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2026 Update · Heat Pump Incentives

Heat Pump Rebates — What's Still Available in 2026

The $2,000 federal heat pump tax credit (25C) ended for systems installed after December 31, 2025. Utility rebates and the state-run Home Energy Rebates, worth up to $8,000 for income-qualified households, still apply in many places.*

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🔒 PRIVATE ⚡ INSTANT 💰 FREE
$0
federal credit for 2026 installs
$8,000
max income-qualified rebate
2 min
to your free report
Ended
25C credit for installs after 12/31/2025
$8,000
max Home Energy Rebate for a heat pump
Varies
utility rebates by provider

Where heat pump incentives come from now

The 2025 tax law ended the 25C credit for heat pumps placed in service after December 31, 2025. Two kinds of help remain: utility rebates, which many utilities offer to all customers, and the Home Energy Rebates that states run with federal funding.

Home Energy Rebates (HEAR): For households at or below 80% of area median income the program can cover the full cost of a heat pump up to $8,000, and half the cost up to $8,000 between 80% and 150%. Only some states have opened their programs, and some have stopped paying for switches from gas.
🌡️
Heat pump tax credit (25C)
Ended for installs after 12/31/2025
Ended
🏠
Home Energy Rebates (HEAR)
Income-qualified; open in about a dozen states as of October 2026
Up to $8,000
🔌
Utility rebates
Examples: Mass Save up to $8,500, NV Energy up to $3,400, PSE $1,500
Varies
🔧
Whole-home rebates (HOMES)
Based on modeled or measured energy savings; open in fewer states
Varies
Federal tax credit for a 2026 install$0

Do heat pumps still make sense without the credit?

Often. A modern heat pump delivers two to four units of heat for every unit of electricity, so it usually costs less to run than electric resistance, oil or propane heat. Against inexpensive natural gas the savings are smaller. Your report compares your current system with a heat pump using your rates.

Cold-climate heat pumps work in freezing temperatures

Cold-climate models keep heating efficiently well below freezing, which makes them practical in all but the coldest regions. HomeShark factors in your climate when estimating savings.

Which states have Home Energy Rebates open?

As of October 2026, Arizona, the District of Columbia, Georgia, Indiana, Maine, Michigan, New Mexico, New York, North Carolina, Rhode Island and Wisconsin were taking applications for at least one program. Others are still launching, and funding runs through September 30, 2031.

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Frequently asked questions

Is there still a federal tax credit for heat pumps?

No. The energy efficient home improvement credit (25C) ended for heat pumps placed in service after December 31, 2025. A heat pump installed in 2025 can still be claimed on your 2025 return.

What heat pump rebates are still available?

Utility rebates, which vary by provider, and the state-run Home Energy Rebates for income-qualified households, up to $8,000 for a heat pump where the program is open.

Who qualifies for a Home Energy Rebate?

Households at or below 150% of area median income. Those at or below 80% can have the full cost covered up to the cap. Each state runs its own program and application.

Can I combine a utility rebate with a Home Energy Rebate?

Usually, as long as the total does not exceed the project cost. Check each program's rules before you buy.

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