 17 October 2026.
- UGI Utilities, Gas Furnace Rebate: https://www.ugi.com/rebates-for-home/natural-gas/furnace/, read 29 October 2026.
- CenterPoint Energy Indiana residential rebate portal (run by CLEAResult), Gas Furnace: https://centerpointenergyindiana-residential-rebate.clearesult.com/gas-furnace-123, read 29 October 2026.
- South Jersey Gas rebate portal (run by CLEAResult), Gas furnace non-condensing to condensing: https://sjgsaveenergy-customer.clearesult.com/gas-furnace-95-non-condensing-to-condensing, read 29 October 2026.
- Elizabethtown Gas rebate portal (run by CLEAResult), Gas furnace non-condensing to condensing: https://etgsaveenergy-customer.clearesult.com/gas-furnace-95-non-condensing-to-condensing-1, read 29 October 2026.
- Oklahoma Natural Gas, Rebate Information: Furnace (2026): https://www.oklahomanaturalgas.com/media/ONG/EEPLearnMore/Homeowner/ONG-Rebate_App_EE_Furnace_Learn_2026.pdf, read 29 October 2026.
- Nicor Gas, Energy Efficiency Rebates for Your Home: https://www.nicorgas.com/ways-to-save/residential-savings/rebates.html, read 29 October 2026.
- City of Ellensburg (WA) Gas Division, Natural Gas Appliance Rebate Application & Agreement Form: https://www.ellensburgwa.gov/DocumentCenter/View/5748/Rebate-Application-Form---Appliance-Upgrading, read 28 October 2026.