If you’re planning a furnace, heat pump, or AC replacement in Delaware County and searching for 2026 rebates, here’s the short version: the federal tax credit you may have read about is gone. What’s still on the table is a real, local rebate from PECO, and it’s worth doing this right. Below is exactly what changed, what’s still live, and how to actually collect the money.
The federal 25C tax credit expired December 31, 2025
For the last few years, homeowners installing a qualifying heat pump, furnace, or central AC could claim the Energy Efficient Home Improvement Credit, also known as Section 25C, worth up to $2,000 for a heat pump. Under the One Big Beautiful Bill Act, that credit ended on December 31, 2025. If your equipment goes in during 2026, it does not qualify. Period.
A lot of contractor blogs and statewide rebate roundups still ranking in search results haven’t caught up to this. They talk about the 25C credit like it’s still active, because it was, right up until the end of last year. If a page you’re reading tells you to “claim your 30% federal credit” for a 2026 installation, that page is out of date. We’re telling you plainly: for anything installed in 2026, that federal credit is not available.
What’s still live for Delaware County homeowners: PECO Home Rebates
The good news is that the federal credit expiring doesn’t mean the money dried up. If you’re a PECO customer in Delaware County, the PECO Home Rebates Program is still running, and it’s been extended through 2031. That means this isn’t a one-year window you need to rush into before some deadline wipes it out. It’s a standing program you can plan around for your heating or cooling replacement whenever you’re ready to move forward.
PECO’s rebates apply to qualifying high-efficiency equipment installed as a replacement in an existing home. This is the piece most statewide guides skip: they’ll mention “utility rebates may be available” without ever telling you the actual dollar amounts. Here’s what PECO is currently paying out.
Exact PECO rebate amounts by equipment type
PECO’s rebate tiers are based on the efficiency rating of the equipment you install, measured in SEER2. The higher the efficiency, the bigger the rebate.
- Ducted air-source heat pump, 15.2 to 17.0 SEER2: $200 rebate
- Ducted air-source heat pump, 17.1 SEER2 or higher: $300 rebate
- Ductless mini-split heat pump, lower efficiency tier: $150 rebate
- Ductless mini-split heat pump, higher efficiency tier: $300 rebate
- Natural gas furnace: rebate available for qualifying high-efficiency models under the same PECO Home Rebates Program
These amounts are specific to PECO’s territory, which covers Delaware County. If you’re comparing quotes or reading a “Pennsylvania HVAC rebate” article that isn’t naming these tiers, it’s probably written for a different utility footprint or isn’t current. Knowing your exact tier matters, because the difference between a 15.2 SEER2 heat pump and a 17.1 SEER2 unit isn’t just $100 in rebate money, it’s also lower operating costs for as long as you own the system.
The 90-day filing deadline and what paperwork you need
PECO rebates aren’t automatic. You have to file for them, and there’s a hard deadline: applications must be submitted within 90 days of your purchase or installation date. Miss that window and the rebate is gone, no exceptions.
To file, you’ll need:
- A paid receipt or invoice showing the purchase and installation date
- The equipment’s model number
- AHRI certification documentation confirming the unit’s efficiency rating
This is exactly the kind of paperwork that gets lost in a busy household after a big install. We handle it for our customers. When Frontline installs your new system, we pull the AHRI certificate, document the model number, and submit your PECO rebate application within the 90-day window so it doesn’t fall through the cracks. You don’t have to track deadlines or figure out utility paperwork on top of everything else that comes with a new furnace or heat pump.
Stacking your rebate with financing
A PECO rebate isn’t a discount at the time of sale, it’s a check that comes after installation once your application is processed. That means your upfront cost on install day is the full project price, with the rebate arriving separately afterward. If you’re financing your new system, that timing matters.
We structure financing plans so the PECO rebate works alongside your payment schedule rather than against it. You can look at our financing options to see what fits your budget, and factor the eventual rebate check in as extra room once it arrives. Combining a financed installation with a filed PECO rebate is the most common way Delaware County homeowners are handling a heat pump or furnace swap in 2026 now that the federal credit is off the table.
Quick eligibility checklist
Before you assume you qualify, run through this list:
- You have PECO electric or gas service at the property
- You’re installing new qualifying equipment, not used or refurbished units
- The installation is a replacement in an existing home, not new construction
- You can provide a paid receipt, model number, and AHRI certification
- You (or your contractor) submit the rebate application within 90 days of install
If you check every box, there’s no reason to leave that rebate money unclaimed.
FAQ
Is the federal tax credit really gone?
Yes. The Section 25C Energy Efficient Home Improvement Credit, which offered up to $2,000 for a qualifying heat pump, expired December 31, 2025 under the One Big Beautiful Bill Act. If your equipment is purchased and installed in 2026, it is not eligible for that credit. Any page telling you otherwise for a 2026 installation is out of date.
Can I still combine PECO’s rebate with anything else in 2026?
The PECO Home Rebates Program is the main incentive confirmed available to Delaware County homeowners right now, and it’s extended through 2031, so it’s not going anywhere soon. Pair it with a Frontline financing plan to manage the upfront cost while your rebate application processes.
Does the PECO rebate apply to gas furnaces or only heat pumps?
Both. PECO offers rebates for qualifying high-efficiency natural gas furnaces in addition to the ducted and ductless heat pump tiers listed above. The exact amount depends on the equipment’s efficiency rating.
What happens if I miss the 90-day deadline?
The rebate is forfeited. There’s no grace period, which is why having your contractor handle the paperwork and submission at the time of install matters.
Schedule your Delaware County replacement now
The federal credit is gone, but the PECO rebate isn’t, and it’s not going anywhere until at least 2031. If you’re in Delaware County and ready to replace a furnace, heat pump, or AC, contact us to schedule your install. We’ll help you pick the right efficiency tier for your rebate, walk you through financing if you need it, and file your PECO paperwork within the 90-day window so you actually collect the money instead of losing it to a missed deadline. For more on keeping your system running efficiently once it’s in, check our blog for maintenance and troubleshooting guides.