Assuming you are in the United States, the main heat pump incentives available in 2026 are state-administered Home Energy Rebates, utility rebates, and state or local electrification programs. The federal residential tax credit for heat pumps ended for equipment placed in service after December 31, 2025.
The largest potential incentive is the High-Efficiency Electric Home Rebate, which can provide up to $8,000 for an eligible electric heat pump used for space heating and cooling. Availability depends on whether your state, territory, or Tribal program is open and whether funding remains.
Heat Pump Rebates at a Glance
| Incentive | Potential amount | Main eligibility | How it works |
|---|---|---|---|
| High-Efficiency Electric Home Rebate | Up to $8,000 for a space-heating and cooling heat pump | Generally households below 150% of area median income | State-administered, usually as a point-of-sale rebate |
| Home Efficiency Rebates | Up to $8,000 for qualifying whole-home improvements | Available across income levels, with larger amounts for lower-income households | Requires measured or modeled energy savings |
| Utility rebate | Varies by utility and equipment | Utility territory, equipment, installer, and efficiency requirements | Apply through your electric or gas utility |
| State and local rebates | Varies widely | Depends on location and program rules | Apply through a state, city, county, or local agency |
| Federal residential tax credit | Not available for new 2026 installations | Credit ended after December 31, 2025 | No longer available for equipment placed in service after that date |
1. High-Efficiency Electric Home Rebates Can Cover Up to $8,000
The High-Efficiency Electric Home Rebate Program, often called HEEHR, is the main federal-funded rebate route for qualifying households.
A state HEEHR program may provide:
- Up to $8,000 for an ENERGY STAR-certified electric heat pump for space heating and cooling
- Up to $1,750 for an electric heat pump water heater
- Up to $4,000 for an electrical load service center or panel upgrade
- Up to $2,500 for electrical wiring
- Up to $1,600 for insulation, air sealing, and ventilation
- Up to $500 toward installation, depending on the state program
The total HEEHR allowance can reach $14,000 per household. Each state program decides which measures it offers and how applications are handled.
Households below 80% of area median income may qualify for rebates covering up to 100% of eligible project costs, subject to program limits. Households between 80% and 150% of area median income may qualify for rebates covering up to 50% of eligible costs.
HEEHR does not use one nationwide application. Your state, territory, or Tribe manages its own program, and the Department of Energy lists the rebates as open only in selected locations.
2. Home Efficiency Rebates Can Provide Up to $8,000 for Whole-Home Upgrades
The Home Efficiency Rebates Program, known as HOMES, supports projects that reduce a home's total energy use. A heat pump may qualify when it is part of a wider upgrade package that includes measures such as:
- Insulation
- Air sealing
- Duct sealing
- Heating and cooling equipment
- Efficient water heating
- Other approved energy improvements
For a single-family home, the potential rebate is generally:
- Up to $4,000 for a project achieving 20% to 34% modeled energy savings
- Up to $8,000 for a project achieving at least 35% modeled energy savings
- Larger percentage-based rebates for households below 80% of area median income
The calculation varies by state. Some programs use modeled energy savings, while others may measure performance after installation. A home energy assessment or qualified contractor is commonly required before work begins.
HOMES is usually a better fit when you are upgrading several parts of the house rather than replacing a heating and cooling system on its own.
3. Utility Companies Often Offer Separate Heat Pump Rebates
Electric and gas utilities may offer rebates for eligible air-source, ductless mini-split, cold-climate, or geothermal heat pumps.
Utility incentives commonly depend on:
- The utility serving your address
- ENERGY STAR or another efficiency certification
- The system's efficiency rating
- Whether the heat pump replaces oil, propane, natural gas, or electric resistance heating
- Whether you use a participating contractor
- Required permits, inspections, or pre-approval
- Whether the rebate applies to new construction or replacement projects
Rebate amounts vary by location. The ENERGY STAR Rebate Finder lets homeowners search by ZIP code for utility, state, and local incentives, including heat pump rebates.
4. State and Local Electrification Programs May Add More Assistance
Some states, cities, and counties offer incentives outside the federal Home Energy Rebates program. These may include:
- Heat pump installation rebates
- Low-income electrification assistance
- Weatherization grants
- Electrical panel or wiring rebates
- Financing with below-market interest rates
- Rebates for replacing fossil-fuel heating systems
- Incentives for heat pump water heaters
The rules may depend on your utility territory, household income, equipment, or existing heating system. Check your state energy office, local utility, and city or county energy department before signing an installation contract.
Is the Federal Heat Pump Tax Credit Still Available?
No. The federal Energy Efficient Home Improvement Credit is not available for heat pump equipment placed in service after December 31, 2025.
For qualifying installations completed during 2025, the credit was generally 30% of eligible costs, with a separate annual maximum of $2,000 for heat pumps, heat pump water heaters, and qualifying biomass equipment. The IRS states that energy-efficient home improvement credits cannot be claimed for property placed in service after December 31, 2025.
The federal tax credit is separate from state, utility, and Home Energy Rebates. A rebate program that remains open in 2026 may still lower your installation cost even though the federal tax credit has ended.
Can You Combine Heat Pump Rebates?
Sometimes, but do not assume every incentive can be combined.
State programs may coordinate with utility rebates, but restrictions can apply when two programs pay for the same equipment or upgrade. Some programs also require you to apply before installation, use an approved contractor, or receive written approval before purchasing the heat pump.
Before work begins:
- Search your ZIP code in the ENERGY STAR Rebate Finder.
- Contact your electric and gas utilities.
- Check your state energy office's Home Energy Rebates page.
- Confirm that the exact heat pump model qualifies.
- Ask whether pre-approval, a qualified contractor, or a home energy assessment is required.
- Get written confirmation about whether the rebates can be combined.
Your actual rebate amount depends on your ZIP code, household income, current heating fuel, utility, and the type of heat pump you plan to install.