NJ rebates in 2026:
what's real, what's gone.
A plain guide to the utility rebates North Jersey homeowners can actually claim on heating, cooling and water-heating equipment — and a clear note on the federal credits that ended.
Read this first
What changed for 2026
The federal tax credits are gone. The Section 25C credit for furnaces, boilers, central AC, heat pumps and water heaters does not apply to equipment placed in service after December 31, 2025. Any website still promising "up to $2,000 back from the IRS" on a 2026 install is out of date. What remains for Northern NJ homeowners is the utility programs below, which are real, current and in several cases instant.
New Jersey's residential HVAC and water-heating rebates are delivered by the utilities under the Board of Public Utilities' Triennium 2 framework, which runs from January 1, 2025 through June 30, 2027. Which program applies to you depends on who sends your electric and gas bills, not on your town.
PSE&G
PSE&G instant rebates (most of our service area)
| Equipment | Efficiency threshold | PSE&G instant rebate |
|---|---|---|
| Central AC (split or package) | SEER2 ≥15.2 / ≥17, EER2 ≥12 | $60 / $120 |
| Air-source heat pump (split) | SEER2 ≥15.2 / ≥17.1, EER2 ≥11.7, HSPF2 ≥7.8 | $300 / $450 |
| Cold-climate air-source heat pump | SEER2 ≥15.2, EER2 ≥10, HSPF2 ≥8.1, COP ≥1.75 at 5°F | $600 |
| Gas furnace (replacing non-condensing) | AFUE ≥95% | $540 |
| Gas boiler (replacing non-condensing) | AFUE ≥90% / ≥95% | $540 / $600 |
| Gas combi boiler | AFUE ≥95% / ≥97% | $780 / $1,050 |
| Heat pump water heater | ENERGY STAR | $450 |
| Gas storage tank water heater (power-vented) | UEF ≥0.64 (<55 gal) or ≥0.78 | $240 |
| Indirect tank with ≥90% AFUE boiler | — | $150 |
| Smart thermostat | New or replacing manual/programmable | $60 |
PSE&G supplies both electric and gas to most of Passaic, Bergen, Essex, Hudson, Union and much of Morris County. Rebates are instant — a participating contractor deducts them on the invoice. Income-qualified households receive an additional $300 per measure (thermostats excluded). Purchases must be made between January 1, 2025 and June 30, 2027.
PSE&G also offers 0% on-bill repayment up to $25,000 for HVAC, with no credit check, and separate, larger incentives under its Building Decarbonization program for homes switching fully to cold-climate heat pumps; those amounts vary by project and are confirmed through a participating contractor. Source: myhomeenergy.pseg.com.
Elizabethtown Gas
Elizabethtown Gas rebates (Union County and parts of Morris)
| Equipment | Threshold | Elizabethtown Gas rebate (mail-in) |
|---|---|---|
| Gas furnace | AFUE ≥95% | $900 |
| Gas boiler | AFUE 90–94.99% / ≥95% | $900 / $1,000 |
| Gas combi boiler | AFUE ≥95% / ≥97% | $1,300 / $1,750 |
| Gas storage water heater | UEF ≥0.64 / ≥0.78 | $400 |
| Indirect tank | — | $250 |
| Central AC | SEER2 ≥15.2 / ≥17 | $100 / $200 |
| Smart thermostat | max 2 | $100 |
Mail-in or online within 120 days of purchase for equipment installed January 1, 2025 through June 30, 2027. Elizabethtown's Switch to Gas program for oil-to-gas conversions combines these equipment rebates with 0% on-bill financing; the service line and meter are typically installed at no charge. Source: etgsaveenergy.clearesult.com.
JCP&L
JCP&L rebates (parts of Morris, Passaic and Union)
| Equipment | Threshold | JCP&L rebate (mail-in / online) |
|---|---|---|
| Air-source heat pump | SEER2 ≥15.2 / ≥17.1 | $500 / $750 |
| Cold-climate heat pump | HSPF2 ≥8.1, EER2 ≥10 | $1,000 |
| Central AC | SEER2 ≥15.2 / ≥17 | $100 / $200 |
| Heat pump water heater | ENERGY STAR | $750 |
| ECM furnace fan | — | $100 |
Submitted after installation by mail, email or the contractor portal; on-bill financing through NEIF. Rockland Electric customers in northern Bergen and Passaic have a similar instant program with different amounts — ask us. Source: residential.energysavenj.com.
How it works
How Rescue handles rebates on your job
Program amounts and thresholds above were verified against the utilities' published program pages in September 2026 and can change; the utility's current terms govern. We re-check before every install.
Straight answers
Rebate questions we get
Is the federal 25C heat pump tax credit still available?
No. Under Public Law 119-21, the Section 25C Energy Efficient Home Improvement Credit is not allowed for property placed in service after December 31, 2025, and the Section 25D residential clean energy credit ended for expenditures after the same date. Equipment installed in 2026 does not qualify for a federal credit. Utility rebates are what remain.
Who applies for the rebate?
PSE&G instant rebates are applied on the invoice by a participating contractor — you see the deduction on the day. JCP&L and Elizabethtown Gas rebates are submitted by the homeowner or the contractor after installation, within the program deadline.
Can I stack utility rebates with financing?
Yes. PSE&G, JCP&L and Elizabethtown Gas each offer 0% on-bill repayment programs for qualifying equipment, separate from the rebate. Ask us to price the job both ways.
What about the state Home Energy Rebates (HEAR / HOMES)?
New Jersey's federally funded Home Energy Rebate programs were designed for income-eligible households and, as of September 2026, have not launched for consumers. We will update this page if that changes.
Does Rescue file the paperwork?
For PSE&G instant rebates, yes — it happens on our invoice. For mail-in programs we complete the contractor portion and give you everything you need to submit.
