Houston HVAC Replacement: Permits, Rebates and Licenses

In Houston, cooling is the main job. NOAA's 1991-2020 normals for Bush Intercontinental show 3,288 cooling degree days a year and 1,266 heating degree days. Replacing an AC condenser or furnace inside city limits needs a City of Houston permit. CenterPoint Energy's HVAC incentives start at $200 for systems rated 15.2 SEER2 or higher.

What does Houston's climate mean for your AC and heater?

The National Weather Service office for Houston and Galveston lists normal highs of 94.5°F in July and 94.9°F in August at Bush Intercontinental, with a normal January low of 43.7°F. Those are 1991-2020 normals. NOAA's annual normals file for the same station adds the counts that matter for equipment.

Those numbers describe a long cooling season, and humidity adds to it. The Department of Energy puts Texas in its "hot-humid" Southeast region for air conditioner standards. In that climate, an oversized unit is a real problem. A DOE Building America guide from two national labs says an oversized AC can shut off before it has removed moisture from the air. The guide tells contractors to calculate the load with ACCA Manual J and choose equipment with Manual S, not a rule of thumb. Ask to see the Manual J report before you sign.

Heat pumps and backup heat in Houston

Heating is the smaller job here. The same DOE guide says a standard air-source heat pump loses heating efficiency below about 35°F, so all-electric models carry resistance strips as backup. Houston's normal January low sits above that point. That points to a standard heat pump with backup strips, not a cold-climate model, for most Houston winters. If your home now heats with electric resistance alone, the guide says a heat pump can cut that heating electricity by 30% or more.

Rare freezes still happen. The Weather Service summary of the February 2021 winter storm lists 12°F at Bush Intercontinental on February 16. It also describes widespread power outages that lasted several days. Ask your contractor how the backup heat is sized for a night like that, and what it needs from your electrical panel.

Which HVAC rebates can Houston homeowners get in 2026?

Two utilities matter. CenterPoint Energy Houston Electric runs the electric efficiency programs, and eligibility depends on being in its service area. CenterPoint's gas utility lists Houston among its Texas natural gas service areas. Here is what each source said when we checked on October 31, 2026.

CenterPoint's replacement incentive

CenterPoint's heating and cooling page says its incentives "start at $200 and may increase, depending on your installation." Eligible equipment starts at 15.2 SEER2. Central AC, heat pumps and mini-split systems all qualify. You do not file a claim yourself. The incentive is applied directly to your installation invoice, and only when you work with a participating contractor.

The page links to a participating contractor list for the Residential and Hard-to-Reach Standard Offer Program. It named three companies when we opened it, and CenterPoint states that it does not endorse any of them. If you want the incentive, ask whether your contractor participates before you sign.

The 15.2 SEER2 bar sits above the federal floor. DOE's 2023 standards FAQ sets split air conditioners under 45,000 Btu per hour at 14.3 SEER2 in the Southeast, and larger ones at 13.8 SEER2. Split heat pumps need 14.3 SEER2 and 7.5 HSPF2. DOE says it is illegal for a contractor to install an air conditioner below the regional standard in the Southeast. Check the rating of the exact indoor and outdoor match, as our guide to comparing HVAC quotes explains.

The ComfortCheck tune-up

The ComfortCheck A/C tune-up is open to residential customers in the CenterPoint Energy Houston Electric service area, apartments excluded. Your central AC or heat pump must be at least one year old and currently working. You must not have received an A/C tune-up in the past five years. The page does not list a price, and enrollment runs through a form linked there.

Gas, state and federal money

We found no residential HVAC rebate for Houston natural gas customers. The gas appliance rebates on CenterPoint's efficiency pages are for customers in other states, such as Minnesota. The Houston rate schedules on its Texas gas tariff page include no efficiency program. If you are replacing a gas furnace, ask CenterPoint directly in case that changes.

Texas has not started the federal Home Energy Rebates. The Comptroller's State Energy Conservation Office FAQ says a launch date "has not been set and will depend on DOE approval of the final program design." It adds that Texas cannot accept receipts, and that projects started or finished before launch are unlikely to qualify. DOE's Home Energy Rebates page sends homeowners to their state energy office for status. Be wary of anyone who says this money is available in Houston today.

The federal tax credit is gone for new installs. The IRS says the Energy Efficient Home Improvement Credit covers improvements made through December 31, 2025. A system installed in Houston in 2026 does not qualify.

Do you need a permit to replace an AC or furnace in Houston?

Yes, inside city limits. The Houston Permitting Center says "the City of Houston requires a permit for the installation, repair, or replacement of condensing units." Its page on altering an HVAC system requires a mechanical permit to add or remove parts or equipment. Replacing only the heating unit, such as a furnace, has its own Replace Heater Only permit. All three list inspection as required, and each permit is valid for 180 days.

The fee scales with the job. The HVAC alteration page lists 2% of total job cost plus $47.00, and an admin fee of $33.56. On a $10,000 replacement, that adds up to $280.56. The condensing unit page bases the 2% on valuation and adds the same flat amounts. Plan review may be required, depending on the scope of work.

Only a registered contractor can pull the permit. Each page says licensed contractors must register their license with the City of Houston first. The heater page puts it plainly: the contractor "must be licensed by the TDLR and license registered with the City of Houston." The city will not schedule an inspection unless that registration is in good standing. Inspections that fail repeatedly may draw a re-inspection fee.

1. Ask who pulls the permit. In Houston, the registered mechanical contractor applies through the city's iPermits portal.
2. Get the permit number before work starts. The city asks that a copy of the permit stay on site for the inspection.
3. Ask when the inspection is booked. The contractor schedules it online or through the city's phone line, 713.222.9922, using the project number.
4. Hold the final payment until the job passes inspection.

These are the City of Houston's rules. If your home sits outside city limits, in another city or in unincorporated county land, ask that jurisdiction's building office what it requires.

How do you check a Houston HVAC contractor's license?

Texas licenses air conditioning contractors at the state level, and Houston registers that license. TDLR says contractors who install, repair or maintain air conditioning, refrigeration or heating systems need its license. Its License Data Search shows active licenses. Pick "Air Conditioning Contractors" as the license type, then search by license number, name, city, county or ZIP code. Its enforcement search lists orders with fines or sanctions from the current and two prior fiscal years.

Read the number you are given. TDLR's ACR Contracting at a Glance shows the format TACL, then the class, a number and an endorsement code. Its example is TACL/A/000000/C. E stands for environmental air conditioning, R for commercial refrigeration and process cooling or heating, and C for combined. Class A covers any size of unit. Class B covers cooling systems of 25 tons and under and heating up to 1.5 million BTU per hour.

The same TDLR sheet says a registered technician needs no exam and must work under a licensed contractor. It also says a company must employ a licensed contractor at each permanent location. If it does not when the contract is signed, it cannot collect a fee or enforce the contract.

The license number should be easy to find. Texas rule 16 TAC 75.71 requires the number and company name in letters at least two inches high on both sides of work vehicles. The number must also appear on advertising, proposals and invoices. Proposals and invoices must also carry a notice that the company is regulated by TDLR, with TDLR's phone numbers. The rule says you get an invoice for all air conditioning and refrigeration work. A quote with no license number is a reason to ask questions.

The company websites will not always help. The table below shows what we measured on the sites of Houston-area HVAC companies that advertise on Google: how many hide their Google rating, how many have no contact form, and how slowly they load on a phone. It is a small sample of advertisers, not every contractor in the city.

Use it as a checklist. If a site shows no rating, look the company up on Google Maps and read recent reviews yourself. If there is no form, call. Ask for the TDLR license number and whether it is registered with the City of Houston. Then check that number on the TDLR search before anyone comes out.

What should an AC tune-up in Houston include?

With more than a hundred days a year at 90°F or above, a Houston system gets heavy use. TDLR published a minimum inspection list in an April 2025 release urging homeowners to use only a licensed contractor. Use it to judge any tune-up you pay for. Its list includes these steps:

• check the cabinets, and tighten the compressor, fan motor, contactor and control panel connections;
• clean the condenser coils, the evaporator coil, the drain pan and the condensate line;
• check the air filters and replace them as needed;
• start the indoor blower and run a static pressure test to confirm airflow;
• check for refrigerant leaks and for the proper refrigerant charge;
• log temperatures, pressures, voltages and amperages;
• give you a written report of any problems left uncorrected.

What should you do if you smell gas in Houston?

CenterPoint Energy's gas leak page gives these steps for a suspected leak inside your home.

1. Leave immediately on foot. Do not use light switches, phones (including cell phones) or a car, or anything that could cause a spark.
2. When you are a safe distance away, call CenterPoint at 888-876-5786 and call 911. Never assume someone else has reported it.
3. Alert your neighbors. CenterPoint checks suspected natural gas leaks at no cost to you.
4. Never try to repair a gas leak yourself. Leave repairs to a trained technician.

For a leak outside, CenterPoint says to move upwind until you can no longer smell gas, call CenterPoint and 911, and warn others to stay away. It also notes that some people cannot smell the odorant, and that the odor can fade. Residential methane detectors can add a warning if you install them by the maker's instructions. For furnace safety signs, see our guide to a cracked heat exchanger.

Questions people ask