In 2026, Nicor Gas offers $150 to $225 rebates on furnaces rated 95% AFUE or higher ($200 to $275 when bundled with a smart thermostat) and $350 on high-efficiency boilers. ComEd offers instant discounts on heat pumps through participating contractors. The federal 25C and 25D tax credits ended for equipment installed after December 31, 2025.
Nicor Gas rebates for 2026
Nicor Gas rebates cover qualifying products installed between January 1 and December 31, 2026. Current residential offers:
| Equipment | Rebate | Key requirement |
|---|---|---|
| Furnace | $150 | 95% AFUE or higher |
| Furnace | $225 | 97% AFUE or higher |
| Furnace + smart thermostat | $200 | 95%+ AFUE, both on the same application |
| Furnace + smart thermostat | $275 | 97%+ AFUE, both on the same application |
| Smart thermostat alone | $25 | ENERGY STAR, Wi-Fi, one per household, gas heat |
| Boiler | $350 | 95%+ AFUE, residential size |
| Combination boiler (heat + hot water) | $500 | 95%+ AFUE, modulating, outdoor reset control |
| Tankless water heater | $150 | ENERGY STAR, UEF 0.95 or higher |
| Storage water heater | $150 | ENERGY STAR, UEF 0.86 or higher, power-vented or condensing |
Nicor also offers rebates for air sealing, insulation, duct sealing and windows through program-approved contractors, and runs separate programs for income-eligible customers. Nicor says rebates can change, so confirm on its rebates page before you buy.
How to claim a Nicor Gas rebate
- You must be an active Nicor Gas residential customer, and the equipment must go in your primary residence (a single-family home or a building with two units or fewer).
- Any professional contractor can do the install. The equipment must be installed and running before you apply.
- Apply online or by mail within 90 days of installation or by January 31, 2027, whichever comes first.
- Your invoice needs the contractor's name and contact info, the install date, the manufacturer and model number, the total cost and proof of payment.
- Processing takes about 6 to 8 weeks. Contractors in Nicor's Contractor Circle network can take the rebate off your bill up front instead.
ComEd heat pump discounts
ComEd's Home Heating and Cooling offering gives instant discounts at the point of sale when you buy a qualifying heat pump from a ComEd heat pump-trained participating contractor. Self-installs don't qualify. Covered equipment includes:
- Air-source and centrally ducted mini-split heat pumps
- Ductless and mixed-use mini-split heat pumps
- Geothermal (ground-source) systems, which need pre-approval and a geothermal-certified ComEd service provider
- Bundles with ENERGY STAR smart thermostats
ComEd's most recent customer guide we could find (September 2025) listed discounts up to $2,000 for air-source and ducted mini-split heat pumps, up to $1,000 for ductless mini-splits, and up to $6,000 per home for geothermal. ComEd says offers are subject to change, and we couldn't confirm 2026 amounts. Check ComEd's heating and cooling discounts page or ask your contractor for the current figure before you sign.
That guide didn't list a discount for standard central air conditioners. If you're replacing an AC, ask whether a heat pump would qualify instead.
Federal tax credits ended for 2026 installs
The 2025 federal law known as the One Big Beautiful Bill Act ended two homeowner credits early:
- 25C, the Energy Efficient Home Improvement Credit, which covered efficient furnaces, central ACs, heat pumps and boilers, isn't allowed for property placed in service after December 31, 2025.
- 25D, the Residential Clean Energy Credit, which covered geothermal heat pumps, isn't allowed for expenditures made after December 31, 2025. The IRS treats the expenditure as made when installation is complete.
For equipment installed in 2026, the utility programs above are the main incentives left. Be cautious of any ad that still promises these federal credits on a new 2026 install.
Tips for getting every dollar
- Get the model number and efficiency rating (AFUE for furnaces and boilers) in writing on your quote, so you can check it against the rebate rules.
- Ask whether the contractor will take the rebate off the invoice or whether you'll file it yourself.
- If you have gas heat and are thinking about a heat pump, ask about a dual-fuel setup that pairs a heat pump with a gas furnace for the coldest days, and how each utility's rules apply.
- If the upfront cost is the hurdle, ask about financing. Nicor Gas also lists energy efficiency loans on its website.
When to call a pro
Yogi Heating & Cooling quotes furnaces, boilers, heat pumps (including cold-climate models) and ductless mini-splits in writing before work starts, with model numbers listed so you can check rebate eligibility. Call (814) 431-1709 or request a quote.
More questions
Does Nicor Gas give a rebate for heat pumps?
Nicor's 2026 residential rebate list doesn't include electric heat pumps. ComEd's heat pump discounts are the main utility offer for those.
Is there a rebate for a new central air conditioner?
ComEd's latest published guide didn't list a discount for standard central ACs. Check ComEd's website for current offers.
Can I still get the federal tax credit for a new furnace?
Not for equipment installed after December 31, 2025. The 25C credit isn't allowed for property placed in service after that date.
How long do I have to apply for a Nicor Gas rebate?
For 2026 installs, within 90 days of installation or by January 31, 2027, whichever comes first.
Related
- Furnace and heating repair
- Financing
- HVAC questions
- Reviews
- AC repair and installation
- Do I need a permit to replace a furnace or AC in the northwest suburbs?
Sources
- Nicor Gas: Residential rebates (2026 program year)
- Nicor Gas: Rebate FAQs
- Nicor Gas: 2026 Energy Efficiency Trade Ally Launch Presentation
- ComEd: Heating and cooling discounts
- ComEd Home Heating and Cooling Offering Overview (customer guide, Sept. 2025)
- IRS: FAQs for modification of sections 25C, 25D and others under the One Big Beautiful Bill Act