The federal heat pump tax credit is gone. It expired December 31, 2025, and installations completed in 2026 don’t qualify. But there’s still real money available in the form of heat pump rebates — if you know which programs are still open and which ones already ran out.
The heat pump rebate landscape in 2026 is more complicated than most online guides reflect. This page covers what’s actually available right now: the IRA rebate programs that replaced the federal tax credit, what each state is offering, how to stack incentives, and what to do if your state’s program hasn’t launched yet.
Your state matters more than ever in 2026. A homeowner in Rhode Island can receive up to $11,500 in rebates on a comparable install that gets a $450 rebate in Pennsylvania. Look up your state in the table below before talking to any contractor.
For the full picture on heat pumps for your home, the Heat Pumps for Homeowners guide covers everything — this article focuses specifically on rebates and incentives: what’s available, by state, in 2026.
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Table of Contents
- What Changed in 2026 (Read This First)
- HEAR / HEEHRA: The Federal Heat Pump Rebate
- Find Your State’s Heat Pump Rebate
- Heat Pump Rebate by State — 2026 Table
- Heat Pump Water Heater Rebates
- Can You Stack Your Heat Pump Rebate in 2026?
- How to Apply for a Heat Pump Rebate
- What If My State Hasn’t Launched Yet?
- Frequently Asked Questions
- Your Next Step
What Changed in 2026 (Read This First)
Three things happened at the end of 2025 that most heat pump articles haven’t caught up with.
The Section 25C federal tax credit expired December 31, 2025. This was the credit that let homeowners claim up to $2,000 on qualifying heat pump installations. It was eliminated under the One Big Beautiful Bill Act, signed July 4, 2025. If your heat pump was installed and placed in service by December 31, 2025, you can still claim it on your 2025 tax return. For any installation completed in 2026, there is no federal tax credit. IRS source; DOE rebate programs page. One caveat: geothermal heat pumps fall under Section 25D, which survived the legislation. That 30% credit is still available through 2032. This guide covers air-source and ducted/ductless heat pumps only.
The IRA’s HEAR rebate program is still alive — and in 2026 it’s the primary federal incentive pathway. HEAR (Home Electrification and Appliance Rebates, also called HEEHRA in many states’ materials) is a direct rebate applied at the point of sale, not a tax credit. You don’t file anything with the IRS — the discount appears on your contractor invoice. The catch is that HEAR is income-limited. Households above 150% of Area Median Income don’t qualify at all, and the program is distributed by states, not the federal government. As of March 2026, it’s live in 23 states. Several others are still building out their applications.
California’s HEAR program is fully reserved. California burned through its single-family allocation quickly. As of February 24, 2026, no new applications are being accepted for single-family homes. If you’re in California, skip the HEAR section entirely and go straight to utility rebates through programs like PG&E or your local investor-owned utility.
New refrigerant rules took effect January 1, 2026. The EPA’s Technology Transition Rule now requires that heat pump systems eligible for rebates use refrigerants with a global warming potential (GWP) of 700 or lower. R-410A, used in most heat pumps installed over the last 15 years, has a GWP over 2,000 and no longer qualifies for HEAR or most state rebate programs. When getting quotes, confirm the system uses R-32, R-454B, or another next-generation refrigerant, or you’ll lose rebate eligibility at the point of application.
HEAR / HEEHRA: The Federal Heat Pump Rebate That Replaced the Tax Credit
HEAR works like this: if you’re income-eligible, the federal heat pump rebate is subtracted directly from your installation invoice. No waiting for a tax refund. Your contractor applies through a state-run portal on your behalf.
Eligibility is based entirely on your household income relative to your county’s Area Median Income (AMI). AMI varies by location: the same $65,000 income can be “low income” in one county and “moderate income” in another. You can look up your county’s AMI through HUD’s income limits tool.
The HEAR rebate tiers for heat pump installations:
| Household Income | HEAR Rebate — Heat Pump | HEAR Rebate — Heat Pump Water Heater | Coverage |
|---|---|---|---|
| ≤80% AMI (low income) | Up to $8,000 | Up to $1,750 | 100% of project costs |
| 80–150% AMI (moderate income) | Up to $4,000 | Up to $875 | 50% of project costs |
| >150% AMI | $0 | $0 | Not eligible |
The $14,000 total household cap applies across all HEAR rebates combined: heat pump, water heater, electrical panel upgrades, and any other qualifying equipment. HEAR rebates can be stacked with state programs and utility rebates; there’s no federal rule preventing that combination.
Which states have HEAR live right now?
As of March 2026, these 23 states have at least one active HEAR or HOMES program accepting applications: Arizona, California (multifamily only; single-family fully reserved), Colorado, Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and Wisconsin. Florida and South Dakota have opted out entirely and will not receive federal rebate funding.
Find Your State’s Heat Pump Rebate
Select your state to see current program status, max rebate, and where to apply.
Select a state above to see its current program status and rebate amounts.
Heat Pump Rebate by State — 2026 Reference Table
The table below covers primary state-level rebate programs for air-source heat pump installations in 2026, giving you a practical overview of each state’s heat pump rebate. Amounts are maximums; your actual rebate may be lower depending on system size, income, and available funding. HEAR availability is noted per state. Click any column header to sort.
| State | Primary Program | Max Heat Pump Rebate | HEAR Status | Income Limit? |
|---|---|---|---|---|
| Massachusetts | Mass Save | $8,500 standard / $13,500 income-qualified | Open | No (standard) / Yes (enhanced) |
| Rhode Island | Clean Heat RI | Up to $11,500 (60% of costs) | Open | No income limit for state program |
| New Jersey | NJ Clean Energy / Whole Home + 0% HEAT Loan | Up to $7,500 rebate + 0% interest financing up to $25,000 | Open | Partial income tiers |
| Colorado | Colorado HEAR + Xcel Energy + CO state heat pump tax credit | Up to $8,000 HEAR + utility rebates + $1,000 state credit (point-of-sale, Jan 2026) | Open | Yes (HEAR portion) |
| New York | NY State Clean Heat / NYSERDA | Varies by utility ($500–$4,000+) | Open | Income tiers for enhanced amounts |
| Maine | Efficiency Maine | Up to $4,500 | Open | Income-qualified tiers available |
| Vermont | Efficiency Vermont | Up to $1,200–$2,600 | Open | No income limit for base rebate |
| Connecticut | Energize CT | Up to $1,500 | Open | Income tiers available |
| Michigan | HEAR + DTE / Consumers Energy | HEAR up to $8,000 + utility rebates | Open | Yes (HEAR portion) |
| Minnesota | HEAR + Xcel / CenterPoint | HEAR up to $8,000 + utility rebates | Open | Yes (HEAR portion) |
| Washington | WA HEAR + utility programs | HEAR up to $8,000 + utility rebates | Open | Yes (HEAR portion) |
| Oregon | Oregon HEAR + Energy Trust | HEAR up to $8,000 + up to $1,500 ETO | Open | Yes (HEAR portion) |
| Virginia | HEAR + Dominion Energy | HEAR up to $8,000 + utility rebates | Open | Yes (HEAR portion) |
| Maryland | EmPOWER Maryland + HEAR | HEAR up to $8,000 + EmPOWER rebates | Open | Yes (HEAR portion) |
| North Carolina | HEAR + Duke Energy | HEAR up to $8,000 + utility rebates | Open | Yes (HEAR portion) |
| New Hampshire | HEAR + Eversource / Liberty | HEAR up to $8,000 + utility rebates | Open | Yes (HEAR portion) |
| California | TECH Clean California / HEEHRA | Single-family FULLY RESERVED (Feb 24, 2026) | Reserved | Yes — currently unavailable |
| Pennsylvania | HEAR + utility programs (PPL, PECO+EAP) | PPL: ~$450; PECO+EAP: up to ~$1,700 (SEER2 18.0+) + HEAR up to $8,000 if income-qualified | Open | Yes (HEAR portion) |
| Georgia | HEAR + Georgia Power | HEAR up to $8,000 + utility rebates | Open | Yes (HEAR portion) |
| Arizona | HEAR + APS / SRP | HEAR up to $8,000 + utility rebates | Open | Yes (HEAR portion) |
| Illinois | HEAR + ComEd / Ameren | HEAR up to $8,000 + utility rebates | Open | Yes (HEAR portion) |
| Nevada | HEAR + NV Energy | HEAR up to $8,000 + utility rebates | Open | Yes (HEAR portion) |
| New Mexico | HEAR + PNM / NMGAS | HEAR up to $8,000 | Open | Yes (HEAR portion) |
| Hawaii | HEAR + Hawaiian Electric | HEAR up to $8,000 + utility rebates | Open | Yes (HEAR portion) |
| Wisconsin | Focus on Energy + HEAR | HEAR up to $8,000 + Focus on Energy | Open | Yes (HEAR portion) |
| Ohio | Utility rebates (AEP, FirstEnergy); HEAR pending | Limited utility rebates; HEAR expected mid-2026 | Pending | Depends on utility |
| Texas | Utility programs only (Austin Energy, CPS Energy, Oncor, CenterPoint — no state program) | Austin Energy ~$3,000; Oncor up to $600; CPS Energy up to ~$700; varies by utility | None | N/A — utility programs only |
| Florida | Utility programs only (opted out of IRA) | Varies by utility | Opted out | N/A |
| South Dakota | None | $0 | Opted out | N/A |
Rebate amounts and program status change frequently — some of these figures will be out of date by the time you read this. Always verify current availability directly with your state energy office before making any installation decisions. For states marked “Pending,” check your state energy office website, as programs are expected to open throughout 2026.
Heat Pump Water Heater Rebates
Heat pump water heaters deserve their own section because the rebate rules are different, and in some cases more accessible, than heat pump HVAC rebates.
Under HEAR, the heat pump water heater rebate is separate from the HVAC rebate. A household at or below 80% AMI can receive up to $1,750 for a heat pump water heater on top of the $8,000 HVAC rebate. These don’t pull from the same line item. A household between 80–150% AMI can receive up to $875.
Several state programs also offer standalone heat pump water heater rebates that don’t require income qualification. Rhode Island’s Clean Heat RI program offers $2,500. Massachusetts’s Mass Save offers a separate rebate for qualifying units. Check your state energy office’s residential rebates page specifically; many homeowners miss these because they’re searching only for HVAC rebates.
The same eligibility requirements apply: ENERGY STAR certified, GWP ≤700 refrigerant. Most major brands sell qualifying models — the Rheem ProTerra 50-gallon (~$1,200–$1,500) is one widely stocked option that meets both requirements, and A.O. Smith and Stiebel Eltron have qualifying lines as well. Verify any specific model on the ENERGY STAR Product Finder before purchase.
Can You Stack Your Heat Pump Rebate in 2026?
Yes, in most cases, but the stacking logic changed when the federal tax credit expired.
In 2025, the common stack was: federal 25C tax credit ($2,000) + state rebate + utility rebate. That first layer is gone for 2026 installs. What remains:
| Incentive | 2026 Status | Typical Amount | Stackable? |
|---|---|---|---|
| Federal tax credit (25C) | Expired Dec 31, 2025 | $0 for 2026 installs | N/A |
| HEAR federal rebate | Live in 23 states; income-limited | $4,000–$8,000 | Yes — stacks with state + utility |
| State program rebate | Varies by state | $450–$11,500 | Yes — stacks with HEAR + utility |
| Utility rebate | Available in most states | $500–$3,000 | Yes — stacks with HEAR + state |
A real 2026 example — Massachusetts, 75% AMI: $8,000 HEAR + $8,500 Mass Save + $500 Eversource utility rebate = $17,000 total. On a $20,000 install, that’s $3,000 out of pocket.
Same homeowner, 160% AMI: $0 HEAR (over the income limit) + $8,500 Mass Save (no income limit for the standard program) + $500 utility = $9,000 total. Out of pocket: $11,000. Income eligibility is worth checking carefully: the difference is $8,000.
Pennsylvania, 75% AMI: HEAR up to $8,000 + ~$450 utility rebate. The state program is thin, so most of the value depends on HEAR eligibility. Out of pocket on the same $20,000 install: approximately $11,550 best case.
One thing to know about stacking: utility subsidies may reduce the cost basis used to calculate your HEAR rebate. The HEAR amount is calculated on net project costs. If a utility rebate reduces the invoice before HEAR applies, the HEAR amount may adjust accordingly. Confirm the application order with your contractor before signing anything.
How to Apply for a Heat Pump Rebate
Most people get this sequence wrong, and it costs them the rebate. State program documentation consistently flags the reservation-before-install rule as the most common disqualifying mistake — contractors don’t always flag it proactively. The general order is the same across most state programs.
- Check your state’s HEAR status. Go to your state energy office website or the DOE’s IRA rebate tracker. Confirm HEAR is live in your state and that funds are still available. California’s experience shows programs can exhaust without warning.
- Verify your income eligibility. Use HUD’s income limits tool to find your county’s income thresholds. This determines your HEAR tier, or whether you qualify at all.
- Get income pre-verification before talking to contractors. In most states, you apply for income verification through the state portal and receive an eligibility code. Your contractor needs this to reserve the rebate. This step must happen before the install.
- Find a certified contractor. HEAR rebates are only available through contractors who have completed state-required training. Ask any contractor you’re quoting whether they are certified for your state’s program. In Massachusetts, that means the Mass Save Heat Pump Installer Network. A quote from a non-certified contractor cannot be used for HEAR filing.
- Have your contractor submit the reservation request. With your income eligibility code and a quote from a certified contractor, they submit the reservation through the state portal. You must have approval before installation begins.
- Install the system. After reservation approval, the install proceeds. The system must be ENERGY STAR certified, use a GWP ≤700 refrigerant, and meet your state program’s efficiency rating requirements. For cold-climate installs, see our cold climate heat pump guide for which specs matter most in northern states.
- Submit rebate paperwork. After installation, your contractor typically submits the application with the invoice. For HEAR, the rebate is usually applied directly to the invoice. For some state programs, a check is issued post-submission. In Massachusetts, paperwork for 2026 installations must be submitted by February 28, 2027. Mass Save budgets are allocated annually and can be exhausted before that deadline, so don’t delay.
- Allow 4–12 weeks for processing. HEAR point-of-sale rebates apply at time of payment. State program checks typically arrive in 4–8 weeks. Utility rebates vary widely: some are near-instant, others take 8–12 weeks.
What If My State’s HEAR Program Hasn’t Launched Yet?
This is where almost every guide abandons you. It’s also the situation many readers are in right now — and it’s the gap that frustrates people most when they’re trying to make a real decision.
Wait and prepare. If your HVAC system isn’t actively failing, waiting for your state’s HEAR launch may be worth $4,000–$8,000. Check your state energy office website for expected launch dates and sign up for email updates. Get income pre-qualification documents ready so you can move quickly when the program opens. These funds are first-come, first-served and fill fast.
Pursue utility rebates now. In most states, utility company rebate programs don’t depend on HEAR timing. Your electric utility likely has a heat pump rebate available today. It’s typically smaller ($500–$2,500) but it’s accessible. Search “[your utility company] heat pump rebate 2026.”
Check for state-funded programs independent of HEAR. Some states have incentive programs funded separately from IRA money. Massachusetts’s Mass Save is the clearest example. These don’t depend on federal HEAR rollout. Check your state energy office’s efficiency programs page separately from the IRA tracker.
Two free tools are worth bookmarking for ongoing research: DSIRE (Database of State Incentives for Renewables & Efficiency) tracks every state and utility incentive in real time, and the ENERGY STAR Rebate Finder lets you search by ZIP code for both state and utility rebates. Both are updated more frequently than any static guide.
Frequently Asked Questions
The federal tax credit (Section 25C) expired December 31, 2025 and doesn’t apply to 2026 installs. The HEAR program is a direct federal rebate applied at the point of sale, not a tax credit. It’s still active in 23 states. HEAR is income-limited (households above 150% AMI don’t qualify) and state-administered, so availability depends on your state’s rollout status.
For total rebate potential regardless of income, Rhode Island (up to $11,500 through Clean Heat RI), Massachusetts (up to $13,500 income-qualified through Mass Save), and New Jersey (up to $7,500) lead for state-funded programs. For income-qualified households with active HEAR programs, states combining HEAR with strong utility rebates (Colorado, Washington, Oregon) can reach $10,000+ in combined rebates.
Yes. HEAR rebates stack with state program rebates and utility rebates. There’s no federal rule preventing this combination. The one calculation to watch: if utility or state rebates reduce your invoice before HEAR is calculated, HEAR may be based on the reduced cost. Confirm the application order with your contractor.
HEEHRA (High-Efficiency Electric Home Rebate Act) is the legislation that created the program. HEAR (Home Electrification and Appliance Rebates) is the name the DOE and most states now use for the program itself. Searching for a “HEEHRA heat pump rebate” and a “HEAR rebate” will lead you to the same income-qualified, state-administered, direct rebate program. California and some other states still use “HEEHRA” in their official communications. When you see either term, it’s the same thing.
For HEAR, eligibility has three tiers based on your county’s Area Median Income (AMI) — see the full breakdown in the HEAR rebate table above. In brief: households at or below 80% AMI receive the highest amounts (up to $8,000, 100% of costs covered); 80–150% AMI receives up to $4,000 at 50% cost coverage; above 150% AMI, HEAR doesn’t apply. AMI is county-specific — HUD’s income limits tool has a lookup for every county. Many state programs have no income limit for their standard rebate amount.
It depends on the program. HEAR rebates (where available) are applied at the point of sale: you pay the discounted amount and don’t wait for a check. Mass Save rebates typically process within 4–8 weeks of contractor paperwork submission. Utility rebates vary widely: some are near-instant, others take 8–12 weeks. The reservation step before install typically gets a response within 1–5 business days in most state programs.
Yes. Under HEAR, heat pump water heater rebates are separate from HVAC rebates; you can receive both on the same project without one reducing the other (up to the $14,000 total household HEAR cap). Rhode Island’s Clean Heat RI offers $2,500 for a qualifying unit. The same ENERGY STAR and GWP refrigerant requirements apply, so verify your specific model before purchase.
Yes. Starting January 1, 2026, the EPA’s Technology Transition Rule requires rebate-eligible heat pumps to use refrigerants with a Global Warming Potential (GWP) of 700 or lower. R-410A, used in most heat pumps installed over the past 15 years, has a GWP above 2,000 and no longer qualifies. Systems must use next-generation refrigerants like R-32 or R-454B. Major manufacturers including Carrier, Trane, Mitsubishi, and Daikin have released compliant models, but confirm with your contractor that the specific quoted unit meets this requirement before any rebate paperwork is submitted. An R-410A system installed in 2026 won’t be eligible for HEAR or most state programs, regardless of income or efficiency rating.
Your Next Step
Before signing any contractor quote, run this sequence: look up your state in the table above to see what heat pump incentives by state are currently available, check your household AMI against HUD’s tool, verify your state’s portal status directly, and confirm any contractor you’re considering is certified for your state’s rebate program. In a state like Rhode Island or Massachusetts, doing this research before the install is worth thousands of dollars — the state programs alone can cover $8,500 to $11,500. In most other states, it’s still worth a few thousand dollars and about an hour of your time.
Where to go next: If you haven’t yet confirmed what an installation will actually cost, start with the heat pump installation cost breakdown — knowing that number makes the rebate math real. If you’re still weighing whether to switch from gas, the heat pump vs. gas furnace total cost comparison puts both systems side by side. And for the full picture of whether a heat pump is the right call for your home — efficiency ratings, equipment types, payback timelines — the complete Heat Pumps for Homeowners guide covers all of it.
The rebate amounts and program statuses in this guide reflect publicly available information as of March 2026. Rebate programs change frequently: funding runs out, new programs launch, and eligibility rules are updated. Always verify current availability directly with your state energy office or utility before making any installation decisions. This is not financial or contractor advice.