What HVAC rebates can Minnesota homeowners get in 2026?

Minnesota homeowners still have real HVAC incentives available in 2026 — but the landscape changed at the end of 2025, and some of what you'll read elsewhere is out of date. The short version: the federal 25C tax credit is gone for 2026 installs, while Xcel Energy heat pump rebates and CenterPoint Energy's furnace rebate remain strong. Here's how the pieces fit together (figures verified on the utilities' own sites, July 2026).

Amounts change. Exact dollar amounts and eligibility rules change between program years and by utility territory. The figures below are 2026 program references verified July 2026 — we confirm the current numbers for your address and equipment at the time of your estimate, and never guarantee a specific savings figure in advance.

The federal 25C tax credit ended December 31, 2025

The federal Energy Efficient Home Improvement Credit (25C) — the "30% up to $2,000" heat pump credit — is not available for equipment placed in service after December 31, 2025 (Public Law 119-21; IRS FS-2025-05). If your system was installed and running by that date, you can still claim it on your 2025 tax return. For 2026 projects, plan around utility rebates instead.

Xcel Energy heat pump rebates (electric customers)

Mankato and North Mankato are Xcel Energy electric territory, and Xcel's 2024–2026 Minnesota program pays real money on qualifying heat pumps installed by a participating contractor with a quality installation: up to $2,000 on a cold-climate ductless mini-split ($1,600 standard mini-split), tiered rebates on ducted cold-climate systems for electric-heat customers, and central AC rebates up to $450. Add qualifying insulation and air-sealing first and Xcel pays a $600 bonus automatically when the heat pump follows within two years.

CenterPoint Energy furnace rebate (natural gas customers)

CenterPoint Energy is the natural gas utility for Mankato, North Mankato, and most of the metro. Its 2026 residential program pays $1,000 on a replacement forced-air furnace rated 97%+ AFUE (application due by December 31, 2026). Some outlying towns are served by Minnesota Energy Resources instead, which runs its own rebates — we confirm which utility serves your address and what it currently pays.

HEAR / Save Energy Minnesota: not launched yet

Minnesota's income-qualified federal Home Energy Rebates (HEAR) have not launched — the state is still waiting on federal approval with no estimated launch date (mn.gov, updated June 2026). Important: the program does not allow retroactive rebates, so don't start a project counting on HEAR money before the state officially opens applications. We'll flag it the moment it's real.

How the programs stack — and why a heat pump wins

The biggest savings don't come from any single program; they come from combining them. A cold-climate heat pump is the equipment that unlocks the most incentives at once, which is why it's the centerpiece of the Minnesota Rebate & Savings Estimator. We identify every program you qualify for, recommend equipment that captures the most, and show your net cost before you commit.

Want a quick estimate? Our interactive Rebate & Savings Estimator shows the real Xcel, CenterPoint, and Minnesota programs that apply to the equipment you're considering — plus an estimated total incentive range — in a few clicks.

Already have a quote? Get a free second opinion — we'll make sure it captures every rebate you're entitled to, not just the obvious one.

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