Heat pump rebates in 2026 come from three places: federal Home Energy Rebates run by states, utility programs and a few state programs. The 30% federal tax credit doesn’t apply to heat pumps installed after December 31, 2025. On top of that, since May 29, 2026 the federal HEEHR rebate no longer pays to replace a gas, oil or propane system.
Information checked on November 4, 2026. Because rebate programs change often, confirm the details with your state energy office or utility before you sign a contract.
Which heat pump rebates you can still get in 2026
| Incentive | Status in November 2026 | Most you can get for a heat pump |
|---|---|---|
| Federal tax credit (25C) | Ended for heat pumps installed after December 31, 2025 | $0 for 2026 installations |
| HEEHR rebate (formerly HEAR) | Open in a few states; for new reservations, only when replacing electric equipment | Up to $8,000, and up to $14,000 per household for all upgrades |
| HOMES whole-home rebate | Open in a few states | $2,000 to $8,000 under federal limits, based on savings and income |
| Utility rebates | Available in many areas, with their own rules | Varies; for example, Mass Save pays up to $8,500 in 2026 |
| Utility or state loans | Varies by state | Financing rather than a rebate; Mass Save offers 0% loans up to $25,000 |
The federal heat pump tax credit ended after 2025
The Energy Efficient Home Improvement Credit, known as 25C, covered 30% of a heat pump’s cost, up to $2,000 a year, according to ENERGY STAR. However, the One Big Beautiful Bill Act ended it early. The IRS now says the credit “will not be allowed for any property placed in service after December 31, 2025.”
Geothermal heat pumps used a different credit, 25D, which ended for expenditures made after 2025. According to the IRS, an expenditure counts as made when the installer completes the original installation. So paying a deposit in 2025 doesn’t help if the installer finished the system in 2026.
In other words, a heat pump placed in service in 2025 falls before the cutoff, while one installed in 2026 doesn’t qualify. For the details, see our guide to the 25C tax credit for heat pumps.
Federal heat pump rebates: HEEHR and HOMES
The Inflation Reduction Act set aside $8.8 billion for two Home Energy Rebates programs, ACHR News reports. In turn, the money goes to states, which design and run their own programs. As a result, what you can get depends on where you live.
- HEEHR (High-Efficiency Electric Home Rebates): rebates for specific electric upgrades, such as a heat pump, for households earning less than 150% of the area median income (AMI). Until 2026, its name was HEAR.
- HOMES (Home Owner Managing Energy Savings): rebates for whole-home projects, paid according to the energy savings they deliver. Before 2026, its name was Home Efficiency Rebates.
HEEHR rebate amounts
| Upgrade | Maximum rebate |
|---|---|
| Heat pump for heating and cooling | $8,000 |
| Heat pump water heater | $1,750 |
| Electrical panel upgrade | $4,000 |
| Electrical wiring | $2,500 |
| Insulation, air sealing and ventilation | $1,600 |
| Electric stove, cooktop, range or oven | $840 |
| Total per household | $14,000 |
What changed for HEEHR on May 29, 2026
To begin with, DOE Program Notice 26-2 removed rebates for “fuel-switching (i.e. replacement of non-electric appliances).” As a result, HEEHR now pays only to upgrade “from existing electric equipment to more efficient electric equipment,” plus new construction.
In practice, a HEEHR rebate can still help you replace electric baseboards, an electric furnace or an old heat pump. By contrast, swapping a gas, propane or oil furnace for a heat pump no longer qualifies for new reservations.
Secondly, homes must use rebates for insulation and air sealing before a heating or cooling upgrade, unless they already meet a state level that DOE approved. In addition, the notice lets homes keep an existing fossil-fuel system when they add a heat pump. However, states read this differently. Georgia, for example, treats a heat pump added to a gas-heated home as fuel switching, according to The Rebate Map.
Meanwhile, states can still pay reservations they approved under the old rules. Launched states had three months to comply, and DOE and NASEO let them take old-rule reservations through August 31, 2026, Appliance News reported. North Carolina, for instance, stopped funding fuel switching on September 1, 2026.
HOMES rebate amounts
| Modeled energy savings | Most households | Below 80% of AMI |
|---|---|---|
| 20% to under 35% | Lesser of $2,000 or 50% of cost | Lesser of $4,000 or 80% of cost |
| 35% or more | Lesser of $4,000 or 50% of cost | Lesser of $8,000 or 80% of cost |
Unlike HEEHR, HOMES pays for the savings a project delivers, not for a specific appliance. Program Notice 26-1, which updated HOMES, doesn’t mention fuel switching. So a heat pump can still be part of a HOMES project where your state allows it.
HOMES also requires an energy assessment, according to AuditYourHome. Since the rebate depends on modeled savings, combining a heat pump with insulation and air sealing can help you reach the 20% or 35% threshold.
Which states are paying heat pump rebates now
As of October 12, 2026, AuditYourHome found 10 states plus DC taking applications for at least one federal program. Still, availability changes quickly, and many state pages still didn’t reflect the May 2026 rules.
| Status on October 12, 2026 | States |
|---|---|
| Open for at least one program | District of Columbia, Georgia (HOMES only; HEEHR paused), Indiana, New Mexico, New York (HEEHR through EmPower+), North Carolina, Rhode Island and Wisconsin |
| Open with limits | Arizona, Maine and Michigan |
| Paused or waitlist | Utah (paused) and West Virginia (pilot with a waitlist) |
| Closed or fully reserved | California (waitlist) and Colorado (funds used up) |
| Not launched | Most other states, including Texas, Florida, Pennsylvania, Ohio, Minnesota, Oregon and Washington; South Dakota isn’t participating |
For the state-by-state details and how to apply, see our HEAR rebate program guide.
Utility heat pump rebates are often easier to get
Meanwhile, many utilities run their own heat pump rebates, which don’t depend on federal funding. To find them, start with your utility’s website and the ENERGY STAR Rebate Finder, which lists rebates and special offers on certified products by ZIP code.
For example, Mass Save in Massachusetts shows how these programs work. In 2026, it pays $2,650 per ton, up to $8,500, for a whole-home heat pump and $1,125 per ton, up to $8,500, for a partial-home system. However, those amounts drop to $2,350 and $1,000 per ton, capped at $7,500, for systems installed on or after January 1, 2027.
Utility rebates also come with conditions, so read them before you buy. Mass Save, for instance, requires ENERGY STAR cold-climate equipment from its qualified list and an installer from its network. Likewise, its whole-home rebate requires a home with sufficient weatherization.
How to stack heat pump rebates without losing them
- Apply before you install. Many programs aren’t retroactive; Minnesota, Vermont and Washington say so on their pages, according to AuditYourHome.
- Use an enrolled contractor. Programs such as Mass Save and Oregon’s pay only for work by enrolled contractors, so ask before you sign.
- Don’t double up federal money. By law, you can’t combine a HEEHR rebate with another federal grant or rebate for the same project.
- Check the stacking rules. For example, you can’t combine Mass Save rebates with other Mass Save incentives for the same equipment.
- Watch for scams. North Dakota warns that current rebate offers are likely scams, and Kentucky says anyone offering rebates before launch is misinformed.
- Keep your paperwork. Above all, save the itemized invoice, model numbers and serial numbers. Mass Save, for instance, now requires serial numbers and a nameplate photo.
How to apply for heat pump rebates, step by step
- First of all, check your state energy office’s Home Energy Rebates page to see whether HEEHR or HOMES is open where you live.
- Then search your utility’s website and the ENERGY STAR Rebate Finder for local offers.
- Next, book an energy assessment if a program requires one, and seal and insulate first when HEEHR requires it.
- After that, get several quotes from contractors enrolled in the programs you plan to use.
- Reserve the rebate before work starts, and get the confirmation in writing.
- Finally, submit the paperwork before the deadline. Mass Save, for example, gives 2026 installations until February 28, 2027.
If rebates fall short, our guide to HVAC financing covers 0% offers and loans. You can also compare prices in our heat pump cost guide and running costs in heat pump vs furnace.
Related guides: Before you collect quotes, also read our guide on how to compare HVAC quotes.
More in this section:
- Utility rebates for heat pumps
- Extended HVAC warranties
- Home warranties vs HVAC service plans
- Heat pump rebates in New York
Heat pump rebates FAQ
Is there still a federal tax credit for heat pumps in 2026?
No. The IRS says the 25C credit doesn’t apply to property placed in service after December 31, 2025. As a result, the remaining federal help comes from the HEEHR and HOMES rebates, where your state offers them.
Can I get a rebate to replace my gas furnace with a heat pump?
Not through HEEHR for new reservations, since that rule changed on May 29, 2026. However, HOMES, utility programs and some state programs may still help, so check each program’s rules on the fuel you heat with now.
Do I need a low income to get heat pump rebates?
For HEEHR, yes: your household must earn less than 150% of the area median income. HOMES is open to all incomes under federal rules, although North Carolina and Michigan limit it to low- and moderate-income households. Many utility rebates, such as Mass Save’s whole-home rebate, have no income limit.
What is the difference between HEAR and HEEHR?
Basically, they’re the same program. In 2026, DOE renamed Home Electrification and Appliance Rebates (HEAR) to High-Efficiency Electric Home Rebates (HEEHR) to match the name in the law. At the same time, it tightened the rules.
How much can I get for a heat pump?
Under HEEHR, up to $8,000 for a heat pump and $14,000 per household in total. Under HOMES, however, federal limits range from $2,000 to $8,000 per home, depending on savings and income. Utility rebates come on top where allowed; Mass Save, for example, pays up to $8,500 in 2026.
Sources and review
Sources: IRS, FAQs on the end of energy credits under Public Law 119-21 (FS-2025-05, August 21, 2025); ENERGY STAR, air-source heat pump tax credit; DOE Program Notice 26-2 (HEEHR) (effective May 29, 2026); DOE Program Notice 26-1 (HOMES) (effective May 29, 2026); DOE, Home Energy Rebates Program; ENERGY STAR, HEAR program amounts; ENERGY STAR, HOMES program amounts; ACHR News, DOE updates guidance for $8.8B Home Energy Rebate Program (July 9, 2026); Appliance News, DOE rebate rules change Sept. 1 (August 31, 2026); AuditYourHome, Home Energy Rebates 2026 (checked October 12, 2026); The Rebate Map, Home Energy Rebates by state (September 9, 2026); The Rebate Map, fuel switching ended (September 9, 2026); Mass Save, air-source heat pump rebates (2026); ENERGY STAR Rebate Finder. All checked on November 4, 2026.
Written by: HVAC Switch. Last updated: November 4, 2026. Read our editorial policy to learn how we research prices, or contact us if you spot an error.