Minnesota Furnace Replacement Rebates 2026: Xcel Energy, CenterPoint & Federal Tax Credits

Minnesota homeowners replacing a furnace in 2026 can stack multiple incentives. Here's a complete breakdown of what's available — and how factory-direct pricing makes them even more valuable.

Federal Tax Credit (IRA Section 25C)

The Inflation Reduction Act's Section 25C credit allows homeowners to claim 30% of furnace costs, up to $600 (25C expired after Dec 31, 2025) for qualifying high-efficiency furnaces. Requirements: 96% AFUE or higher, properly installed by a licensed contractor. The Goodman GMVC96 qualifies.

Xcel Energy Rebates (Minneapolis/St. Paul)

Xcel Energy customers replacing a furnace with a 96%+ AFUE model can claim $200–$400 rebate through their residential efficiency program. Check xcelenergy.com for current amounts and paperwork requirements.

CenterPoint Energy Rebates

CenterPoint Energy offers $200–$400 rebates on qualifying high-efficiency furnaces for residential customers. Available across their Minnesota service area.

Stacking Incentives with Factory-Direct Pricing

Here's where it gets interesting: factory-direct pricing already saves you $3,000–$5,000 vs. a contractor quote. Stack the federal 30% credit (up to $600), Xcel rebate ($200), and CenterPoint rebate ($150), and your net cost is even lower. (The federal 25C credit expired for equipment placed in service after December 31, 2025, so it does not apply to a 2026 installation.)

Installation is quoted separately for your home — call (888) 762-1334 for the best savings. Minus $570 federal credit + $350 utility rebates = $980 net out-of-pocket. A traditional contractor for the same job: $6,500 minus $350 in rebates = $6,150 net. Difference: $5,170 in savings.

Ready to save? Check if we serve your Minnesota area or call (888) 762-1334.