Rebates & Incentives
Minnesota HVAC Rebates & Tax Credits: What You Can Claim
Minnesota homeowners leave real money on the table every year by not claiming HVAC incentives. Utility rebates from Xcel Energy and CenterPoint Energy can knock hundreds to a few thousand dollars off a high-efficiency upgrade — you can see how the pre-rebate numbers look with our HVAC cost estimator — if you know what to claim and who files it. (One big change for 2026: the federal 25C tax credit expired at the end of 2025 — details below.)
Program amounts change yearly, so treat the figures below as a map of what exists and verify current amounts with your utility or contractor before buying. Not sure which ones apply to you? Our Minnesota rebate checker matches your utility and equipment to the programs you likely qualify for in about 20 seconds.
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Minnesota HVAC Rebate Checker
Tell us your utility and what you're installing, and see the Xcel, CenterPoint, and federal rebate programs you likely qualify for.
Utility rebates (Xcel Energy & CenterPoint)
Both major Twin Cities utilities pay rebates on qualifying high-efficiency equipment. Electric rebates typically come from Xcel (AC, heat pumps, smart thermostats) and gas rebates from CenterPoint (furnaces, boilers). Typical categories:
- High-efficiency furnaces (95%+ AFUE) — commonly $100–$500
- High-efficiency central AC — commonly $100–$500
- Air-source and cold-climate heat pumps — commonly $500–$2,000+
- Smart thermostats — commonly $25–$75
- AC tune-up rebates in some program years
Federal tax credit (25C) — expired at the end of 2025
Important update: the federal Energy Efficient Home Improvement Credit (25C) was ended early by 2025 legislation and is no longer available for equipment placed in service after December 31, 2025. Through 2025 it covered 30% of qualifying cost, capped at up to $600 for a qualifying AC or furnace and up to $2,000 for a qualifying cold-climate heat pump.
If you installed qualifying equipment on or before December 31, 2025, you may still claim it on your 2025 federal return (IRS Form 5695) — a tax professional can confirm. For any 2026 project, do not count on a federal credit; focus on the utility rebates above and the pending state program below. Our rebate database tracks the current status of each program with links to the official source.
The pending Minnesota state program (HEAR)
Minnesota is expected to launch federally funded Home Energy Rebates (often called HEAR) for income-qualified households, which would add incentives for heat pumps and efficiency upgrades. As of this writing the program has not opened to applications in Minnesota and no start date has been announced, so treat it as pending — don't factor it into a purchase until the Department of Commerce opens it. Check the rebate database for the latest verified status.
How to stack what's available
- Combine an electric-utility rebate (Xcel) with a gas-utility rebate (CenterPoint) on a dual-fuel system
- Ask each contractor which specific model numbers qualify — 'high efficiency' isn't enough
- Confirm in writing who files the rebate paperwork (good contractors handle it)
- Keep the AHRI certificate and invoice for your records
- Income-qualified households may qualify for enhanced utility rebates and the pending state program — worth asking your utility
Turn this guide into your own numbers
Free interactive tools that personalize everything above in seconds.
Tell us your utility and what you're installing, and see the Xcel, CenterPoint, and federal rebate programs you likely qualify for.
Open the toolSee a real Twin Cities price range for a new furnace, AC, or heat pump before you talk to anyone.
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Use these free tools and guides to plan your project — then gather your own written quotes from local contractors and compare them with confidence.
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FAQ
Related questions
Do rebates apply to repairs?
Generally no — rebates target new high-efficiency equipment and sometimes tune-ups. Repairs don't qualify, which is one factor in repair-vs-replace math for older systems.
Who files the rebate paperwork?
Usually the installing contractor files utility rebates on your behalf. The federal 25C credit — available only for equipment installed through the end of 2025 — was claimed by the homeowner on their own federal return using IRS Form 5695. It is not available for 2026 installations.
Do heat pumps really get the biggest incentives?
Heat pumps still draw the largest utility rebates in Minnesota, which is a big part of why cold-climate heat pumps have surged here. Note that the federal credit that once added up to $2,000 expired at the end of 2025, so a 2026 heat pump relies on utility rebates (and the pending state program).