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 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 $100–$200 rebate through their residential efficiency program. Check xcelenergy.com for current amounts and paperwork requirements.
CenterPoint Energy Rebates
CenterPoint Energy offers $100–$150 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.
Example: Goodman GMVC96 80,000 BTU at factory-direct price of $1,100 + $800 labor = $1,900 total. 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.
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