Across Jacksonville, many contractor quotes still mention “up to $2,000 in federal tax credits” for new heat pumps and ductless mini splits. The problem is, that federal credit no longer applies to systems first installed in 2026, even though a lot of marketing materials haven’t caught up. At the same time, if you installed a qualifying system in 2025, you may still be able to claim a federal credit on the tax return you file in 2026, and you can still use current local incentives like the JEA rebate.
We’ve been helping Northeast Florida homeowners upgrade HVAC systems since 1983, so we’ve watched rebate and tax programs change over the years. In this guide, we’ll walk through what actually happened to the federal heat pump tax credit, what 2025 installations in Jacksonville can still claim, how the JEA rebate works now, and what documentation to keep so you do not leave money on the table.
What Happened to the Federal Heat Pump Tax Credit
The federal heat pump tax credit many people still reference was the Section 25C Energy Efficient Home Improvement Credit. In mid-2025, Public Law 119-21, sometimes called the “One Big Beautiful Bill,” moved the expiration date up to December 31, 2025. That means the credit no longer applies to new heat pump or mini split systems first installed and placed in service in 2026 or later.
When the Inflation Reduction Act first expanded Section 25C, it was scheduled to run through December 31, 2032. A lot of contractor brochures, web pages, and sales presentations were built around that longer timeline. Because the law changed in 2025, many older materials still mention credits through 2032, which is why Jacksonville homeowners are running into conflicting information now.
Under Section 25C as it applied through the end of 2025, qualifying heat pumps and ductless mini splits could earn a nonrefundable tax credit worth 30 percent of the installed cost, capped at $2,000 per tax year. “Nonrefundable” means the credit could lower your federal income tax bill down to zero for that year, but it could not generate a refund by itself or carry any unused amount into future years.
If You Installed in 2025, You Can Still Claim the Credit
The key IRS concept is “placed in service.” For 25C, your heat pump or ductless mini split had to be fully installed, connected, and ready for regular use by December 31, 2025. A signed contract, a deposit, or equipment sitting in the garage did not qualify. If the crew finished the installation and your system was operating by the end of 2025, that date controls, even if you paid the final invoice in early 2026.
If your system met the efficiency requirements and was placed in service in 2025, you will claim the credit on your 2025 federal tax return using IRS Form 5695, Residential Energy Credits. The standard filing deadline for the 2025 return is April 15, 2026, with an extension available to October 15, 2026. Filing later does not change whether the system qualifies, as long as the placed-in-service date was in 2025.
One detail many homeowners miss is the need for the manufacturer’s Qualified Manufacturer Identification Number, or QMID. This four-character alphanumeric code is used on Form 5695 to identify the manufacturer of the qualifying equipment. You will usually find the QMID in the manufacturer’s certification statement, in technical documentation, or on the product listing tied to the Section 25C Energy Efficient Home Improvement Credit. Keeping that documentation with your tax records makes the filing process smoother.
What Documents to Keep for the IRS & Your Rebate Application
Whether you are claiming the federal credit for a 2025 installation, applying for a JEA rebate, or both, the paperwork you save now matters later. The IRS does not ask you to submit every document with your return, but you still need support ready if questions come up, and JEA will require specific attachments when you apply for its rebate.
For your tax records and Form 5695 support:
- Itemized contractor invoice. This should show the model numbers, quantities, and prices of the outdoor unit, indoor unit or air handler, and any associated equipment, with labor broken out separately. You do not submit this with Form 5695, but it supports your calculation of total installed cost.
- AHRI certificate. The Air-Conditioning, Heating, and Refrigeration Institute issues an AHRI certificate for each rated system combination. For both federal credits and JEA rebates, you want the certificate that lists the exact outdoor and indoor components installed, not separate ratings for each component.
- Manufacturer’s certification statement. This document or web page from the manufacturer states that the specific model or combination qualifies for the Section 25C heat pump credit, often tied to ENERGY STAR Most Efficient or similar standards. It commonly includes the QMID as well.
- Proof of payment. Receipts or statements showing when you paid for the system, which helps tie the project to the correct tax year if questions arise.
How rebates affect your credit calculation:
When you calculate the 30 percent credit on Form 5695, you use your net out-of-pocket cost, not the sticker price. That means you subtract:
- Utility rebates, such as the JEA residential rebate program.
- Manufacturer rebates or promotional discounts.
- Any direct incentives applied as a line-item credit on your invoice.
Only after these amounts come off do you multiply by 30 percent, subject to the $2,000 cap for heat pumps. Because the 25C credit is nonrefundable, the resulting amount can reduce your federal income tax for 2025 but cannot exceed your total tax liability or roll forward to future years.
What Jacksonville Homeowners Can Use Now: The JEA Rebate
With the federal heat pump tax credit closed to new 2026 installations, the most important incentive for a new heat pump installation in Jacksonville homeowners can use today is the JEA rebate. JEA currently offers a $200 rebate for qualifying ENERGY STAR certified air-source heat pumps and ductless mini splits serving existing homes.
The current JEA program runs from October 2025 through September 30, 2026. Applications must be submitted within 90 days of purchase, and JEA will not accept any application after October 10, 2026, so it is wise to treat the rebate paperwork as part of the installation process, not something to get to “later.”
To qualify for the $200 rebate, a split-system heat pump must meet specific Tier 1 efficiency thresholds based on the newer testing metrics:
- SEER2 efficiency rating of at least 16 for cooling performance.
- EER2 of at least 11.0 for efficiency at a specific outdoor temperature and load.
- HSPF2 of at least 8.0 for heating efficiency across the season.
JEA also recognizes a Tier 2 threshold at SEER2 of at least 16.9, EER2 of at least 12, and HSPF2 of at least 8.2, but the core requirement is that your system meets or exceeds Tier 1 to qualify for the current rebate amount.
JEA requires that the installed system be listed as a complete combination in the AHRI directory. The AHRI certificate you submit must include all installed components exactly as shown on the invoice. If you mix and match equipment in a way that is not AHRI rated as a system, or if you can only provide individual component ratings, JEA will not approve the rebate.
On top of the heat pump rebate, JEA offers a $50 rebate for an ENERGY STAR certified smart thermostat installed at the same time as the qualifying HVAC system. When you combine the two, you can offset $250 of your project cost through JEA alone, as long as you stay within the program window and file on time.
Homeowners can apply directly through JEA’s website by uploading the required documents, or work with a JEA pre-qualified contractor who can apply the rebate on your behalf and show it as a credit on your invoice.
Why Florida Has No State Heat Pump Rebate Program
Many national articles about heat pump incentives highlight large rebate programs created under the Inflation Reduction Act, including the Home Efficiency Rebates and the Home Electrification & Appliance Rebates, often abbreviated as HEAR or HOMES. Those programs are administered at the state level, which is where Florida’s approach differs from many other states.
In 2024, Governor DeSantis directed Florida agencies to return the federal allocation that would have funded the state’s HEAR program, reportedly about $346 million. The decision was framed as a policy objection to federal conditions attached to the energy programs. As a result, Florida households do not have access to the IRA-funded HEAR rebates of up to $8,000 for heat pumps that some other states are now rolling out.
Because Florida does not levy a state income tax, there is also no state-level energy efficiency tax credit you can stack on top of federal benefits. For homeowners in Jacksonville weighing a heat pump replacement project now, that means local utility rebates, like the JEA offerings, are the primary financial incentives available beyond any standard manufacturer promotions.
Choosing a System That Qualifies for the JEA Rebate
If you are planning a new heat pump installation in Jacksonville today, you cannot create a federal credit where one no longer exists, but you can choose equipment that meets the JEA thresholds and delivers better comfort in our climate. That starts with checking efficiency ratings before you sign a contract.
Match Equipment to JEA’s Tier 1 Thresholds
A system must meet or exceed JEA’s Tier 1 requirements of SEER2 16, EER2 11.0, and HSPF2 8.0 to qualify for the rebate. Because rebates are only available after installation, one way to protect that $200 to $250 opportunity is to select a qualifying model and matched indoor unit up front. Your contractor should be able to provide an AHRI certificate number and a printout showing that your specific combination meets the thresholds.
Take Jacksonville’s Climate Into Account
Our area falls within IECC Climate Zone 2A, which is hot, humid, and cooling-dominant. Variable-speed and inverter-driven heat pumps are built to handle that kind of humidity load efficiently, running at lower speeds for longer periods instead of short bursts at full power. Those operating characteristics help systems achieve higher SEER2 and HSPF2 ratings and can make a noticeable difference in comfort and indoor moisture control.
Make Sure the System Is Sized Correctly
Even the most efficient equipment will not perform as rated if it is the wrong size. A proper Manual J load calculation looks at your home’s square footage, insulation levels, windows, orientation, and air leakage to determine the right capacity. Systems that are oversized tend to short-cycle, which means they run for short periods, shut off, and restart frequently. That pattern wastes energy, leaves humidity high, and may prevent the system from reaching the lab-tested efficiency that JEA’s standards assume.
When we design a new installation, we look at equipment efficiency, climate zone, and load calculations together, then confirm that the final equipment combination appears in the AHRI database so the system is set up to perform well in your home and meet the documentation requirements for incentives.
Bringing It All Together for Jacksonville Homeowners
The federal Section 25C heat pump credit has closed for new 2026 installations, but if your system was placed in service in 2025, you may still be able to claim it on your 2025 tax return with the right documentation. For new projects going in now, the JEA rebate remains a meaningful way to lower upfront cost, provided the system meets JEA’s efficiency thresholds and you file within the 90-day window.
Installation decisions, from the equipment you choose to how we document the job, can determine whether those dollars come back to you. We have been guiding Northeast Florida homeowners through system selection, installation, and incentive paperwork since 1983, and we can help you review qualifying heat pump or ductless mini split options and navigate the JEA rebate process. If you are planning a project or want a second opinion on your options, you can reach us at (904) 605-8190 at David Gray.