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Oklahoma HVAC Rebates And Tax Credits
Oklahoma homeowners can still save up to $5,900 on HVAC upgrades in 2026 through utility rebate programs from OG&E and Oklahoma Natural Gas, even though federal tax credits under Sections 25C and 25D expired on December 31, 2025. This guide breaks down every rebate still available, who qualifies, and how to apply before funds run out.
Key Takeaways
- The federal 25C and 25D energy tax credits expired December 31, 2025 under the One Big Beautiful Bill Act, ending up to $3,200 in annual HVAC savings for homeowners.
- OG&E offers up to $3,000 per HVAC replacement for Oklahoma residential customers, plus rebates for insulation, smart thermostats, and duct sealing.
- Oklahoma Natural Gas provides up to $2,900 in rebates for furnace upgrades, electric-to-gas conversions, and qualifying appliances.
- You can still claim 2025 tax credits on your 2025 return using IRS Form 5695 if your equipment was installed and operational before the deadline.
- Utility rebates are issued on a first-come, first-served basis and can run out, so applying early in the year is important.
What Happened to Federal HVAC Tax Credits in 2026?
If you were planning to upgrade your heating or cooling system this year and counting on a federal tax break, the landscape has changed significantly. The two biggest residential energy incentives are no longer available for equipment installed after December 31, 2025.
The Big Beautiful Bill Act and Section 25C/25D Expiration
The One Big Beautiful Bill Act, signed into law in July 2025, accelerated the expiration of the Energy Efficient Home Improvement Credit (Section 25C) and the Residential Clean Energy Credit (Section 25D). Both credits were originally scheduled to run through 2032 under the Inflation Reduction Act. Instead, they ended seven years early.
Before expiration, Section 25C offered homeowners up to 30% of qualifying upgrade costs, with annual limits of $2,000 for heat pumps and $1,200 for other improvements like insulation and windows. According to the National Association of Home Builders, the IRS is expected to strictly interpret the termination rules, meaning equipment must have been fully installed and operational by December 31, 2025.
“This system might not cost $10,000 to $12,000. It might cost $16,000 to $18,000. But then we were immediately able to turn around and say, on your taxes when you file, you’re going to be able to claim the tax credit and get $3,000 off. That’s a huge incentive.” – Tucker Yarbrough, CFO, Yarbrough & Sons Heating, Cooling & Plumbing (Oklahoma)
That incentive is now gone for 2026 installations. The official IRS guidance on the One Big Beautiful Bill confirms that an expenditure is treated as made when original installation is completed, not when the equipment is purchased.
Can You Still Claim 2025 Credits on Your Tax Return?
Yes. If you had qualifying HVAC equipment installed and placed in service before December 31, 2025, you can still claim the credit when you file your 2025 tax return. You’ll need IRS Form 5695 (Residential Energy Credits) and should have the Qualified Manufacturer Identification Number (QMID) for the installed equipment. Consult a tax professional to make sure you meet all the documentation requirements.
What Oklahoma Utility Rebates Are Available for HVAC in 2026?
Here’s the good news. While federal credits are gone, Oklahoma’s utility companies continue offering meaningful rebate programs that can significantly reduce your out-of-pocket cost on HVAC upgrades. These rebates are separate from the federal government and operate on their own timelines and funding.
OG&E HVAC Replacement Rebates (Up to $3,000)
Oklahoma Gas and Electric offers substantial rebates for residential customers who replace their HVAC systems with qualifying high-efficiency equipment. According to OG&E’s residential rebate programs, current incentives include:
- HVAC replacement: Up to $3,000 per unit (maximum 2 units per year)
- Attic insulation: Up to $500
- Smart thermostat: $50 for ENERGY STAR certified models
- Windows: Up to $350 for ENERGY STAR rated windows
- Doors: Up to $200 for ENERGY STAR rated doors
- Duct and air sealing: Up to $300
To qualify, you must be an OG&E residential customer in Oklahoma living in a single-family home on a permanent foundation. Homes built in the last 10 years are not eligible for the HVAC replacement rebate. System replacements are eligible once every 20 years. If you’re also looking for ways to reduce your electricity costs, learn more about the OG&E Smart Hours Program for additional savings.
Oklahoma Natural Gas Furnace Rebates (Up to $2,900)
Oklahoma Natural Gas residential rebates offer some of the most generous gas equipment incentives in the state. Their 2026 rebate application is already available, and rebate amounts vary depending on the type of upgrade:
- New 95%+ efficient gas furnace or boiler: $550
- Electric resistance furnace replaced with gas furnace: $1,950
- Electric heat pump replaced with gas furnace and AC: $1,950
- Electric resistance furnace replaced with 95%+ efficient gas furnace: $2,500
- Electric heat pump replaced with 95%+ efficient gas furnace and AC: $2,500
These rebates are issued on a first-come, first-served basis until program funds run out. Applications must be submitted within 180 days of installation, and all work must be done by an Oklahoma-licensed contractor.
Summit Utilities Rebates
If your natural gas service comes through Summit Utilities rather than Oklahoma Natural Gas, rebates are also available for furnaces, water heaters, smart thermostats, dryers, and cooking ranges. Bonus rebates may apply when you install more than one qualifying appliance.
Oklahoma HVAC Rebate Comparison Table (2026)
| Program | Max HVAC Rebate | Eligible Equipment | Funding |
| OG&E | Up to $3,000/unit | High-efficiency AC, heat pumps | First-come, first-served |
| Oklahoma Natural Gas | Up to $2,900 | Gas furnaces, boilers, conversions | First-come, first-served |
| Summit Utilities | Varies | Gas furnaces, water heaters, appliances | First-come, first-served |
How Do You Qualify for OG&E HVAC Rebates in Oklahoma?
Understanding the eligibility requirements before you buy equipment can save you from a frustrating experience. OG&E has specific rules that determine whether your upgrade qualifies.
Eligibility Requirements
You must be a current OG&E residential customer in Oklahoma. The program applies to single-family homes, and the home must be on a permanent foundation. Multi-family homes, apartments, and new construction do not qualify. Your home also needs to be more than 10 years old to be eligible for HVAC replacement rebates.
All equipment must be installed by an Oklahoma-licensed HVAC professional. The rebate application and invoice must be submitted within 30 days of installation. Understanding how SEER2 efficiency ratings affect your Oklahoma bills can help you choose equipment that meets both rebate and performance requirements.
Application Process and Deadlines
OG&E requires proof of purchase with a valid invoice that includes the installation date, equipment details, quantity, price, and contractor information. Your qualifying HVAC replacement must have an invoice dated between January 1 and December 1 of the program year. All information on the invoice must match the rebate application exactly, or it won’t be processed.
“Ensuring new furnaces are more efficient will save households money on their heating bills while reducing pollution.” – Andrew deLaski, Executive Director, Appliance Standards Awareness Project (ASAP)
Berneta Haynes, Senior Attorney with the National Consumer Law Center, also emphasized that updated furnace efficiency standards benefit renters specifically because “the standards will end the sale of very inefficient heating systems that are often installed in rented homes.”
Oklahoma Natural Gas Rebate Breakdown for 2026
Oklahoma Natural Gas has structured its rebate program to reward homeowners who switch from less efficient electric heating systems to high-efficiency natural gas equipment. The larger rebates are designed to offset the higher upfront cost of conversion projects.
Furnace and Boiler Rebate Amounts
The baseline rebate is $550 for installing a new natural gas furnace or boiler with 95% AFUE (Annual Fuel Utilization Efficiency) or higher. This applies to straightforward replacements where you’re upgrading an existing gas furnace to a more efficient model. A new DOE standard taking effect in 2028 will require all new residential furnaces to meet a 95% AFUE minimum, which means installing a high-efficiency unit now puts you ahead of that curve.
Electric-to-Gas Conversion Rebates
The largest rebates are reserved for homeowners converting from electric heating to natural gas. Replacing an electric resistance furnace with a standard gas furnace qualifies for $1,950, and that jumps to $2,500 if the new gas furnace meets the 95%+ efficiency threshold. Replacing an electric heat pump with a new gas furnace and air conditioner combination also qualifies for $1,950 to $2,500, depending on furnace efficiency.
If you’re weighing whether a gas or electric system is the better fit, our guide on gas vs. electric furnaces for Oklahoma homes walks through the cost and efficiency differences.
Water Heater and Appliance Rebates
Beyond HVAC, Oklahoma Natural Gas also offers rebates on natural gas water heaters, dryers, and other qualifying appliances. The combined maximum across all categories reaches up to $2,900, making it worthwhile to plan multiple upgrades at once if you’re already working with a contractor.
How Much Can Oklahoma Homeowners Actually Save in 2026?
Even without federal tax credits, the combination of utility rebates and long-term energy savings makes 2026 a solid year to upgrade your HVAC system. Here’s how the numbers work out.
Stacking Utility Rebates Together
If you’re an OG&E electric customer and also have Oklahoma Natural Gas service, you may be able to claim rebates from both utility programs on the same project. For example, installing a high-efficiency gas furnace could qualify for the Oklahoma Natural Gas rebate (up to $2,500), while a new air conditioning system on the same project could qualify for an OG&E rebate (up to $3,000). Combined, that’s potentially $5,500 in savings on a single HVAC replacement project.
Adding attic insulation ($500 from OG&E) and a smart thermostat ($50 from OG&E) can push your total above $6,000 in rebate value. Thinking about replacing your AC and furnace at the same time is often the most cost-effective approach when rebates are available for both.
Long-Term Energy Savings Beyond Rebates
The U.S. Department of Energy reports that upgrading your HVAC can reduce monthly utility bills by 20 to 40%. For an Oklahoma City household spending $250 per month on heating and cooling, that translates to $600 to $1,200 in annual savings. ENERGY STAR-certified systems can deliver 10 to 30% savings on heating and cooling costs compared to standard models, according to the Department of Energy.
One Oklahoma City family who upgraded from a 15-year-old AC unit to a high-efficiency system saw their summer cooling costs drop by 35%, proving that the upfront investment pays off within just a few years. Moving from an older SEER 10-13 system to a high-SEER2 unit commonly saves $300 to $900 per year in cooling-dominant climates like Oklahoma’s.
Keeping your new system running at peak performance is just as important as the initial upgrade. Scheduling regular HVAC maintenance protects your investment and helps you maintain those energy savings year after year. If you install a heat pump, following a heat pump maintenance checklist ensures it performs efficiently through Oklahoma’s hot summers and cold winters.
Your Next Step
Federal HVAC tax credits may be gone for 2026, but Oklahoma homeowners still have strong options. Between OG&E’s rebates of up to $3,000, Oklahoma Natural Gas incentives up to $2,900, and the long-term energy savings from a high-efficiency system, upgrading your HVAC this year still makes financial sense.
The most important thing to remember is that utility rebates are funded on a first-come, first-served basis. Once the money runs out for the year, it’s gone. If you’re considering an upgrade, getting started sooner gives you the best chance of securing those rebates.
Have questions about which rebates apply to your situation or need help choosing the right system? Contact AAdvantage Heating & Air Conditioning. We’ll walk you through the options, help you understand your eligibility, and make sure your installation meets all the requirements for maximum savings.
