If you are replacing a furnace, an air conditioner or both in Menlo Park, Atherton or Portola Valley, start with one change: the federal tax credit for energy-efficient heat pumps, central air conditioners and furnaces ended for equipment installed after December 31, 2025. What remains are rebates from your utility, regional and state programs and equipment makers. They are real, but they open, change and close during the year, so the only rebate worth planning around is one you have confirmed for your address, your equipment and your installation date.
The federal credit: what the end date means
The cutoff follows the installation, not the payment. A system paid for in December 2025 but installed in January 2026 does not qualify. If your equipment was installed in 2025 or earlier, the credit belongs to that year’s tax return, and a tax professional can tell you whether you qualify. Be wary of any sales pitch that still counts the federal credit toward a new installation.
Kinds of programs and what to check
| Kind of program | Who runs it | Usually aimed at | Check first |
|---|---|---|---|
| Utility | PG&E, the gas and electric utility for these towns | Efficient equipment and controls | Whether the offer is open today and how it is paid |
| Regional | BayREN, whose area includes San Mateo County | Whole-home upgrades: insulation, duct sealing, heat pumps | Steps that must happen before work starts |
| State | California programs, funded in rounds | Mostly heat pumps; some limited by household income | Income rules, funding left, contractor requirements |
| Manufacturer | The equipment maker | Certain product lines in a set window | Purchase dates, registration, which models count |
If your electric bill lists a separate electricity generation provider, look at its offers too; some local providers fund their own heat pump incentives.
Timing: the order that keeps a rebate
- Before the estimate. Look up what is open for your address and utility account. Note anything that needs a reservation, pre-approval or a home assessment before work begins; an energy audit is sometimes that first step.
- On the estimate. Ask for the model numbers of the indoor and outdoor units, their efficiency ratings as a matched pair, and the full scope. Many programs judge the matched combination, not the outdoor unit on its own. Our estimates for new and replacement systems are free and come in writing.
- Before you sign. Confirm whether the program requires a participating contractor, a permit or a minimum efficiency level, and whether the money comes to you as a check or as a discount on the invoice.
- After installation. Apply before the deadline. Keep the final invoice, the permit sign-off and a photo of each unit’s nameplate.
What not to count on
- An amount quoted months ago. Funding and rules change, sometimes mid-season.
- Two programs stacking. Some allow it; others reduce one payment by the other.
- A rebate as your down payment. Checks arrive after installation, often weeks later. Our financing page explains how to keep them out of the loan math.
- Approval. No contractor, us included, can promise that a program will pay. The program decides.
Notes for homes here
Many Menlo Park homes are more than 50 years old, with older ductwork and patchy insulation. Whole-home programs often look at the ducts and the insulation as well as the equipment, and sealing ducts first can let a smaller heat pump do the job. In Atherton, where one house may run two or more systems, ask whether a program counts each system or caps the whole home. And switching from a gas furnace to a heat pump moves heating from the gas bill to the electric bill, so ask PG&E how your rate plan treats that before you decide.
For a longer walk-through of state, utility and regional programs, read our guide to California HVAC rebates.