The federal credit is closed for 2026. Ask your utility what it still pays.

A rebate, an instant discount, and a tax credit are three different payments. Who you buy gas or power from decides which of the first two you can ask about. The federal credit is the one that changed for everyone.

The federal 25C credit

The IRS energy efficient home improvement credit is section 25C. The credit page, reviewed April 28, 2026, describes a credit for qualifying property placed in service on or after January 1, 2023, and before December 31, 2025. Natural gas, propane, or oil furnaces and hot water boilers are on the list of residential energy property, up to $600 per item if they meet the efficiency tier the page names. Heat pumps are a separate line, up to $2,000 a year.

An IRS FAQ on the July 4, 2025 law says the 25C credit will not be allowed for any property placed in service after December 31, 2025. A furnace installed in 2026 falls under that sentence. The dated post quotes both pages.

Duluth: a rebate after the furnace is in

ComfortSystems lists $200 for a high-efficiency furnace rated 90% AFUE or better. AFUE means annual fuel utilization efficiency, which ComfortSystems describes as a standard measurement of how efficiently a furnace converts energy from the fuel it uses into warm air for your home. The page says ComfortSystems does not install furnaces. It inspects, and it can credit the rebate to the utility account that ends in -S. ComfortSystems customers in Duluth can ask about that rebate.

Rochester: Minnesota Energy Resources rebates by AFUE

For Minnesota Energy Resources residential customers, the heating rebate table shows $200 at 92% AFUE, $350 at 94% AFUE, and $500 at 97% AFUE. The offer is for existing homes, not new construction, and the rebate cannot be more than the amount paid. The city of Rochester says Minnesota Energy Resources and Rochester Public Utilities run several home energy programs together.

Iowa: an instant discount, not a flat check

MidAmerican Energy lists natural gas furnaces at $2.40 per MBtuh for its Iowa and Illinois customers. Instant discounts are only available through a participating provider, and the discount is deducted from the purchase price. Equipment must be purchased, installed, and operating between January 1, 2026, and December 31, 2026. MidAmerican must provide the primary electricity or natural gas to the equipment the incentive covers. The January 2026 sheet limits that furnace row to gas only, 225,000 Btuh or less, and AFUE of 95% or better, at $2.40 per 1,000 Btuh of input. A dollar total needs the furnace's input rating, which is printed on the unit.

MidAmerican's territory list pairs Cedar Rapids and Sioux Falls with gas. Its discounts page names only Iowa and Illinois customers. The city of Cedar Rapids' utility contact list labels Alliant as electricity. Cedar Rapids has the local page.

Sioux Falls: heat pump rebates, not a gas furnace rebate

Heartland Energy lists $1,000 for a ducted air-source heat pump of 2 tons or more, $2,000 if that heat pump has an electric backup furnace or boiler, $2,000 for geothermal, and $500 for a non-ducted mini-split of 1 ton or more. The Sioux Falls rebate page says only Sioux Falls Light and Power customers qualify, and that original receipts and proof of proper disposal are required. Those are electric heat pump rebates. MidAmerican lists Sioux Falls for gas, and its furnace instant discount page names only Iowa and Illinois customers.