HVAC Tax Credits and Rebates in 2026: What Delaware Homeowners Can Claim

The federal 25C and 25D energy tax credits ended for equipment placed in service after December 31, 2025. In 2026, Delaware homeowners can use the programs that are still active, including Energize Delaware incentives, utility rebates, and the federal Home Energy Rebates that run through the state. Program details change, so verify before you buy. 

On this page:

• What Changed: The Federal Credits Ended

• Installed in 2025? Claim It Now

• Delaware's Programs in 2026

• How to Actually Capture a Rebate

• FAQs

If you've been reading that a federal tax credit will help pay for your new heat pump this year, you've been reading an article written before the law changed.

Here's the current picture for Delaware, from what happened to the federal credits to the state programs that are very much alive.

What Changed: The Federal Credits Ended

For a decade, the Energy Efficient Home Improvement Credit (Section 25C) and the Residential Clean Energy Credit (25D) put federal money behind high-efficiency HVAC, water heaters, and home upgrades. Federal legislation passed in July 2025 terminated both for property placed in service after December 31, 2025.

The phrase that decides everything is "placed in service." What matters is when the equipment was installed and operational, not when you signed the contract or paid the deposit. A system installed in 2026 gets no federal credit regardless of when it was ordered.

That's the change. What it didn't touch: state and utility programs, and the federally funded Home Energy Rebates that flow through state energy offices. In Delaware, those are now the whole game.

Installed in 2025? Claim It Now

If your qualifying furnace, heat pump, AC, or water heater was up and running by December 31, 2025, that credit is still yours, even though the April 15, 2026 filing deadline has passed.

If you didn’t claim it on your 2025 return, you can generally still do so by filing an amended return (Form 1040-X) with IRS Form 5695 within three years of your original filing date. Gather three documents now: the installation invoice showing the in-service date, the AHRI certificate for the equipment match, and the manufacturer's certification statement that the model qualified. Your installer can supply all three; Horizon customers can request them with one call. 

This is educational information, not tax advice, so run your specific situation past your tax professional. But don't let a credit you already earned expire in a drawer.

Delaware's Programs in 2026

Energize Delaware

Delaware's Sustainable Energy Utility, better known as Energize Delaware, is the center of gravity for state efficiency incentives: home energy assessments, efficiency and heat pump incentives, and low-interest financing for qualifying upgrades. Programs are structured around an assessment-first model for the whole-home pathways, which rewards planning the project rather than rushing it.

Utility rebates

Delmarva Power runs residential energy efficiency offerings for Delaware customers, and municipal electric customers (Newark, Dover, and the other DEMEC towns) should check their own utility's programs, which sometimes beat the big utility's. The pattern statewide: rebates concentrate on heat pumps, smart thermostats, and weatherization.

The federal Home Energy Rebates in Delaware

The IRA's two rebate programs survived the 2025 law: HEAR (appliance and heat pump rebates for households under income caps, around 150% of area median income) and HOMES (rebates keyed to measured whole-home energy savings). Both run through state energy offices on state timelines; in Delaware, that's the DNREC energy office's Home Energy Rebate programs.

For income-qualified households, Delaware's Weatherization Assistance Program remains the other door worth knowing, covering efficiency improvements at no cost for eligible residents.

How to Actually Capture a Rebate

Check program status before you sign. Rebate programs are budget-limited and first-come; a program that's open in March can be waitlisted by August.

Confirm the equipment qualifies. Incentives key to specific efficiency tiers, and the difference between two similar-looking systems can be the entire rebate. This is a five-minute check for your contractor and a research project for anyone else.

Use a participating contractor where required. Several programs, especially assessment-based ones, only pay when a registered or participating contractor does the work.

Keep every document. Invoices, model numbers, assessment reports, and application confirmations. Rebate processing is paperwork processing.

Wondering what your project actually qualifies for this season? Matching equipment tiers to live Delaware programs is something our comfort advisors do every week — it's built into the estimate, not an extra. Horizon has served Delaware since 1987 with upfront pricing and free replacement estimates. Call 800-642-4419 or start with our heat pump replacement team.

Get Every Dollar You Qualify For

Between Energize Delaware, utility offerings, and the state-run federal rebates, Delaware still has real money on the table in 2026; it just lives in more places than it used to. Horizon tracks the programs so you don't have to, and our own current offers stack on top of whatever public programs you capture.

Call 800-642-4419 or book a free estimate online today.

Frequently Asked Questions

Are there still federal HVAC tax credits in 2026?

Not for new installations. The 25C and 25D credits ended for equipment placed in service after December 31, 2025. What remains federal is the Home Energy Rebates program, which survived and runs through state energy offices, plus whatever your state and utility offer directly.

Can I still claim my 2025 HVAC installation?

Yes, if the equipment was installed and operational by December 31, 2025. The standard filing deadline was April 15, 2026; if you missed it, you can generally still claim the credit by filing an amended 2025 return (Form 1040-X) with IRS Form 5695 within three years. You'll want the invoice showing the installation date, the AHRI certificate, and the manufacturer's certification statement. Confirm specifics with your tax professional.

What rebates does Delaware offer for heat pumps?

Delaware's incentives center on Energize Delaware's efficiency and heat pump programs, Delmarva Power's residential offerings, and the state-administered federal Home Energy Rebates. Amounts and eligibility change with program budgets, so check the current program pages, or have your contractor confirm what's live before you commit.

What is Energize Delaware?

It's the working name of Delaware's Sustainable Energy Utility, an independent nonprofit created by the state to run efficiency programs: home energy assessments, heat pump and efficiency incentives, and low-interest energy financing. It's the first stop for most Delaware homeowners pursuing an efficiency project in 2026.

What are the IRA Home Energy Rebates?

Two federally funded programs that survived the 2025 law: HEAR provides rebates on heat pumps and electric appliances for income-qualified households, and HOMES rewards whole-home projects based on measured energy savings. Both are administered by each state's energy office, on the state's timeline and rules.

Do I need a specific contractor to qualify for rebates?

Often, yes. Assessment-based and whole-home programs typically require participating or registered contractors, and even simple equipment rebates require documentation your installer generates. Confirm your contractor's participation before work begins so eligibility never becomes a post-project surprise.