Utah HVAC Rebates in 2027: What's Left After the Federal Tax Credit Ended

First, the big change: the federal 25C credit ended

Let's start with the thing most buyers get wrong. For several years the federal 25C Energy Efficient Home Improvement Credit returned up to $2,000 on a qualifying heat pump and up to $600 on a high-efficiency furnace or air conditioner. Under the One Big Beautiful Bill Act (Public Law 119-21, signed in 2025), that credit was terminated for any equipment placed in service after December 31, 2025.

In plain English: a system installed in 2026 or 2027 does not qualify for the federal 25C tax credit. There is no federal HVAC tax credit this year, and no federal December-31 deadline to race. The credit had originally been authorized all the way through 2032, which is why so many homeowners still expect it — but the law pulled that timeline forward to the end of 2025.

If you installed qualifying high-efficiency equipment on or before December 31, 2025, you may still have claimed the credit on your 2025 tax return (the one filed in early 2026). For anything happening in 2027, plan as if the federal credit is off the table — because it is. As always, confirm your own situation with a qualified tax professional; we're HVAC pros, not tax advisors. For the fuller before-and-after picture, see our year-end HVAC rebate and tax checklist for Utah.

What's actually left in 2027: Utah utility rebates

Here's where the real money still is. Utah's two major energy utilities run rebate programs that are completely separate from the federal tax credit — and they kept running when 25C expired. These are the incentives that matter for a Northern Utah HVAC project in 2027.

The first step is knowing which utilities serve your home. Check your bills: Rocky Mountain Power provides your electricity and runs the Wattsmart Homes program, and Enbridge Gas (formerly Dominion Energy Utah) provides your natural gas and runs the ThermWise program. Most Northern Utah homes have both — which means you may be able to pull a rebate from each, depending on the equipment you install.

Rocky Mountain Power Wattsmart (electric)

If a heat pump is on your list, Wattsmart is the biggest single rebate available to Utah homeowners in 2027. The amount scales with the system's efficiency and what it replaces:

A few things to know. The higher tiers require the equipment to meet specific efficiency ratings (the HSPF2 and SEER2 numbers on the spec sheet), and cold-climate units generally have to appear on a qualifying product list. Ductless rebates are tiered: roughly $600 when a mini-split supplements existing gas heat (where most Utah homes land) and up to $1,700 when it replaces electric-resistance heat. Wattsmart revises its measures periodically — it updated its offerings in early 2026 — so treat these as current-but-confirm figures and verify at wattsmarthomes.com before you buy. For the full breakdown, our complete guide to Utah heat pump rebates goes deeper on the tiers and eligibility.

Enbridge Gas ThermWise (natural gas)

Staying with a high-efficiency gas furnace? ThermWise pays a rebate based on the furnace's AFUE rating, plus rebates on smart thermostats, high-efficiency water heaters, and weatherization measures like attic insulation and air sealing:

ThermWise rebates go to existing homes with natural gas heat on a qualifying residential rate, are generally paid for up to two high-efficiency furnaces per dwelling, and the request must be postmarked within six months of installation. Amounts shift over time, so confirm the current offer at thermwise.com or the ThermWise hotline at 1-877-932-0610 before you commit.

Which rebate fits your project?

The rebate you can claim follows the equipment you choose, not the other way around. Here's the quick logic we use when a customer asks what they qualify for:

• Replacing an aging gas furnace with another gas furnace? Aim for a high-efficiency model (95%+ AFUE) and you're in ThermWise territory — up to $350, plus a thermostat rebate. See our furnace installation service.
• Considering a heat pump instead of a furnace-and-AC pair? That's the Wattsmart play — up to $2,000 on a cold-climate system, and the biggest incentive on the board. Modern cold-climate heat pumps work in Utah winters; our guide to heat pumps in Utah winters covers how, and heat pump services is where to start.
• Adding comfort to a room, addition, or a home without ductwork? A ductless mini-split can qualify for a tiered Wattsmart rebate depending on what it replaces.
• Torn between a heat pump and a new AC-plus-furnace setup? Our 10-year cost comparison for Utah homes runs the numbers with the rebates factored in.

Because many Northern Utah homes have both gas and electric service, the strongest projects sometimes stack incentives — for example, a heat pump (Wattsmart) paired with a smart thermostat, or a dual-fuel system that pulls the higher Wattsmart tier while keeping a backup gas furnace. We'll map your specific options when we quote the job.

What about the federal Home Energy Rebates (HEAR & HOMES)?

You may have read about large federal Home Energy Rebates — the HEAR and HOMES programs — that promised thousands of dollars 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 has not been broadly available to Utah homeowners. Its status can change, and we keep an eye on it so we can help eligible customers apply if it opens. For 2027 planning, though, don't build your budget around it — plan around the Wattsmart and ThermWise rebates above, which are real and active today.

How to actually claim a Utah HVAC rebate in 2027

Rebates aren't automatic — you (or your contractor) file for them, and there's a clock. Here's the step-by-step we walk our customers through:

1. Confirm your utilities and the matching program. Rocky Mountain Power → Wattsmart; Enbridge Gas → ThermWise. Check your bills if you're not sure which you have.
2. Choose qualifying equipment. The rebate depends on efficiency ratings (AFUE for furnaces; HSPF2/SEER2 for heat pumps). We'll recommend models that hit the rebate thresholds without overpaying for efficiency you won't use.
3. Get sized and quoted. A right-sized system is the single biggest factor in comfort, efficiency, and equipment life. Request a quote so we can measure the home instead of guessing from square footage.
4. Keep every document. Save the itemized invoice, the equipment model numbers, and any AHRI or manufacturer certification statement — the rebate application asks for all of it.
5. File inside the window. Wattsmart applications run about 90 days from install through the Wattsmart portal; ThermWise requests must be postmarked within six months. We help complete these so nothing lapses.

Rebate amounts change every year — here's how to protect yourself

This is the part worth internalizing: utility rebate amounts and qualifying rules are revised on an annual program cycle. Rocky Mountain Power and Enbridge Gas file updated measures and dollar amounts with the Utah Public Service Commission, and the figures do move. The rebate you see today is not guaranteed to be the same offer, at the same dollar amount, six months from now.

Two practical takeaways. First, verify the current amount before you buy — check wattsmarthomes.com or thermwise.com, or let us pull the live figure for your project. Second, if a rebate meaningfully changes your budget, don't sit on a decision for a borderline system; a furnace or AC that's already failing rarely waits for a convenient moment, and installing on your own schedule beats an emergency swap in January when availability and price work against you. If you're weighing repair versus replace, our guide on the signs your furnace needs replacing before winter is a good gut check.

Know what you're installing before you commit

The rebate is the reward; the right system is the decision. A little reading now saves an expensive mistake later:

• For real 2026–27 price ranges by system type, see our Utah HVAC replacement cost guide.
• Need to spread the cost over monthly payments? Our Utah HVAC financing guide shows how to stack financing with a rebate — and you can apply for financing directly.
• Want the complete rebate deep-dive? Start with our complete Utah heat pump rebate guide.

When you're ready, our team sizes the system correctly, quotes it upfront, and points you to every incentive you qualify for — across our heat pump, furnace installation, and ductless mini-split services, for homeowners across Centerville, Bountiful, Layton, and the rest of Northern Utah.

Claim Every Rebate You Qualify For.

Salmon HVAC has kept Northern Utah comfortable since 1979. Get an honest quote, choose the right system, and we'll handle the rebate paperwork so you don't leave money on the table.

Frequently Asked Questions

Are there HVAC rebates in Utah in 2027?

Yes. While the federal 25C tax credit is gone, Utah's two main utility rebate programs are still active in 2027. Rocky Mountain Power's Wattsmart Homes program pays rebates on qualifying heat pumps (up to around $1,700 for a standard air-source heat pump and up to $2,000 for a cold-climate, dual-fuel, ductless, or ground-source system) plus a smart thermostat add-on. Enbridge Gas (formerly Dominion Energy) ThermWise pays rebates on high-efficiency gas furnaces ($300 to $350 depending on AFUE), smart thermostats, and high-efficiency water heaters. Amounts are revised each program year, so confirm the current figure before you buy.

Is there a federal HVAC tax credit in 2027?

No. The federal 25C Energy Efficient Home Improvement Credit — which used to return up to $2,000 for a heat pump and up to $600 for a high-efficiency furnace or AC — was terminated for any equipment placed in service after December 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21). A system installed in 2026 or 2027 does not qualify for the federal credit. If a salesperson tells you to buy now to claim a federal tax credit in 2027, that information is out of date. Always confirm your own tax situation with a qualified professional.

How much is the Rocky Mountain Power heat pump rebate in 2027?

Through the Wattsmart Homes program, a qualifying standard air-source heat pump earns a rebate of roughly up to $1,700, and a higher-efficiency cold-climate, dual-fuel, ductless, or ground-source heat pump can earn up to $2,000, with a smart thermostat add-on of up to about $100. The exact amount depends on the equipment's efficiency tier (HSPF2/SEER2 ratings) and what it replaces. Rocky Mountain Power updates these measures and amounts periodically, so verify the current rebate at wattsmarthomes.com before purchasing.

Does a gas furnace qualify for a Utah rebate in 2027?

Yes, if it is high-efficiency. Enbridge Gas ThermWise pays about $300 for a gas furnace rated 95 to 97.4% AFUE and about $350 for a furnace rated 97.5% AFUE or higher with an ECM blower motor. The home must have natural gas heat on a qualifying residential rate, and the rebate request must be postmarked within six months of the install date. ThermWise also offers rebates on smart thermostats ($50 to $75) and high-efficiency water heaters. Confirm current amounts at thermwise.com or 1-877-932-0610.

How do I claim a Utah HVAC rebate, and how long do I have?

You file an application after the equipment is installed, with your itemized invoice, the equipment model numbers, and any AHRI or manufacturer certification. For Rocky Mountain Power Wattsmart, applications are typically submitted within about 90 days of installation through the Wattsmart portal. For Enbridge Gas ThermWise, the rebate request must be postmarked within six months of the install date. Because both windows start on your install date, don't wait — Salmon HVAC helps customers complete this paperwork so a rebate doesn't slip through the cracks.