Atmos Energy, the natural-gas utility for much of North and Central Texas, runs the SmartChoice appliance-rebate program for its Mid-Tex Division — and it is the one genuinely live Texas rebate aimed at a gas-furnace replacement. It pays $300 for a high-efficiency furnace at 90% AFUE or higher and $350 at 95% AFUE or higher, plus $75 for an ENERGY STAR smart thermostat.
The rebate's real value is in tilting the efficiency decision. When you replace a furnace you choose a tier, and the cheapest option is still a base 80% AFUE unit. The $350 level lines up with 95% AFUE condensing furnaces — the same efficiency the federal furnace standard will require for units built from December 2028 onward — so a homeowner replacing now can buy ahead of that curve and be paid for doing it. Factor the rebate against the higher up-front price (and the new PVC venting a condensing furnace needs) when you compare quotes.
The single most important detail is territory. The rebate follows your Atmos natural-gas meter, and the Mid-Tex Division covers the DFW suburbs, Fort Worth, Arlington, Waco, and the Temple/Killeen area but excludes the City of Dallas. Atmos's national marketing also advertises higher 'up to $600' furnace figures that are out-of-state maximums — the verified Texas Mid-Tex amounts are $300, $350, and $75. Confirm your division before relying on a number.
To claim it, the furnace must be ENERGY STAR–rated and meet the AFUE threshold for its tier, and you file within 12 months of installation with your Atmos bill and an itemized invoice. Note that the federal Section 25C tax credit that used to add up to $600 for a 97% AFUE furnace expired for systems placed in service after December 31, 2025 — in 2026 this utility rebate is the incentive that remains. Pair it with a combustion analysis on the new unit so you can confirm the efficiency you paid for.