Last updated October 2026. Incentives change fast, so confirm with each program before you sign.
Investing in a new HVAC system can be a daunting expense. We understand that the cost can be overwhelming, especially when deciding what’s best for your home and your family's comfort. 
With over 17 years of experience in the HVAC industry, we at A&E Plumbing, Heating and Air are well-versed in helping homeowners navigate these challenges.
But there’s good news for Gresham homeowners: there are various local and federal tax breaks and rebates available that can significantly reduce the financial burden of upgrading your HVAC system.
These incentives are designed not only to make energy-efficient improvements more affordable, but also to promote environmental sustainability and help you save money in the long run.
An HVAC upgrade doesn’t have to break the bank: between A&E’s financing options and opportunities to save on both federal and local levels, it’s never been easier to cut costs.
Federal Tax Credits: Ended for 2026 Installs
The federal tax credits for home HVAC upgrades are gone for new installs. The IRS says the Energy Efficient Home Improvement Credit (25C) is not allowed for property placed in service after December 31, 2025, and the Residential Clean Energy Credit (25D), which covered geothermal heat pumps, is not allowed for expenditures made after December 31, 2025. If your system was installed in 2025, you claim the credit on your 2025 return using Form 5695, and a tax professional can tell you what applies to you. For a system installed now, the money that’s left is in the Oregon and utility programs below.
Oregon State Programs
The Oregon Department of Energy runs the state’s heat pump programs, but on October 9, 2026 none had money open for owner-occupied homes in Gresham. The Oregon Heat Pump Purchase Program (HP3) had no funds left for existing owner-occupied homes (funds remained for rentals and new construction), and the Community Heat Pump Deployment Program’s Metro region, which covers Gresham, was fully reserved. The federally funded HOMES and HEAR rebates weren’t open yet. Check the Oregon Department of Energy’s incentives page for the latest status.
Local Rebates for Gresham Homeowners
1. Energy Trust of Oregon Rebates
The Energy Trust of Oregon offers incentives for energy-efficient home improvements. Gresham is served by Portland General Electric, so most homes qualify for Energy Trust of Oregon’s heat pump incentives: $1,000 to $3,000 for a ducted heat pump, $800 to $1,800 for a ductless heat pump and $1,000 to $2,000 for an extended capacity (cold-climate) heat pump. The higher amounts are mostly for homes replacing electric heat, rental properties and income-qualified households.
How to Apply:
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Visit the Energy Trust of Oregon website and find the list of qualifying HVAC systems.
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Hire a qualified contractor to install the system.
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The contractor applies the incentive to your invoice, so there’s usually no form for you to fill out.
2. Portland General Electric (PGE) offers
Local utility companies like Portland General Electric PGE offer rebates for energy-efficient HVAC installations. These rebates can significantly reduce the cost of new systems.
How to Apply:
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Check the utility company’s website for eligible HVAC systems.
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Use a contractor who participates in the rebate program.
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Complete the rebate application and submit it with your installation invoice.
3. Low-Income Weatherization Assistance
Gresham is in Multnomah County. Income-qualified households may get free or low-cost weatherization and heating repairs through Multnomah County’s weatherization program. Contact the county to check eligibility and schedule an energy assessment. 
4. NW Natural Gas Residential Rebates
NW Natural Gas offers rebates to customers who upgrade to energy-efficient natural gas HVAC systems, including high-efficiency furnaces and water heaters. These incentives aim to help reduce energy usage and improve home comfort.
How to Apply:
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Check the NW Natural Gas website for a list of qualifying HVAC systems and rebate amounts.
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Hire a licensed contractor to perform the installation.
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Submit the completed rebate application with the required documentation, including proof of purchase and installation.
Not Sure Which Programs Apply? Start With Your Utility Bills
Most Gresham homes get electricity from Portland General Electric (PGE) and natural gas from NW Natural, and that decides which incentives you can use. Energy Trust of Oregon’s heat pump incentives are for PGE and Pacific Power customers, so most Gresham homeowners qualify, and the biggest amounts go to homes replacing electric heat. If you heat with gas, ask about NW Natural’s offers and Energy Trust’s income-qualified furnace incentives. When we come out for an estimate, we’ll look at your current system and tell you which programs apply before you decide anything. Call our Gresham office at (503) 618-9646.
HVAC Manufacturer Rebates
Many HVAC manufacturers, such as Trane, offer rebates directly to consumers as an incentive to purchase their energy-efficient products. These rebates can significantly
reduce the upfront cost of installing new HVAC systems, including high-efficiency air conditioners, furnaces, heat pumps, and smart thermostats.
To take advantage of these rebates, homeowners typically need to purchase qualifying equipment from an authorized dealer, such as A&E Plumbing, Heating and Air. After the installation, consumers must submit a rebate application along with proof of purchase and installation to the manufacturer.
Discover How A&E Plumbing, Heating and Air Can Help You Qualify for Savings
Navigating the array of HVAC tax breaks and rebates available to Gresham residents can be overwhelming, but it is well worth the effort.
These incentives provide significant financial relief, making it easier to invest in energy-efficient home improvements that not only enhance your comfort but also contribute to a more sustainable environment.
At A&E Plumbing, Heating and Air, we are dedicated to helping our customers maximize their savings through these programs. Our team of experts bring years of experience in helping homeowners just like you in selecting the right HVAC system, ensuring it meets all eligibility requirements, and guiding you through the application process for state, utility and manufacturer rebates.
By leveraging these opportunities, you can enjoy a more comfortable home and lower energy bills while making a positive impact on the environment. Let’s connect today to explore how we can help you take advantage of these valuable incentives.
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