Florida AC Rebates and Tax Credits: FPL Programs and the IRS 25C Guide

TL;DR: A new or upgraded AC in South Florida can still come with real money back, but the picture changed in 2026. Florida Power and Light gives an instant $200 rebate on a qualifying high-efficiency AC, and its On Call program pays up to $91.75 a year for letting FPL briefly cycle your equipment at peak demand (FPL). Duke Energy Florida customers have a separate rebate path. Income-eligible homeowners may qualify for a federal heat pump rebate of up to $8,000. The headline federal tax credit, IRS Section 25C, is the part that changed. It covered qualifying installs placed in service through December 31, 2025, and is not available for installations in 2026 and later. This guide walks each program so you know what is live, what is historical, and how to pursue the ones that still pay. Air Nifty Air Conditioning is a family-operated South Florida HVAC contractor in business since 1997 with offices in Margate and Palmetto Bay, serving Miami-Dade, Broward, and Palm Beach counties under Florida HVAC license CAC1824313.

Key facts on Florida AC rebates and tax credits

The figures below are the official program amounts, pulled straight from the utilities and the IRS, not from any contractor estimate. They are the whole reason this guide exists, so we lead with them. Read the status on each one carefully, because the biggest change for 2026 is that the federal tax credit most homeowners ask about first is no longer the lever it was.

• FPL instant $200 AC rebate (active). FPL customers can receive an instant $200 rebate when they install a qualifying SEER2 15.2 or higher residential central AC system through a Participating Independent Contractor (FPL). The amount and the minimum efficiency threshold can change with state regulatory approvals, so confirm both on FPL’s AC rebate program page before you count on them.
• FPL On Call bill credit, up to $91.75 a year (active). FPL’s On Call program pays a residential customer up to $91.75 a year in bill credits for allowing FPL to briefly cycle enrolled cooling equipment during peak demand (FPL). Enrollment is free, and it stacks on top of the equipment rebate above.
• Duke Energy Florida HVAC rebate, up to $1,000 single-family or $600 multifamily (active, verify-current). For homes served by Duke Energy Florida rather than FPL, the utility offers up to $1,000 for a qualifying single-family central AC replacement and up to $600 for a multifamily unit, after the customer completes a free Home Energy Check within the prior 24 months (Duke Energy Florida, May 2025). These figures replaced earlier $300 / $1,700 amounts seen in 2024 materials, and Duke Energy Florida has changed amounts over time, so verify the current figure on Duke Energy Florida’s program page before relying on it.
• Federal HEAR heat pump rebate (not yet launched in Florida). The federal Home Electrification and Appliance Rebates program offers up to $14,000 per income-eligible household at or below 150 percent of area median income, with a heat pump sub-cap of up to $8,000 inside that household total, administered in Florida through the FDACS Office of Energy (FDACS). As of 2026, HEAR has not launched in Florida and FDACS has not announced a firm rollout date, so no Florida homeowner can apply for the rebate today. Confirm program status directly with FDACS before counting on it.
• IRS Section 25C tax credit (historical, not available for 2026 and later installs). For a qualifying system placed in service through December 31, 2025, the IRS Section 25C Energy Efficient Home Improvement Credit covered 30 percent of cost, with a $600 cap for central AC inside a $1,200 annual envelope cap and a separate $2,000 cap for a qualifying heat pump, for a combined maximum of $3,200 a year (IRS, Section 25C). Under the One Big Beautiful Bill that credit is not available for installations in 2026 and later, so it matters now only to a homeowner filing for a 2025-or-earlier qualifying install.

One piece of Florida context frames why the electrification programs reach so many homes here. About 77 percent of Florida homes are all-electric, the highest share in the country (EIA, 2020 RECS), so a heat pump rebate is relevant to a very large share of households. The rest of this guide takes each active program in turn, then explains exactly where the expired federal credit still fits.

The FPL instant $200 AC rebate

For most South Florida homeowners on FPL, this is the simplest money back on a new system. FPL gives an instant $200 rebate when you install a qualifying SEER2 15.2 or higher residential central AC through a Participating Independent Contractor (FPL). It is instant because it comes off at the time of installation rather than as a check or a bill credit you wait for later.

Two details decide whether you get it. The first is equipment efficiency. The unit has to meet or beat FPL’s minimum SEER2 rating, where SEER2 is the federal score for how efficiently an AC cools over a season, and a higher number means lower running cost. The second is who installs it, because the rebate flows through a contractor enrolled in FPL’s program. Air Nifty installs qualifying high-efficiency systems and can tell you at the quote stage whether a given unit clears the current FPL threshold. We do not administer or guarantee the FPL program, and the rebate amount and the SEER2 cutoff can both move with state regulatory approvals, so confirm the current numbers on FPL’s AC rebate program page before you decide. Our guide to SEER2 ratings in Florida explains how the efficiency tiers work so the rebate threshold makes sense.

FPL On Call: a bill credit you can stack

The On Call program is the rebate most homeowners have never heard of, and it costs nothing to join. FPL pays a residential customer up to $91.75 a year in bill credits in exchange for permission to briefly cycle enrolled cooling equipment during the short windows when statewide demand peaks (FPL). The exact maximum is $91.75, and it arrives as a credit on the monthly bill rather than as an upfront discount.

FPL installs a small switch on or near the enrolled equipment and cycles it for short intervals on a handful of high-demand afternoons. Most homes barely notice because of the thermal lag in a well-insulated house, and the credit posts every year you stay enrolled. The reason it belongs in a rebate guide is that On Call layers on top of the equipment rebate. A homeowner who installs a qualifying system can take the instant $200 and then enroll the same equipment in On Call for the recurring annual credit. The two are separate programs with separate sign-ups, and neither one is a purchase. Our guide to a high summer electric bill in Florida covers where On Call fits among the other ways to bring a Florida cooling bill down.

Duke Energy Florida: a different path for a different territory

If your power comes from Duke Energy Florida rather than FPL, the rebate path starts with an audit. Duke Energy Florida offers up to $1,000 for a single-family central AC replacement and up to $600 for a multifamily unit, after the customer completes a free Home Energy Check within the prior 24 months (Duke Energy Florida, May 2025 press release). The Home Energy Check is the gate, so the rebate does not apply until the utility has assessed the home and confirmed the timing requirement.

The sequence is straightforward. A homeowner schedules the free Home Energy Check, the utility identifies which improvements qualify, and approved upgrades then earn rebates up to the program caps. AC replacement is one eligible measure within Duke Energy Florida’s HVAC rebate program, and the figures above reflect the May 2025 program update that replaced earlier $300 and $1,700 amounts seen in 2024 materials. The important caveat is that Duke Energy Florida has changed these amounts over time, so verify the current rebate on Duke Energy Florida’s program page before you let it factor into a decision. Air Nifty serves the FPL-territory counties of Miami-Dade, Broward, and Palm Beach, so a Duke Energy Florida customer should treat this section as background on how that utility structures its program.

The federal HEAR heat pump rebate

For income-eligible households, the largest single number in this guide is a federal heat pump rebate that has not yet launched in Florida. The federal Home Electrification and Appliance Rebates program offers up to $14,000 per household at or below 150 percent of area median income, with a heat pump sub-cap of up to $8,000 inside that household total, with the Florida rollout administered through the FDACS Office of Energy (FDACS). As of 2026, FDACS has not launched HEAR in Florida and has not announced a firm rollout date, so no Florida homeowner can apply for the rebate today.

A heat pump matters in Florida because most homes here are all-electric and a heat pump both cools and heats with one system, which makes it the equipment type these federal electrification dollars target. Two things will decide whether the rebate is reachable when it eventually launches. The first is income relative to the local area median, which will set eligibility and the rebate tier. The second is program timing, since state-administered rollouts open, pause, and update their rules on their own schedules. The honest guidance is to confirm current program status and your own eligibility through the FDACS Office of Energy and the official energy.gov home energy rebates information before you build a decision around this money. Air Nifty installs qualifying heat pumps and can speak to the equipment side, but we are a contractor, not the program administrator, and we do not determine eligibility. Our comparison of a heat pump versus a straight-cool AC explains why the heat pump is the common all-year choice in an all-electric state.

Where the IRS Section 25C tax credit fits now

This is the credit most people ask about first, and it is the one that changed. For a qualifying system placed in service through December 31, 2025, the IRS Section 25C Energy Efficient Home Improvement Credit covered 30 percent of cost, with a $600 cap for central AC inside a $1,200 annual envelope cap, plus a separate $2,000 cap for a qualifying heat pump, for a combined maximum of $3,200 in a tax year (IRS, Section 25C). Under the One Big Beautiful Bill, that credit is not available for installations in 2026 and later.

So the practical reading depends on when the equipment was installed. If a qualifying system was placed in service in 2025 or earlier, the credit still matters because the homeowner may claim it on the relevant tax return, and the figures above describe what it covered. If the installation is happening in 2026 or later, Section 25C is history rather than money you can plan around, and the live value in this guide rests entirely on the utility and federal programs above. We flag this directly because a lot of older reading material still presents 25C as a current credit, and acting on that today would be a mistake. Air Nifty does not provide tax advice, and whether anyone can claim a credit for a past install depends on that person’s individual tax situation, so a homeowner with a 2025-or-earlier qualifying install should confirm the details with a tax professional and current IRS guidance. For homeowners deciding whether a new system is worth it on its own merits, our repair-or-replace decision guide walks the math without leaning on the expired credit.

How to actually pursue these programs

Pursuing the live programs is mostly about sequence, and the order matters more than people expect. Confirm your utility first, because FPL customers and Duke Energy Florida customers follow different paths. Then match the equipment to the program before anything is installed, since most of these rebates depend on the system meeting an efficiency threshold or an eligibility rule that has to be true at install time.

If your home is served by FPL, plan the equipment around the SEER2 threshold that unlocks the instant $200 rebate, and plan to enroll in On Call separately for the recurring annual credit. If Duke Energy Florida, book the free Home Energy Check first, because the rebate does not apply until that assessment is done. If household income is at or below the local area median, look into the federal HEAR heat pump rebate through the official Florida program before assuming it does or does not apply. Keep every document, because rebate and credit claims all run on proof of the equipment, its efficiency rating, and the install date. The single most useful step is a written estimate that names the specific equipment and its efficiency rating, so you can check it against each program’s current rules before you commit. Our AC installation guide covers how a qualifying system gets installed to Florida code, and annual HVAC maintenance keeps that efficiency where it needs to be to stay rebate-qualified.

Frequently asked questions about Florida AC rebates and tax credits

The questions below cover what we hear most often from homeowners across Miami-Dade, Broward, and Palm Beach who want to know what is actually available for a new or upgraded AC. Each answer states the program status clearly so you do not act on a credit that no longer applies.

Wondering which program fits your situation?

Can I still claim the IRS Section 25C tax credit for a new AC?

Not for a new installation in 2026 or later. For a qualifying system placed in service through December 31, 2025, the credit covered 30 percent of cost, with a $600 cap for central AC inside a $1,200 envelope cap and a separate $2,000 cap for a qualifying heat pump, up to a combined $3,200 a year. Under the One Big Beautiful Bill it is not available for installations in 2026 and later. It still matters to a homeowner filing for a 2025-or-earlier qualifying install, who should confirm the details with a tax professional. Air Nifty does not provide tax advice.

What rebates can I actually get on a new AC in Florida right now?

The active levers are utility and federal programs. FPL customers can receive an instant $200 rebate on a qualifying SEER2 15.2 or higher AC and up to $91.75 a year through On Call. Duke Energy Florida customers can earn up to $1,000 for a single-family central AC replacement or up to $600 for a multifamily unit after a free Home Energy Check. The federal HEAR program offers up to $14,000 per income-eligible household at or below 150 percent of area median income for those who qualify in a state where it has launched, but as of 2026 HEAR has not yet launched in Florida and FDACS has not announced a firm rollout date. Amounts and rules change, so confirm each one on the program’s official page.

How does the FPL instant $200 AC rebate work?

It comes off at the time of installation rather than as a check later. To qualify, the new central AC has to meet FPL’s minimum SEER2 efficiency rating and be installed through a contractor enrolled in FPL’s program. The amount and the minimum SEER2 threshold can change with state regulatory approvals, so the current numbers should be confirmed on FPL’s AC rebate program page. Air Nifty installs qualifying systems but does not administer the FPL program.

What is the FPL On Call program and is it worth it?

On Call pays a residential customer up to $91.75 a year in bill credits for letting FPL briefly cycle enrolled cooling equipment during peak demand. Enrollment is free, the cycling happens on a small number of high-demand afternoons, and most homes barely notice it. It stacks on top of the instant equipment rebate, so a homeowner can take the $200 and also enroll the same system in On Call. For a no-cost program with a recurring annual credit, it is usually worth a look for an FPL customer.

Is there a federal rebate for a heat pump in Florida?

Eventually. The federal Home Electrification and Appliance Rebates program offers up to $14,000 per income-eligible household at or below 150 percent of area median income, with a heat pump sub-cap of up to $8,000 inside that household total, administered in Florida through the FDACS Office of Energy. As of 2026 the program has not yet launched in Florida and FDACS has not announced a firm rollout date, so no Florida homeowner can apply for the rebate today. Confirm current program status with FDACS before relying on it. Air Nifty installs qualifying heat pumps but does not determine eligibility.

Does Air Nifty handle the rebate paperwork for me?

We help where a contractor can. Air Nifty installs qualifying high-efficiency equipment and provides a written estimate that names the specific system and its efficiency rating, which is what every rebate and credit claim is checked against, and we can tell you whether a given unit meets a program threshold. We are a licensed contractor, not the program administrator, so we point homeowners to the official FPL, Duke Energy Florida, and federal program pages for enrollment, eligibility, and the current amounts rather than guaranteeing any rebate.

Plan a qualifying installation with a free in-home estimate

Air Nifty serves Miami-Dade, Broward, and Palm Beach counties from offices in Margate and Palmetto Bay. Our technicians plan rebate-qualifying installations across the full service area including Margate, Coral Springs, Fort Lauderdale, Tamarac, and Pompano Beach on our regular routes. We provide a written estimate that names the equipment and its efficiency rating so you can check it against each program’s current rules, we explain which active programs a given system can qualify for in plain terms, and we point you to the official utility and federal program pages for enrollment and eligibility. We never quote a system by phone, and every estimate is written. Annual HVAC maintenance keeps that qualifying efficiency where it needs to be year over year. Air Nifty is a family-operated South Florida HVAC contractor in business since 1997, working under Florida HVAC license CAC1824313 and AmTrust liability insurance at $1,000,000 or more in coverage. Our installation team is a Lennox Authorized Dealer, a Rheem Preferred Dealer, and a Daikin Comfort Pro.