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The federal HVAC tax credit expired. Here's what Sarasota homeowners can still save on a new Lennox system in 2026, from FPL rebates to manufacturer offers.
If you have been holding off on replacing an aging AC system because you heard there was a big tax credit waiting for you, there is something you need to know before you make a decision. The federal tax credit most homeowners are thinking of, the one that covered up to 30 percent of a new HVAC system, is gone for 2026 installations. That does not mean there is nothing left on the table, but it does mean the math looks different than it did even a year ago.
This matters right now because a lot of the guidance still floating around online, and even some contractor quotes, have not caught up to the change. Sarasota and Manatee County homeowners planning a replacement this year deserve an accurate picture of what actually applies, not outdated numbers copied from an old blog post.
This article breaks down exactly what changed at the federal level, what Florida homeowners can still claim through their utility and through manufacturer promotions, and how those pieces actually stack together on AC repair cost versus a full replacement in 2026.
In this article, you will learn about:
Keep reading so you walk into your next HVAC quote knowing exactly what savings are real and which ones are not.
For three years, the federal Energy Efficient Home Improvement Credit, known as Section 25C, gave homeowners a real reason to time their HVAC replacement around tax season. That credit is no longer part of the picture for a system installed in 2026, and the reason matters more than the fact itself.
Congress passed a law called the One Big Beautiful Bill Act in the summer of 2025, and it moved up the expiration date on several energy tax credits, including Section 25C. According to the Internal Revenue Service, the credit officially ended for any equipment placed in service after December 31, 2025.
That last phrase, placed in service, is the part homeowners tend to miss. It does not matter when you signed a contract, put down a deposit, or even paid in full. What matters is when the system was actually installed and running. A system installed in January 2026 does not qualify, even if you ordered it back in November 2025.
Understanding what disappeared helps explain why some homeowners are frustrated by the change. According to ENERGY STAR, the federal government's own energy efficiency program, homeowners could claim up to $3,200 a year covering 30 percent of costs on qualifying upgrades through the end of 2025, split between a $1,200 cap for items like central air conditioners and furnaces and a separate $2,000 cap specifically for heat pumps.
That was real money on a real invoice, which is exactly why the expiration caught so many homeowners off guard. Some of the modern HVAC features that actually lower bills, like variable-speed compressors and smart zoning, were part of what made higher-tier systems worth the extra cost when the credit was still in play. A few things worth understanding about how the credit used to work, now that it no longer applies to new installs:
Plenty of articles, and even some quotes homeowners are receiving right now, still reference the old federal credit as if it applies in 2026. Some of that is simply outdated content that has not been updated since the law changed. Some of it is less innocent, and it plays on the same instinct that makes homeowners want to extend an AC's lifespan rather than face a bigger purchase, even when replacement is the smarter move.
If a contractor's proposal lists a federal tax credit as part of your total savings on a 2026 installation, that is worth a direct question before you sign anything. The safest move is to ask specifically whether the number reflects current law, not last year's rules, and to get the answer in writing on the quote itself rather than taking a verbal assurance. This is one of several questions worth asking any HVAC company before you commit to a contract.
With the federal credit gone, the real savings for most Sarasota homeowners now come from your electric utility rather than the IRS. Gary Air's service area falls within Florida Power & Light territory, and FPL runs its own rebate program independent of anything happening at the federal level.
According to FPL, homeowners can get an instant $200 credit applied directly to their invoice when they replace a full system, both the indoor and outdoor units together, with a unit rated SEER2 15.2 or higher. The rebate is not a rebate you mail in and wait for. It shows up as a line-item credit on the bill from the contractor at the time of installation.
There is a catch worth knowing about before you start collecting quotes. The instant credit only applies when the installation is done by one of FPL's Participating Independent Contractors, referred to as PICs in FPL's own materials. If your contractor is not enrolled in that program, the $200 does not appear, regardless of how efficient the system is.
A few things determine whether a specific job qualifies for the FPL rebate:
Homeowners sometimes ask whether they can save money by replacing just the outdoor condenser and keeping the existing indoor coil, especially if the indoor unit still seems to be working fine. That approach voids the FPL rebate entirely, since the program is built around retiring a full aging system rather than patching part of one.
Mixing a new outdoor unit with an old indoor coil creates a mismatched system that often runs less efficiently than either part was designed for on its own, on top of losing the rebate. If a quote suggests this approach specifically to lower the upfront price, that is worth a second opinion before moving forward.
FPL is not the only utility offering something in this space, though Gary Air's Sarasota and Manatee County customers are typically within FPL territory. Duke Energy Florida, Tampa Electric, JEA, and other Florida utilities each run independent programs with their own dollar amounts and efficiency thresholds, and none of them are coordinated into one statewide rebate.
A few of the utility names homeowners across Florida sometimes ask about, in case a family member elsewhere in the state is comparing notes:
That patchwork approach means a homeowner cannot simply search for a general "Florida HVAC rebate" and get an accurate number. The right move is confirming your specific utility account and checking that provider's current program directly rather than relying on a number that may apply to a different part of the state.
It is also worth asking your installer the right questions before choosing them, since not every contractor is equally upfront about which rebates actually apply to your specific installation.
Beyond what the government or your utility offers, equipment manufacturers run their own seasonal promotions, and these often add up to more meaningful savings than either federal or utility programs did even before the tax credit expired. Gary Air currently has an active Lennox rebate promotion running, and understanding how it actually works helps you evaluate whether the timing makes sense for your situation.
The promotion currently available through Gary Air offers up to $1,800 in Lennox rebates, paired with 0 percent interest financing for 12 months. Manufacturer promotions like this one typically move based on the season and on what Lennox is pushing at the corporate level, which means the specific dollar amount and terms can change without much notice.
That is different from a federal tax credit, which locks in based on the tax year and the rules in place when the system is installed. A manufacturer promotion is tied to a specific window of time, and once that window closes, the offer genuinely disappears rather than carrying forward.
The good part of this arrangement is that manufacturer rebates and utility rebates generally do not compete with each other, since they come from entirely separate organizations with their own budgets and rules. A homeowner installing a qualifying Lennox system through an FPL-approved contractor can typically capture both the manufacturer promotion and the FPL instant credit on the same installation.
Getting both requires the same system to satisfy both programs' requirements at once, though, so the efficiency rating and installation details matter for each program independently. A few things worth confirming before assuming you qualify for everything at once:
The 0 percent interest financing attached to a promotion like this is genuinely useful for homeowners spreading out a large expense, but the fine print on financing offers matters just as much as the rebate amount. Twelve months of 0 percent interest is a real benefit only if the monthly payment actually fits your budget and you are confident about paying it off within that window.
Missing that window on some promotional financing plans can trigger retroactive interest charges back to the original purchase date, which turns what looked like free financing into an expensive mistake. Reading the actual financing agreement, not just the headline terms, protects you from that outcome. If you decide replacement can wait a bit longer, an AC maintenance plan for your current system in the meantime helps you avoid an emergency failure before you are ready to buy.
All of this only matters in the context of an actual decision: is now the right time to replace your system, and if so, what should you realistically expect to spend after every available savings program is applied. The honest answer depends heavily on the condition of your current system and how close it is to the end of its useful life.
If your current AC is already showing signs it needs replacement, waiting on the theory that a bigger federal incentive might return is a real financial risk.
Systems that are already struggling tend to fail at the worst possible time, typically during peak summer demand when repair costs and wait times both climb.
Knowing roughly how long a system should last in this climate helps put your current unit's age into context before deciding. Scheduling an AC tune-up before summer can also buy you time to make that decision without pressure.
Comparing repair costs against replacement is worth doing honestly rather than reflexively repairing an aging unit. If your system has needed repeated repairs already, the accumulated repair spending sometimes exceeds what a portion of a new system would have cost, especially once the current rebate and financing options are factored in.
There is a real point at which a central HVAC replacement genuinely beats another repair, and the current rebate stack can be the factor that tips the decision.
The FPL rebate and a manufacturer promotion both reduce your net cost, but neither one determines the starting price of the system itself. That number depends on the size of your home, the specific Lennox model chosen, ductwork condition, and the complexity of the installation.
A few factors tend to move the base price up or down more than homeowners expect going in:
Installation quality also affects how much value you get out of the equipment itself. A high-efficiency system installed incorrectly, with the wrong refrigerant charge or mismatched ductwork, rarely performs at the SEER2 rating printed on the box, which means you could technically qualify for a rebate while never actually seeing the efficiency gains that rating implies.
Pulling the correct permits also matters here, since permits for AC installation confirm the work meets code, which some utility and manufacturer programs quietly require even when it is not spelled out on the marketing page.
Every homeowner's situation looks different once actual square footage, existing ductwork, and specific equipment choices enter the picture. Planning a full system installation around a realistic budget, rather than around whatever number a promotion advertises, keeps you from being surprised partway through. The only way to know what you would actually pay, and what you would actually save, is getting a real quote that itemizes the base cost, the FPL rebate if your installer is a Participating Independent Contractor, and the current manufacturer promotion separately rather than as one bundled number.
That itemized breakdown is also your best protection against a quote that quietly includes an expired federal credit as part of the advertised savings. Asking for the math to be shown line by line takes a few extra minutes and can save you from a number that looks better on paper than it will on your actual bill. Knowing what to expect from the actual installation process also helps you judge whether a quote's timeline and scope match what a legitimate full-system replacement actually requires.
The federal tax credit that used to make HVAC replacement timing feel urgent is gone for 2026, and no amount of hoping it comes back changes that. What is still real is the FPL instant rebate for qualifying full-system replacements, and manufacturer promotions like the current Lennox offer that can meaningfully lower what you pay out of pocket.
None of these savings programs are complicated once you know they exist and what they actually require. The mistake most homeowners make is either assuming last year's federal credit still applies, or assuming nothing is available anymore because the biggest incentive disappeared. Neither assumption serves you well when you are staring down a system that needs replacing. Keeping an eye on the common warning signs your AC needs replacement helps you time that decision around real system health rather than around a promotion's expiration date alone.
If you are weighing a replacement and want an honest read on what you would actually save with current programs applied to your specific home, Gary Air can walk through the real numbers with you rather than a generic estimate pulled from an outdated article.
Considering a new AC system in Sarasota or Manatee County? Contact Gary Air to see what today's Lennox rebate and FPL credit actually mean for your installation.
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