Chicago HVAC Rebates & Federal Tax Credits (2025 Guide for Homeowners)
If you’ve been thinking about energy efficient home improvements for your Chicago home, 2025 is the most important tax year to act. The clock is ticking on major federal tax credits, local HVAC rebates, and instant discounts from utility companies.
Unless Congress extends the programs, many incentives created under the Inflation Reduction Act end December 31, 2025. When you combine those federal credits with Chicago HVAC rebates from ComEd, Peoples Gas, North Shore Gas, and Nicor, you can significantly lower upfront energy costs for HVAC equipment, heat pumps, hot water boilers, water heaters, insulation, and other eligible improvements.
At Windy City HVAC Repair, we help Chicago homeowners, landlords, and other property owners understand the programs, qualify for rebates, and claim every incentive available. We verify eligibility, handle rebate paperwork, and make the process simple from start to finish.
Quick Snapshot: How Much Can Chicago Homeowners Save?
Below is a simplified overview of today’s most valuable appliance rebates and federal tax credits for HVAC systems and home energy improvements.
| Upgrade | Potential Local Utility Rebate | Federal Tax Credit (25C) | Good to Know |
| Cold-Climate Heat Pump | Instant discounts through ComEd HVAC rebates | Up to $2,000 | Highest total savings opportunity in 2025; reduces energy waste and improves comfort |
| Heat Pump Water Heater | ComEd incentives vary by model | Up to $2,000 | Strong year-round energy efficiency upgrade |
| High-Efficiency Gas Furnace | Peoples Gas, North Shore Gas, Nicor rebates | Up to ~$600 | Great option for natural gas homes and existing home heating systems |
| Smart Thermostats / Programmable Thermostats | $75 ComEd rebate | — | Quick, low-cost upgrade; improves HVAC performance |
Key takeaway: Energy efficient home improvements — especially a cold-climate heat pump or heat pump water heater — offer the biggest advantage before rebates and federal credits expire.
ComEd HVAC Rebates: What Chicago Homeowners Should Know
If your home is within ComEd electric territory, you can access one of the strongest energy efficiency program offerings in Illinois.
Who Qualifies?
- Single-family homes, condos, and small multifamily buildings
- Residential customers served by ComEd
- Income eligible customers may qualify for additional incentives
What’s Eligible?
- Heat pumps
- Heat pump water heaters
- Smart thermostats
- Electric HVAC equipment designed to improve home energy efficiency
ComEd uses a midstream rebate model. This means:
- You get instant discounts at installation
- Homeowners rarely deal with long forms
- Rebates apply automatically when using qualified installers
We confirm your address, verify eligibility, and apply the rebate instantly during your estimate.
Peoples Gas & North Shore Gas Rebates (Chicago + North Suburbs)
If your home uses natural gas through Peoples Gas or North Shore Gas, you may qualify for additional home energy rebates.
Eligible Upgrades
- High-efficiency furnaces
- Boilers (including hot water boilers)
- Water heaters
- Smart thermostats
Important Requirements
- Equipment must meet efficiency guidelines
- Rebate paperwork must be submitted within 30 days
- Keep invoices and model numbers for possible tax filing
We supply your AHRI certificate, complete the paperwork, and track your rebate so you never miss a deadline.
Nicor Gas Rebates (West & Southwest Suburbs)
Homes in Naperville, Downers Grove, Schaumburg, Bolingbrook, and nearby suburbs may qualify for Nicor Gas rebates for eligible HVAC equipment.
Available Rebates
- High-efficiency furnaces
- Smart or programmable thermostats
Program Note
Nicor’s air sealing and insulation rebates are currently paused, so HVAC equipment is the primary focus.
If you’re unsure whether your home is in Nicor territory, Windy City HVAC Repair can look it up instantly.
Federal HVAC Tax Credits Ending December 31, 2025
The federal Energy Efficient Home Improvement Credit (25C) provides a maximum annual credit of up to $3,200, including:
- Up to $2,000 for a heat pump
- Credits for insulation, air sealing materials, exterior doors, and other home improvements
These credits apply to:
- Cold-climate heat pumps
- High-efficiency water heaters
- Biomass boilers and biomass stoves
- Certain oil furnaces and heating systems with qualifying efficiency
Important Guidelines
- Equipment must be installed and placed in service by Dec 31, 2025
- Must apply to your existing home (primary residence)
- You must owe taxes (credit is non-refundable)
- Keep all documentation for your tax preparer
There is no excess credit carried into future tax years, so the incentive is “use it or lose it.”
How Windy City HVAC Repair Helps You Claim Rebates & Credits
We simplify the entire rebate and tax credit process so you get maximum savings without confusion.
1. Confirm Your Utility Service
We check whether your home uses:
- ComEd
- Peoples Gas
- North Shore Gas
- Nicor Gas
This determines which programs you qualify for.
2. Recommend Eligible Improvements
Based on your goals and energy costs, we recommend:
- Cold-climate heat pumps
- Gas furnaces and boilers
- Smart thermostats
- Water heater upgrades
We verify AHRI numbers so your equipment qualifies.
3. Apply ComEd Instant Discounts
For electric equipment, rebates are applied immediately — no waiting.
4. Complete Gas Utility Rebate Packets
We fill out:
- Rebate forms
- AHRI documentation
- Installation details
- Submission tracking
5. Provide Tax Filing Documentation
We supply everything your preparer needs to claim your credit:
- Model numbers
- Manufacturer certification
- Installation date
- Cost breakdown (rebates + net cost)
6. Track All Deadlines
We make sure no paperwork is late so you don’t lose rebate eligibility.
Frequently Asked Questions
Do I still get federal tax credits in 2026?
Current law says no. Credits end after the 2025 tax year unless extended.
Do rebates affect my federal credit?
Yes. Credits apply to the net purchase cost after rebates.
Do heat pumps work in Chicago winters?
Absolutely. Modern cold-climate systems are built for sub-zero temperatures and can improve comfort while reducing energy waste. That said, you will likely want to go with a Cold Climate Heat Pump.
How long do rebate decisions take?
- ComEd: Often instant
- Gas utilities: Typically 4–10 weeks
Windy City HVAC Repair tracks every submission for you.
Beat the December 31, 2025 Deadline
With rising energy costs and valuable tax credits expiring soon, this is the best time to invest in your home’s energy efficiency.
Windy City HVAC Repair will verify your rebates, recommend the right equipment, and manage the process from start to finish.
Schedule Your Chicago HVAC Rebate Consultation:
https://hvacchicago.com/contact/
We help homeowners and landlords maximize rebates, reduce energy waste, and improve year-round comfort. Let us answer your questions about HVAC Repair in Chicago today!
