Published July 23, 2026 • 9 min read
- You can finance it. Salmon HVAC offers HVAC financing with a short online application and fast decisions, so a new system fits a monthly budget instead of a lump sum.
- The federal 25C tax credit is gone. It expired for equipment installed after December 31, 2025 — a 2026 system does not qualify.
- Utility rebates still apply. Rocky Mountain Power Wattsmart pays up to $2,000 on qualifying heat pumps; Enbridge Gas ThermWise rebates apply to high-efficiency furnaces.
- Stack them. Finance the upfront cost, then use your rebate to pay down the balance. Call (801) 397-0030 or apply for financing.
A heating and cooling system is one of the biggest purchases most Northern Utah homeowners will make for their house — and it rarely happens on a convenient schedule. The furnace quits in January. The air conditioner dies in an August heat wave. Suddenly you're choosing between a $6,000, a $9,000, or a $14,000 project, and you'd like to make a smart decision rather than a panicked one.
The good news is that you don't have to pay for it all at once, and you don't have to settle for the cheapest unit to keep the payment manageable. This guide covers the three things that actually determine what you'll pay in 2026: financing (how you spread the cost), rebates (money that comes back to you), and the federal tax credit (which has changed dramatically this year). We'll also show a realistic monthly-payment example so the numbers feel concrete.
The 2026 tax-credit reality: the 25C credit has expired
Let's start with the change that surprises the most homeowners. For several years, the federal 25C Energy Efficient Home Improvement Credit gave homeowners up to $2,000 back on a qualifying heat pump and up to $600 on a high-efficiency furnace or AC. Under the One Big Beautiful Bill Act signed in 2025, that credit was terminated for any equipment placed in service after December 31, 2025.
In plain terms: a new HVAC system installed in 2026 does not qualify for the federal 25C tax credit. There is no federal HVAC tax credit for the equipment itself this year.
The one exception is timing. If you installed qualifying high-efficiency equipment on or before December 31, 2025, you can still claim the 25C credit on your 2025 tax return (the one you file in 2026). If that's you, keep your invoice and the manufacturer's certification statement and talk to your tax preparer. For any project happening now, though, plan as if the federal credit is off the table — because it is. Always confirm your own situation with a qualified tax professional.
What Utah homeowners can still save on in 2026
The federal credit is gone, but the local incentives that most Utah homeowners actually used are still here. These come from the utilities, not the IRS, and they're often easier to claim.
Rocky Mountain Power Wattsmart (electric)
If you're putting in a heat pump, this is the big one. Rocky Mountain Power's Wattsmart Homes program pays cash rebates on qualifying high-efficiency electric equipment:
| Upgrade | Rebate (up to) |
|---|---|
| Air-source heat pump | $1,700 |
| Dual-fuel, ductless, or ground-source heat pump | $2,000 |
| Smart thermostat add-on | $100 |
Actual amounts depend on the equipment's efficiency and your configuration, and applications are typically submitted within 90 days of installation through the Wattsmart portal at rockymountainpower.net. We handle a lot of this paperwork with our customers so the rebate doesn't slip through the cracks. For the full breakdown, see our complete 2026 guide to Utah heat pump rebates and tax credits.
Enbridge Gas ThermWise (natural gas)
If you're staying with — or upgrading to — a high-efficiency gas furnace, Enbridge Gas (formerly Dominion Energy in Utah) runs the ThermWise program. It offers rebates on qualifying high-efficiency furnaces based on their AFUE rating, plus weatherization measures like attic insulation and air sealing that make any system work less hard. Rebate amounts change over time, so confirm the current offer at thermwise.com or the ThermWise hotline at 1-877-932-0610 before you buy.
What about the federal Home Energy Rebates (HEAR)?
You may have read about large federal Home Energy Rebates (the HEAR and HOMES programs) that promised up to $8,000 toward a heat pump for income-qualified households. Utah's Office of Energy Development was approved for this funding, but because of federal funding changes the program is not currently available to Utah homeowners. We keep an eye on its status; if it launches, we'll help eligible customers apply. For now, don't count on it when you're budgeting — build your plan around the utility rebates above, which are real and active today.
HVAC financing options in Utah
Financing simply means spreading the cost of your system over monthly payments instead of paying the whole amount on day one. For most households, that's the difference between installing the efficient system that lowers utility bills for the next 15 years and settling for a bare-minimum unit to keep the check small. Here are the paths Utah homeowners use most.
1. Contractor financing (through Salmon HVAC)
This is the most convenient option because it's built into the project. Salmon HVAC offers financing through Optimus, a program administered by EGIA (the Electric & Gas Industries Association) that's designed specifically for HVAC contractors and their customers. The application is a short online form, decisions come back quickly, and once you're approved we coordinate the install and you start monthly payments — no large upfront cost. You can apply for financing on our site in a few minutes.
2. Home equity (HELOC or home equity loan)
If you have equity in your home, a home equity line of credit (HELOC) or home equity loan often carries a lower interest rate than unsecured financing because it's secured by the house. The trade-off is a longer application through your bank or credit union and the fact that your home is collateral. For a large whole-system replacement, it's worth a phone call to your lender to compare.
3. Manufacturer promotional financing
Equipment brands periodically run promotional offers — deferred interest or low-APR terms — on qualifying systems, especially during shoulder seasons. These can be excellent when the promotion fits your timeline, but read the terms carefully: deferred-interest plans can charge back-dated interest if the balance isn't paid off within the promo window. Ask us what's currently available when you get your quote.
4. Personal loans and credit cards
An unsecured personal loan from a bank or credit union can work for a mid-size repair or partial replacement, and it doesn't put your home on the line. Credit cards should generally be a last resort for a project this size — the interest rates are high — unless you have a genuine 0% introductory offer you can pay off in time.
| Option | Best for | Watch out for |
|---|---|---|
| Contractor financing (Optimus/EGIA) | Fast, all-in-one approval tied to the install | Compare the rate to home equity if you have it |
| HELOC / home equity loan | Lowest rates on large replacements | Home is collateral; slower to set up |
| Manufacturer promo financing | Deferred/low-interest during promotions | Back-dated interest if not paid in the promo window |
| Personal loan | Mid-size projects without using home equity | Higher rate than secured options |
| Credit card | Small repairs or true 0% intro offers only | High ongoing interest — avoid for full systems |
What a monthly payment actually looks like
Numbers make this real. Your exact payment depends on how much you finance, the term length, and the rate you're approved for — but here's an illustration for a $12,000 system at a sample 9.99% APR, showing how the term changes the monthly payment and the total interest:
| Term | Approx. monthly payment | Approx. total interest |
|---|---|---|
| 36 months | ~$387 | ~$1,940 |
| 60 months | ~$255 | ~$3,300 |
| 120 months | ~$159 | ~$7,020 |
These figures are illustrative, not a quote — real rates and terms are set during your application. But the pattern always holds: a longer term lowers the monthly payment and raises the total interest, while a shorter term costs more each month and less overall. The right choice is the one that keeps the payment comfortable without stretching it out longer than you need to.
Here's where stacking pays off. Say you install a qualifying heat pump and finance the $12,000. A few weeks after installation, your $2,000 Rocky Mountain Power rebate arrives. Apply it directly to the loan principal and you've knocked roughly a sixth off the balance — lowering either your payment or your payoff time — without ever having fronted that cash. That's the practical reason we tell customers to finance and chase every rebate, not one or the other.
How to decide what to install (before you finance it)
Financing is the last step, not the first. The money question is easier once you know what the house actually needs. A few guides worth reading before you commit:
- For real 2026 price ranges by system type, see our Utah HVAC replacement cost guide.
- Deciding between a heat pump and a traditional AC-plus-furnace setup? Our 10-year cost comparison for Utah homes runs the numbers.
- Considering a heat pump specifically? Start with our Utah heat pump rebates guide — the rebates change the math.
- Cooling a hard-to-reach room or an addition? A ductless mini-split may cost less than extending ductwork.
When you're ready, our team will size the system correctly, quote it upfront, and walk you through the financing and rebate options that fit — including our heat pump, furnace installation, and AC installation services.
How to apply for financing with Salmon HVAC
- Get a quote. Request a free quote or call (801) 397-0030 so we can size the right system and give you an upfront price.
- Apply online. Use the secure application on our financing page. It takes just a few minutes, and decisions are returned quickly.
- Choose your terms. Once approved, you'll see the available payment options and pick the one that fits your budget.
- Schedule the install. We coordinate the installation, then help you file for any Rocky Mountain Power or Enbridge Gas rebates you qualify for.
- Apply your rebate. When the rebate arrives, put it toward your balance to lower your payment or pay off faster.
Have questions before you apply? Send us a message or call the office — we're happy to walk through your options with no pressure.
Get the Right System Now — Pay Monthly.
Salmon HVAC has kept Northern Utah comfortable since 1979. Get an honest quote, flexible financing, and help claiming every rebate you qualify for.
Frequently Asked Questions
Can I finance a new HVAC system in Utah?
Yes. Most Utah HVAC contractors, including Salmon HVAC, offer financing so you can spread the cost of a new furnace, air conditioner, or heat pump over monthly payments instead of paying the full amount upfront. Salmon HVAC's financing runs through Optimus, an EGIA program built for HVAC projects, with a short online application and a fast decision. You can also finance through a home equity line of credit, a personal loan, or manufacturer promotional offers.
Is there still a federal HVAC tax credit in 2026?
No. The federal 25C Energy Efficient Home Improvement Credit, which offered up to $2,000 for a qualifying heat pump and smaller amounts for high-efficiency furnaces and ACs, expired for equipment placed in service after December 31, 2025 under the One Big Beautiful Bill Act. A system installed in 2026 does not qualify. If you installed qualifying equipment on or before December 31, 2025, you may still claim it on your 2025 tax return. Confirm your situation with a tax professional.
What HVAC rebates can Utah homeowners still get in 2026?
Utility rebates are still active. Rocky Mountain Power's Wattsmart Homes program offers up to $1,700 for a qualifying air-source heat pump and up to $2,000 for a dual-fuel, ductless, or ground-source heat pump, plus up to $100 for a smart thermostat. Enbridge Gas (formerly Dominion Energy) offers ThermWise rebates on high-efficiency gas furnaces and weatherization. The federal Home Energy Rebates (HEAR) program has been approved for Utah but is not currently available to homeowners.
Can I use financing and rebates together?
Yes, and it's usually the smartest approach. Financing covers your upfront cost so you can install the right system now, while utility rebates from Rocky Mountain Power or Enbridge Gas arrive after installation and can be applied to pay down the balance. The two are separate programs, so qualifying for financing does not affect your rebate eligibility.
How much does a new HVAC system cost per month with financing?
It depends on the amount financed, the term length, and the rate you're approved for. As an illustration, a $12,000 project financed over 60 months at a sample 9.99% APR is roughly $255 per month, while a 120-month term lowers the monthly payment but increases total interest. Salmon HVAC will show you the exact terms during the application so you can pick a payment that fits your budget.
