Idaho Falls HVAC Rebates in 2026: Idaho Falls Power and Intermountain Gas

Idaho Falls HVAC rebates still pay up to $2,400 from Idaho Falls Power on a heat pump conversion and $275 to $800 from Intermountain Gas on qualifying gas equipment. The federal tax credit is gone, the utility money is not. Before you book a new furnace install, read the order of operations below.

Key Takeaways

• Idaho Falls Power pays $2,400 to convert an electric forced air furnace to a variable speed air source heat pump, and $2,000 for a standard one.
• Intermountain Gas pays $275 on a 95% AFUE gas furnace and $800 on a 95% AFUE boiler.
• Sequence matters more than paperwork. Idaho Falls Power wants the bid submitted before any equipment goes in.
• A zero interest loan up to $10,000 is available instead of the rebate, repaid on your utility bill.
• The federal 25C credit ended 31 December 2025. Utility rebates are now the only meaningful incentive left in Idaho.

Which Utility Pays You?

This is the first question, and getting it wrong wastes weeks.

If your home is heated by natural gas, Intermountain Gas Company runs your rebate. If your home is heated electrically and sits inside the Idaho Falls Power service territory, Idaho Falls Power runs it. If your home is heated by both gas and electric, you are not eligible for Intermountain Gas heating equipment rebates at all. That rule is written into their residential rebate application.

Homes outside the Idaho Falls Power territory fall under a different electric utility, so check your power bill before you assume. The town matters. An HVAC contractor in Rexburg is working under a different electric provider than one inside Idaho Falls city limits.

Every Live Rebate Amount, September 2026

The full electric programme detail sits on the Idaho Falls Power heating and cooling rebates, and the gas amounts are published on the Intermountain Gas rebate page. Both note that offerings can change at any time, so confirm before you commit to equipment.

One detail worth flagging. Intermountain Gas caps the rebate at the price paid for the equipment and installation, so on a very small job the rebate cannot exceed the invoice.

The Zero Interest Loan Most People Miss

Idaho Falls Power offers qualifying customers a zero interest loan of up to $10,000 instead of the rebate. It is repaid in equal monthly instalments added to your utility bill, with terms up to 60 months and a $25 administration charge.

To qualify you need at least twelve months of payment history with City Utilities, no disconnects for nonpayment and no delinquencies. Renters need the building owner’s written permission.

For a homeowner facing a $12,000 heat pump conversion, spreading $10,000 across five years at zero interest is often worth more than a $2,400 cheque. It is worth doing that maths before you choose. If you would rather compare that against conventional terms, our HVAC financing options lays out the alternative.

The Order That Protects Your Rebate

1. Confirm your utility. Check the heating fuel and the power bill, not the assumption.
2. Get the bid submitted first. Idaho Falls Power wants the equipment and installation bid with its Energy Services department before installation. An energy audit may be required before the measure is approved.
3. Wait for the Notice to Proceed. Idaho Falls Power issues this to your contractor. Work started before it is issued is the fastest way to lose the money.
4. Use a contractor who files the forms. The ducted and ductless heat pump applications are submitted by the contractor, not by you. Ask who is doing it before you sign.
5. Pass the post install inspection. An Idaho Falls Power inspector verifies the finished work. The rebate or the loan payment is issued after that.
6. File gas rebates within 90 days. Intermountain Gas requires the application within 90 days of installation, with the final invoice attached. Cheques arrive six to eight weeks after approval.

Call us at (208) 521-2041 before you commit to equipment and we will walk you through which programme fits your home and what has to happen first.

What Happened to the Federal Tax Credit

Section 25C, the Energy Efficient Home Improvement Credit, covered 30% of qualifying HVAC costs up to annual caps. It applied to property placed in service through 31 December 2025 and no further. The IRS energy credit rules state the end date plainly.

Practically, that means two things for Idaho Falls homeowners in 2026. Your real out of pocket cost on a high efficiency system went up even where equipment prices held steady. And any contractor still advertising a federal tax credit on a 2026 install is either mistaken or hoping you will not check.

Idaho’s own residential alternative energy tax deduction still exists for solar, wind, geothermal and certain biomass systems, which is why the ground source heat pump route is worth a second look for some homes. That is a question for your tax preparer, not your HVAC contractor.

Idaho Falls HVAC Rebates FAQs

Are there any rebates for installing a new furnace in Idaho Falls?

Yes. Intermountain Gas pays $275 on a gas furnace rated 95% AFUE or better, provided the home is heated solely by natural gas. Apply within 90 days of installation with the final invoice attached. There is no federal furnace tax credit for equipment installed in 2026.

What efficiency does my furnace need to qualify?

95% AFUE is the minimum for the Intermountain Gas furnace rebate. Boilers and combination boilers also need 95% AFUE. Tankless water heaters need 0.91 UEF. Confirm the model meets the spec before installation, because there is no way to fix it afterwards.

Can I get the Idaho Falls Power rebate if I already have a heat pump?

There is a separate $540 incentive for upgrading to a variable speed air source heat pump. The larger $2,000 and $2,400 amounts are specifically for converting away from an electric forced air furnace, so an existing heat pump does not qualify for those.

How long does the rebate take to arrive?

Intermountain Gas cheques take six to eight weeks after the application is approved. Idaho Falls Power issues the rebate after the post install inspection is completed, so the timeline depends on inspection scheduling.

Do I have to use a specific brand?

Intermountain Gas states it does not recommend specific equipment, only that the unit meets the minimum efficiency. Idaho Falls Power sets measure and installation requirements per programme, so confirm the exact model with them before ordering.

Find Out Which Rebate Fits Your Home

Call Ridgeline Heating and Cooling at (208) 521-2041 and tell us how your home is heated. We will tell you which programme applies, what the paperwork sequence is, and what the system costs after the rebate is taken off. You speak to Nicholas, the owner. Quotes are free. Monday to Friday, 6am to 5pm, across Idaho Falls and Southeast Idaho. If you are weighing up going electric, start with our ductless heating systems.

Ridgeline Heating and Cooling

370 College St Idaho Falls, ID 83401 Phone: (208) 521-2041 Email: nick@ridgelinecsllc.com Hours: Monday to Friday, 6:00am to 5:00pm Idaho HVAC license 050089 Serving Idaho Falls, Ammon, Rigby, Shelley, Blackfoot, Rexburg and Southeast Idaho since 2021.

About the author: Nicholas Mcaintier is the owner of Ridgeline Heating and Cooling, a family run residential HVAC company he founded in Idaho Falls in March 2021. He works under Idaho HVAC license 050089 and handles rebate paperwork for customers across Southeast Idaho. more about our team.