As of August 2026, there's no broad rebate specifically for installing a high-efficiency furnace in Illinois. The federal tax credit for qualifying furnaces stopped applying to equipment placed in service after December 31, 2025, according to the IRS, and the state's LIHEAP Furnace Assistance program only covers homeowners already receiving LIHEAP or PIPP benefits who have no working furnace. Fire 'n' Ice still helps Downers Grove homeowners save, just through different means.
Key Takeaways
- The federal 25C tax credit doesn't apply to furnaces placed in service after December 31, 2025, according to the IRS.
- Illinois's FY2026 LIHEAP Furnace Assistance ran October 1, 2025 through May 29, 2026, and required existing LIHEAP or PIPP eligibility.
- Our Comfort Series Home Comfort System furnaces carry a ten-year parts warranty across four available models.
- Regular furnace maintenance can stretch a system's working life to 10 to 15 years.
What happened to the federal tax credit for high-efficiency furnaces?
The federal Energy Efficient Home Improvement Credit, under Internal Revenue Code Section 25C, no longer applies to furnaces placed in service after December 31, 2025. The Internal Revenue Service confirms this in its guidance following the 2025 tax law changes.
If your furnace was installed and running on or before that date, it fell inside the old window and the earlier credit rules would apply to that tax year. A furnace going in during 2026, though, doesn't qualify. That's a real shift for anyone who was budgeting a new furnace around a federal write-off. It also means the math on a new install now rests almost entirely on what the equipment itself saves you month to month, not on what you'll get back from the IRS.
Does Illinois still offer a rebate for furnaces?
Illinois runs one furnace-specific program, and eligibility is narrow. The Illinois Department of Commerce and Economic Opportunity's LIHEAP Furnace Assistance covered homeowners who already qualified for LIHEAP or PIPP and had no operating furnace, for the period running October 1, 2025 through May 29, 2026.
That window has closed as of this writing, and it was never designed as an efficiency incentive. It's emergency heating assistance for households already enrolled in LIHEAP or PIPP who found themselves without a working furnace or heating fuel, per the Illinois Department of Commerce and Economic Opportunity. If you're replacing a working furnace with a more efficient one, or upgrading proactively, this program isn't built for that situation.
So how do I actually save money on a new furnace in Illinois?
Without a broad rebate on the table, the savings come from the equipment and the install, not a check from the state. Higher-AFUE furnaces burn less gas per cycle, and a properly sized, correctly installed system runs tighter and lasts longer. We build those savings in through Furnace Installation, Carrier heating equipment, and maintenance that keeps a unit running near factory efficiency for years.
As a Carrier Factory Authorized Dealer, we install Carrier furnaces alongside our own product lines. Our Comfort Series Home Comfort System furnaces come with a ten-year parts warranty, weather shield protection, and ArmorPlate coil coating, and there are four models to choose from depending on your home's size and layout. We also offer the Performance Series Heating System for homeowners who want a step up from a base model. Neither line comes with a rebate attached, but both are built to hold their efficiency over the long haul instead of degrading after a few winters.
Maintenance matters just as much as the equipment itself. A furnace that gets cleaned, tuned, and inspected every season can run 10 to 15 years without the efficiency losses that come from dirty burners, worn parts, or a clogged heat exchanger. Read more on why routine heating service matters and why HVAC maintenance is worth scheduling every year if you're trying to squeeze the most life out of the system you already have.
Other ways to cut heating costs without a rebate
A rebate isn't the only lever here. Sealing up the house so the heat your furnace makes actually stays inside does more for a winter heating bill than most homeowners expect, and it's something we handle directly.
| Service | What it does | Where it helps |
|---|---|---|
| Furnace Maintenance | Seasonal cleaning, tuning, and inspection | Keeps efficiency close to factory spec and extends system life |
| Air Leak Detection and Sealing Guidance | Finds and helps seal drafts around the home | Keeps heated air inside instead of leaking out through gaps |
| Professional Blower Door Testing | Measures air infiltration into the home | Pinpoints exactly where a house is losing heat |
| Ductwork Inspection | Checks for leaks and high static pressure | Stops wasted heated air before it ever reaches your living space |
| Zoned Heating | Splits the home into separate temperature zones | Avoids heating rooms nobody's using |
If you've never had a blower door test or a duct inspection, it's worth pairing one with your next furnace tune-up. Our guide on how to detect and seal air leaks walks through the most common trouble spots in older Downers Grove homes, and our tips for cutting holiday heating costs cover a few quick wins you can knock out before the first cold snap.
Frequently asked questions
Will Illinois offer a new furnace rebate for the 2026-2027 heating season?
The FY2026 LIHEAP Furnace Assistance window closed on May 29, 2026. LIHEAP-tied programs get run seasonally by the state, and eligibility windows and dates for the next heating season aren't set by us. Check directly with the Illinois Department of Commerce and Economic Opportunity each fall before assuming a new program is open.
What counts as a high-efficiency furnace?
A high-efficiency furnace generally carries an AFUE rating of 90 percent or higher, meaning it converts at least 90 cents of every dollar of fuel into heat instead of losing it up the flue. Standard furnaces typically fall lower than that. The higher the AFUE, the less gas it takes to heat the same space.
Can I still get the federal tax credit for a furnace I bought in 2025?
If your furnace was installed and operating on or before December 31, 2025, that installation falls inside the window the IRS set under Section 25C, and the earlier credit rules would apply to that tax year. A furnace placed in service during 2026 does not qualify under the updated rule.
Do Illinois utility companies offer furnace rebates?
Utility rebate programs shift from year to year and provider to provider, and we don't administer or track those directly. Before you buy, check with your own gas or electric utility, since program availability, amounts, and eligibility can change between billing cycles and heating seasons.
If you're weighing a new furnace this heating season and want a straight answer on what it'll cost to run in a Downers Grove winter, tell us about your current system and your timeline in the form below this article. We'll go through your options, Carrier equipment included, and help you find the real savings without waiting on a rebate that may not apply to your situation.
Find Out How You Can Save on a New Furnace
We reply fast.
What do you need help with?
How soon?