Minnesota homeowners replacing a furnace or AC unit have access to some of the best utility rebate programs in the country. Here's a breakdown of what's available, who qualifies, and how to make sure you don't leave money on the table.
Xcel Energy Rebates (Natural Gas Furnaces)
Xcel Energy offers rebates for high-efficiency furnace replacements for residential customers in the Minneapolis metro area and surrounding regions.
Buy the same name-brand HVAC system the pros install — shipped factory-direct to your door. No middleman, 5-star rated, and financing available.
- 95%+ AFUE furnace: Up to $500 rebate
- Qualifying thermostat (smart thermostat): Up to $100 rebate
- Central AC (18+ SEER): Up to $300 rebate
To qualify, the equipment must be installed by a licensed contractor, and you must submit the rebate form within 90 days of installation. Rebate amounts change yearly — check xcelenergy.com/savings for current amounts.
CenterPoint Energy Rebates
CenterPoint serves much of the Twin Cities metro. Their current high-efficiency natural gas furnace rebate program offers:
- 96%+ AFUE furnace: Up to $300–$600 depending on current program
- Smart thermostats: Up to $100
CenterPoint rebates are processed through their Energy Efficiency Program. Visit centerpointenergy.com for current program details and forms.
Federal Tax Credits (IRA Energy Credits)
Under the Inflation Reduction Act, homeowners who install qualifying high-efficiency HVAC equipment may be eligible for a federal tax credit of up to $600 per year for furnaces and air conditioners meeting efficiency thresholds.
- Qualifying furnaces: 97%+ AFUE (gas) — some 96% models also qualify
- Qualifying AC: 16+ SEER2
- Credit: 30% of equipment cost, up to $600 for furnace/AC (The federal 25C credit expired for equipment placed in service after December 31, 2025, so it does not apply to a 2026 installation.)
- Max annual credit across all energy improvements: $1,200
This is a tax credit (reduces your tax bill dollar-for-dollar), not a rebate. Consult your tax preparer for specifics on how to claim it.
Minnesota State Rebates
Minnesota periodically offers state-level rebates through the Department of Commerce and utility-funded programs. These vary year to year. Check the Minnesota Commerce Department Energy Information Center for current offerings.
How to Stack Rebates
The good news: federal tax credits, utility rebates, and state rebates are generally stackable. A homeowner replacing a furnace with a 96%+ Goodman model could potentially receive:
- Xcel Energy rebate: $500
- Federal tax credit: $600
- Smart thermostat rebate: $100
- Total potential savings: $1,200+
This is on top of the $2,000–$5,000 already saved by buying factory-direct instead of through a contractor.
How Furnace Direct Helps
When you buy through Furnace Direct, we'll help you identify which Goodman models qualify for available rebates and provide the documentation you need (model number, serial number, efficiency rating) to submit your rebate forms.
Browse Qualifying High-Efficiency Furnaces →
Have questions about rebate eligibility for a specific model? Call us at (888) 762-1334 — we'll look it up with you.
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