Disclosure: 1-800Deals is a contractor directory. We don't run any rebate program, and listings never change the facts on this page.
Short answer: In 2026 there's no federal heat pump tax credit. The $2,000 25C credit ended for heat pumps installed after Dec 31, 2025. What's left: your state's HEAR program, which can cover up to $8,000 for income-eligible households in states that are open, plus utility rebates, which often don't have income limits. Enter your ZIP in our rebate finder to see what applies where you live.
See what applies at your address. Enter your ZIP and the finder shows your state's rebate status and your local utility rebate lookups.
Find rebates by ZIP codeHeat pump money in 2026 at a glance
| Source | Status (as of Oct 13, 2026) | Amount | Who qualifies |
|---|---|---|---|
| Federal 25C tax credit | Ended for installs after Dec 31, 2025 | Was 30%, up to $2,000 | 2025 installs only |
| HEAR rebate (state-run) | Open in some states, not launched or closed in many | Up to $8,000 for a heat pump | Under 150% of area median income |
| HOMES rebate (state-run) | Open in a few states | Up to $8,000, based on whole-home savings | Any income, more for lower incomes |
| Utility rebates | Common, varies by company | Set by each utility | Usually that utility's customers |
Sources: IRS, U.S. DOE, Rewiring America. We don't list utility dollar amounts because they change during the year. Check your utility's page.
HEAR: the biggest heat pump rebate, if your state is open
The High-Efficiency Electric Home Rebate program (HEAR, sometimes written HEEHRA) was funded by Congress in 2022 and is run by each state. A heat pump for heating and cooling can get up to $8,000. Low-income households (under 80% of area median income) can have up to 100% of the cost covered, up to that cap. Moderate-income households (80% to 150%) can get up to 50%. Above 150%, you don't qualify.
Most states pay HEAR at the point of sale, so the discount shows up on your contractor's invoice. That means the contractor has to be registered with your state's program. As of our last check, states such as North Carolina, Wisconsin, Indiana, Arizona, New Mexico, Rhode Island and West Virginia were taking applications, California's single-family funds were fully reserved with a waitlist, and many states hadn't launched. Our HOMES and HEAR status table for every state has the details and official links.
Utility heat pump rebates
Your electric or gas utility may have its own rebate, and you can usually combine it with HEAR. Utility rebates tend to have a minimum efficiency rating, a list of qualifying models, and a participating-contractor rule. Many pay more for cold-climate heat pumps, or when you replace electric resistance or oil heat. To find yours:
- Search the ENERGY STAR Rebate Finder by ZIP and pick "heat pumps".
- Check DSIRE, the state-by-state incentive database run by NC State University.
- Look on your utility bill's website under "rebates" or "energy efficiency". Our guide to finding utility energy efficiency rebates walks through it.
Ductless mini-splits
Mini-splits are heat pumps, so the same programs apply. HEAR's $8,000 cap covers a ducted or ductless heat pump. Utility programs sometimes pay per indoor unit or per ton and often require that the system be the home's main heat, not a single-room add-on. Read the fine print before you pick a size.
How to actually get the rebate
- Check eligibility first. Use the rebate finder by ZIP code to see your state's status and your utility lookup.
- Air seal and insulate if you can. A tighter house can use a smaller, cheaper heat pump, and HEAR is designed around sealing first. See attic insulation rebates.
- Get two or three quotes from enrolled contractors. Ask each one, "Are you registered with the state HEAR program and with my utility's rebate program?" Get the model numbers and the AHRI certificate in writing.
- Don't install before approval. Some programs require pre-approval or a pre-install home assessment. Installing first can disqualify you.
- Keep the paperwork. Invoice, AHRI number, photos of the nameplates, and the rebate confirmation.
Ready to compare quotes? Browse local HVAC and heat pump contractors in our directory. If your panel is full, a heat pump may need an upgrade first, and HEAR can pay up to $4,000 for a panel through a licensed electrician.
Pair it with a heat pump water heater
If you're already working with an HVAC or plumbing contractor, ask about a heat pump water heater. HEAR covers those up to $1,750, and many utilities add their own rebate. See heat pump water heater rebates. A smart thermostat rebate is often a small extra on top.
Frequently asked questions
How do I get a tax rebate for a heat pump?
For installs in 2026 there's no federal tax credit. The 25C credit only covers heat pumps installed by Dec 31, 2025, claimed on your 2025 return with Form 5695. For new installs, use your state's HEAR rebate if it's open and your utility's rebate.
Is there a federal heat pump rebate in 2026?
Yes, but it's run by your state. HEAR and HOMES are federally funded and weren't repealed. HEAR can pay up to $8,000 for a heat pump for households under 150% of area median income, but only in states that have launched.
Can I combine HEAR with a utility rebate?
Usually yes. Federal rules generally let HEAR combine with other rebates as long as the total doesn't exceed the project cost, but each state and utility sets its own stacking rules. Ask both programs before you sign.
Will a heat pump really save me money?
It depends on what you're replacing and your electric rates. Savings are usually largest when you replace electric resistance heat, oil or propane. Ask your contractor for an estimate based on your past bills, not a national average.
What is the major disadvantage of a heat pump?
Up-front cost, and in very cold areas a standard model loses capacity. Cold-climate models fix most of that, and utility rebates are often higher for them. In homes with old wiring, a panel upgrade may add cost.
Sources
- IRS: OBBB energy credit FAQs
- U.S. DOE: Home Energy Rebates
- Rewiring America: Electrification rebates
- ENERGY STAR Rebate Finder
- DSIRE incentive database
Amounts and statuses were checked Oct 13, 2026. Programs change often, so confirm with the program before you sign a contract. Where we couldn't verify a figure, we say so instead of guessing.
