California state incentives for ACs and furnaces

While California does not currently offer a state tax credit, several utility companies offer incentives that can reduce the upfront cost of your HVAC equipment.

Below is a snapshot of various rebate programs throughout the state:

• Sacramento Utility District promotes a Home Performance Program, which includes rebates up to $3,000 for heating and cooling packages.
• Southern California Edison currently offers a $75 rebate on smart thermostats.
• Pacific Gas and Electric provides rebates ranging from $50 to $120 for smart thermostats.
• Burbank Water and Power offers a rebate of up to $1,500 to replace older, inefficient air conditioners.
• Los Angeles Department of Water and Power encourages homeowners to opt for high-efficiency heat pumps and ACs by offering a $100–120 per-ton rebate program.

You can contact your utility provider directly to find out the rebates they offer for new HVAC systems. Additionally, you can search Energy Star’s rebate finder database to find other rebates available in your zip code.