Most people start asking about rebates when the furnace is already making a noise they don't like, or when a neighbour on Griffin Street mentions they got money back on a heat pump. It is a fair question, and the honest answer is that it depends on what you are buying, when you apply and whether you do things in the right order. Programs in Canada and Ontario change often, open and close with funding, and rarely work the way the ads suggest.
This guide won't list amounts, because they change and any figure printed here would be out of date soon enough. What it will do is walk you through the questions worth asking before you sign anything, so you don't lose a rebate on a technicality.
Is there a tax credit for a new furnace in Canada?
For most households replacing a gas furnace with another gas furnace, there usually isn't a tax credit you can claim on your return simply for buying it. That surprises people, because the word "credit" gets used loosely in advertising.
What has existed over the years is a mix of grants, rebates and low-interest loans, mostly aimed at reducing energy use. Those programs tend to favour:
- Heat pumps, especially cold-climate models, over a straight furnace swap
- Upgrades that come with a home energy assessment before and after the work
- Insulation, air sealing and windows alongside the heating equipment
If someone tells you a new furnace comes with a tax credit, ask them to name the program and show you where the rules are published. If they can't, treat the claim with care.
Can I get a rebate from the Ontario government for a new furnace?
Sometimes, but the answer moves with the year. Provincial and utility programs come and go, and a high-efficiency gas furnace on its own has qualified at some times and not at others. In Smithville, natural gas comes from Enbridge Gas, which serves the Township of West Lincoln, so any utility-run efficiency program for gas customers here will come through them. It is worth checking their current offers directly rather than relying on what a friend got two years ago.
The things that usually decide whether you qualify:
- Whether you need an energy assessment before any equipment is removed
- Whether the new unit has to meet a minimum efficiency rating or appear on an approved list
- Whether the installer has to be registered with the program
- Whether you must apply within a set window after the work is finished
The first point catches the most people. If the program requires a pre-assessment and the old furnace comes out first, there is often no way to fix that afterwards.
Can I get a rebate for an air conditioner in Ontario?
A conventional central air conditioner has rarely been the focus of rebate programs. A heat pump, which cools in summer and heats in the shoulder seasons and through much of the winter, is where most of the incentive money has gone in recent years.
That is worth thinking about if your air conditioner is near the end of its life anyway. In a house in Station Meadows, for example, the central air and the furnace often went in around the same time and are both getting tired. Replacing the AC with a heat pump that works alongside the existing gas furnace, sometimes called a hybrid set-up, can make you eligible for programs a plain AC would not. The furnace covers the coldest nights and the heat pump handles the rest. Our page on heat pumps explains how that pairing works.
Work on the refrigeration side has rules of its own. Work is performed by 313A refrigeration and air conditioning mechanics, which is what Ontario requires for this compulsory trade, and many rebate programs ask for proof that the installer holds the right certificate.
Your house type changes what makes sense
Rebates are only worth chasing if the equipment suits the house. Smithville has three fairly distinct kinds of home, and each one points in a different direction.
In the old village core along Griffin Street, St. Catharines Street, Canborough Street and Station Street, many houses started on wood or coal and were converted to oil and then gas. These homes often have an oversized converted furnace, an old chimney and ductwork that may be undersized or wrapped in old insulation. Moving to a high-efficiency furnace that vents through the side wall can leave a gas water heater alone in a chimney built for a much bigger fire, and that chimney may need relining. Ductwork that is too small for a modern system is another common surprise. Sometimes a ductless system does more good here than any rebate on a ducted unit.
In the newer subdivisions off Spring Creek Rd. and the Marz Subdivision, the furnaces are mostly high-efficiency condensing units with plastic side-wall vents in tight houses. Those owners are less likely to be replacing equipment soon, but when they do, a heat pump add-on is often a straightforward fit.
Whatever the house, the size of the new equipment should come from the house itself, not the label on the old unit. Our guide on what size furnace a Smithville house needs goes through that.
Check the installation rules as well as the rebate rules
A rebate application almost always assumes the equipment was installed properly. In Ontario, gas appliances must be installed by a contractor registered with the Technical Standards and Safety Authority, and Work is performed by TSSA-certified gas technicians to the CSA B149.1 Natural Gas and Propane Installation Code. A job that skips this can put both the rebate and the manufacturer's warranty at risk, and the manufacturer's warranty often depends on registration within a set time after installation.
It is also a good moment to check your carbon monoxide alarms. The Ontario Fire Code requires a working CO alarm next to each sleeping area in a home with a fuel-burning appliance, a fireplace or an attached garage. Replacing a furnace doesn't change that, and an inspector or assessor may notice if one is missing.
A sensible order of steps
If you are thinking about replacing a furnace or air conditioner in the next year, this order tends to protect you:
- Look up what programs are open now, through the federal government, the province and Enbridge Gas
- Read whether a pre-installation energy assessment is required, and book it before anything is removed
- Get written prices for more than one option, such as a straight furnace replacement and a hybrid heat pump set-up
- Confirm the specific model numbers are eligible before you approve the quote
- Keep every invoice, model and serial number, and the assessment reports together
- Apply within the deadline once the work is done
If your furnace has already failed in November, when normal highs are around 8°C and lows near freezing, you may not have time for an assessment. In that case a repair to get you through the winter, followed by a planned replacement in spring, can sometimes be the better route financially.
Timing and a growing township
West Lincoln's population is projected to more than double, and the Smithville Master Community Plan enlarges the urban area to make room. More new homes means more demand on contractors and on program funding in busy seasons. Planning a replacement before the old system quits gives you the best chance of catching a program while it is open.
When you are ready to compare options, our page on furnace installation and replacement explains how we size and quote, and we check current rebate programs at quote time.