HVAC Rebates and Tax Credits in California: What to Check

By Proair Air Conditioning Services, CSLB C-20 License #776028. Published October 30, 2026. Updated October 30, 2026.

Which HVAC rebates in California are still open?

Here is what we found for South Gate homes, checked in October 2026. Treat every line as a snapshot. Funding can run out without much notice, so confirm the status with the program before you buy.

Start with the name on your bill

Utility programs follow your account, not your city limits. In South Gate, electricity comes from Southern California Edison and gas comes from SoCalGas. Look at the top of your bill and at any line naming an electricity provider, then search only the programs tied to those names.

Neighboring cities vary. Paramount and most of the area share SCE and SoCalGas, but Pasadena and Anaheim run their own electric utilities, and Long Beach runs its own gas system. Rebate lists written for other cities can mislead you.

What the SoCalGas 2026 rebate asks for

This is the one to read closely if you are replacing a gas furnace. The 2026 application lists furnace rebates by efficiency: Tier I at 92% to 94% AFUE, $1.40 per kBtuh; Tier II at 95% to 96%, $10 per kBtuh; Tier III at 97% or above, $25 per kBtuh. Confirm the figures on the current form.

• Equipment bought and installed in calendar year 2026
• Application postmarked by December 31, 2026, first come, first served until funds run out
• A copy of your current SoCalGas bill
• Paid receipts or proof of purchase
• Proof the permit closed, required before a furnace rebate is paid

That permit line matters. An unpermitted furnace can lose the rebate on paperwork alone, so ask for the permit in writing before work starts. Our guide to furnace replacement cost shows where permits fit in a quote.

What those furnace tiers work out to

The jump between tiers is steep. Here is the simple multiplication for a 60 kBtuh furnace, an example size only. Check how the form counts kBtuh, and confirm the rates with SoCalGas.

That spread can change which furnace makes sense. A 92% unit earns little and an 80% unit earns nothing. Set the rebate against the extra cost of a condensing furnace, vent and drain included. SoCalGas also asks for an ENERGY STAR certified furnace and a licensed contractor, and limits this rebate to one per household.

Count back from December 31

The calendar can beat you even if funds last. The furnace has to be bought and installed in 2026, and proof the permit closed has to go in with the application. That means the city inspection and any ECC-Rater (formerly called a HERS rater) visit come first. South Gate’s permit counter works Monday to Thursday, and City Hall is closed Fridays. Get a realistic finish date before you rely on this rebate.

Other HVAC lines on the same form

Three more items on the 2026 application touch heating and cooling. Amounts are as listed, and a separate SoCalGas Marketplace shows lower insulation figures, so confirm which offer you are reading.

• Smart thermostat: $75 for a qualifying ENERGY STAR certified model that works with a gas furnace.
• Attic insulation: from $1.45 per square foot at R-11 up to $3.00 at R-60, added to existing insulation, in a home with a natural gas furnace.
• Wall insulation: $1.65 per square foot for blow-in insulation in a pre-1988 home with no existing wall insulation and a natural gas furnace. South Gate’s median build year is 1952, though SoCalGas goes by the tax assessor’s effective year built.

What happened to the big heat pump money?

Demand outran it. TECH Clean California states that HEEHRA single-family rebates were fully reserved as of February 24, 2026, and that later reservation requests go on a waitlist. A waitlisted project qualifies only if the heat pump is installed after the reservation is approved, so installing first can cost you the rebate.

Southern California ran out sooner. TECH lists January 7, 2026 for Central and Southern California single-family funds, and it says income verification applications are no longer accepted statewide.

GO ZERO, run by South Coast AQMD, is the one to watch. It paused new home applications after the single-family portal closed in September 2026, and its board approved Phase 2 funding of up to $60.2 million on October 2, 2026. The portal relaunch was still listed as forthcoming when we checked, so confirm the rules and amounts before you plan around it.

South Coast AQMD’s August 2026 release put the earlier phase at $1,000 to $2,000 per unit for single-family homes, or up to $3,000 in overburdened communities. We did not find Phase 2 amounts, so do not assume they match.

The federal credit follows the install date

The IRS says the credit belongs to the tax year the property is installed, not merely purchased, and that excess credit cannot move to future years. A deposit paid in 2025 on a system installed in 2026 is a question for your tax preparer, not something to assume.

Is there help for income-qualified homes?

Yes, and it runs separately from the rebates above. SCE lists its Energy Savings Assistance program as free to income-qualified renters and homeowners, first come, first served until funding runs out. Its flyer names central AC or heat pump replacement and window or wall AC replacement among the offerings. Confirm what your home qualifies for with SCE.

Questions to ask before you sign

Run these with any contractor, and with the program itself.

1. 1

   Confirm status today

   Open the program’s own page or call it. Rebate lists on third-party sites go stale.

2. 2

   Check timing rules

   Some programs need approval before install. Others want proof after.

3. 3

   Match the exact model

   Get the model number and efficiency rating in writing and compare it to the program’s list.

4. 4

   Ask who applies

   Find out what is on you and what the contractor must sign. Licensed-contractor certification may be required.

5. 5

   Keep your records

   Save the bill, receipts, permit closure and any approval email in one place.

If you are weighing a heat pump installation against a furnace replacement, price both at full cost, then apply only the incentives you have confirmed. Income-qualified households should also look at SCE’s Energy Savings Assistance program. Renters may need owner approval, and an owner co-payment may apply to central equipment.

Tax questions belong with your preparer. Our AC replacement page covers the equipment side of the choice.

When the system fails before a program opens

A dead furnace in January cannot wait on a waitlist. If you have no safe heat or cooling, decide on the full price and claim whatever is open afterward. If the old system still runs safely, you have a real choice: a repair price buys time while a program answers. Ask for both numbers.

Where that leaves a South Gate homeowner

Plan on no federal credit and no state heat pump money, then see what your own bill opens up. For most South Gate gas customers that means SoCalGas through December 31, 2026 if funds last, plus SCE’s program if your income qualifies. Confirm every status with the program itself. Price the system at full cost first, and call us for that number. We will look at your home, explain what the job needs and give you a clear, upfront quote before any work starts. The rebate paperwork stays with you.