Heat Pump State Rebates 2026: The Complete List

The layers of heat pump money in 2026

Heat pump incentives are confusing because they come from different places, each with its own rules. Until the end of 2025 there were four layers; for a 2026 install there are three:

1. Federal tax credits (ended) — the 25C credit (air-source, 30% up to $2,000) and the 25D credit (geothermal, 30% uncapped) do not apply to equipment installed after December 31, 2025.
2. Federal HEAR rebates — up to $8,000 for income-qualified households, paid as an upfront discount, administered by each state. Still available in 2026.
3. State rebates — programs run by state energy offices, available to all income levels in many states.
4. Utility rebates — offered by your electric or gas utility to promote efficient electrification.

HEAR is national but rolled out state by state; the last two vary enormously by location. The good news is they generally stack, so many households can still combine two or three of them.

The federal credits (ended after 2025)

Until the end of 2025, two federal tax credits applied in every state. The One Big Beautiful Bill Act (signed July 4, 2025) ended both for equipment installed after December 31, 2025:

• Air-source heat pumps (25C): was 30% of cost, capped at $2,000 per year, for models meeting the CEE highest-efficiency tier. No credit for property placed in service after Dec 31, 2025.
• Geothermal heat pumps (25D): was 30% of cost with no cap, with carryforward of unused credit. No credit for installations completed after Dec 31, 2025.

If your heat pump was installed by December 31, 2025, you can still claim it on your 2025 return using IRS Form 5695, or amend with Form 1040-X (generally within 3 years) if you missed it. For a 2026 install, the federal credit is $0 and your net cost is simply your price minus rebates. More detail is in the heat pump tax credit guide.

HEAR: up to $8,000 for income-qualified homes

The Inflation Reduction Act funds the Home Electrification and Appliance Rebates (HEAR) program, administered by each state. Unlike the tax credits, HEAR was not repealed and is still available in 2026. For a qualifying heat pump, eligible households receive an upfront point-of-sale rebate:

Households below 80% of area median income (AMI) can receive 100% of project cost up to the cap; those at 80–150% AMI receive 50%. Above 150% AMI, you rely on state and utility rebates instead. Availability varies by state, so check your state energy office or energy.gov/save/rebates for current status.

How HEAR, state and utility rebates stack

In 2026 the stack is HEAR, state rebates and utility rebates; the federal tax credit is no longer part of it. The layers generally combine, but with one important rule: you cannot claim the same dollar twice. In practice:

• You cannot use both a HEAR rebate and a separate state rebate on the same equipment in most program designs.
• Utility rebates usually stack on top of everything and are treated separately.
• Your net cost is simply the installed price minus the rebates you receive. There is no tax-time credit to subtract afterward.

A common income-qualified stack looks like: HEAR covers a large share upfront and a utility rebate knocks off a few hundred to a couple thousand more. For households below 80% AMI the result can still be a very low or near-zero net cost.

Northeast: the most generous region

The Northeast leads the country on heat pump incentives, driven by aggressive state climate goals:

• Massachusetts (Mass Save) — whole-home heat pump rebates historically up to $10,000, among the richest in the US.
• New York (NYS Clean Heat, via utilities) — per-ton rebates that can total several thousand dollars.
• Maine (Efficiency Maine) — a national leader in adoption, with per-unit rebates and low-income adders.
• Vermont, Connecticut, Rhode Island, New Hampshire — utility and efficiency-program rebates, often $500–$2,000+ per system.

If you live in the Northeast, your state or efficiency program is likely the largest single rebate available to you — check it first. With the federal credit gone, it is often the biggest piece of your incentive stack.

Mid-Atlantic

The Mid-Atlantic offers solid, if more modest, programs:

• New Jersey — the state's Clean Energy Program offers heat pump rebates, with adders for whole-home electrification.
• Maryland — EmPOWER Maryland utility rebates plus state programs.
• Pennsylvania — primarily utility-administered rebates, varying by service territory.
• Virginia — utility rebates plus the rolling-out federal HEAR program.

Several of these states also appear in our solar-by-state guides, and many homeowners pair a heat pump with solar to cover the added electric load — see our heat pump + solar savings math.

Midwest

Midwest incentives are largely utility-driven but can be meaningful, especially from the larger investor-owned utilities:

• Illinois — ComEd and Ameren efficiency rebates for qualifying heat pumps.
• Michigan — DTE and Consumers Energy rebate programs.
• Minnesota — a strong cold-climate heat pump rebate ecosystem via utilities and the state.
• Wisconsin (Focus on Energy) and Ohio — statewide and utility rebates.

Because much of the Midwest is a cold climate, prioritize a NEEP-listed cold-climate model and stack the utility rebate with any state rebate and, if eligible, HEAR.

West Coast and Mountain West

The West combines state ambition with active utility programs:

• California — TECH Clean California and the statewide push toward heat pumps, plus generous utility rebates; California targets millions of heat pumps installed this decade.
• Oregon (Energy Trust of Oregon) and Washington — strong utility and state rebates.
• Colorado — a state heat pump tax credit plus utility rebates, one of the better Mountain West stacks.
• Nevada — utility rebate programs via NV Energy.

The West's mild-to-moderate climates also mean a heat pump's running-cost advantage over gas is often smaller, so the upfront rebate stack does a lot of the work in making the math attractive.

Southwest and South

In warmer regions, the cooling benefit dominates and incentives are more utility-led:

• Arizona, New Mexico, Texas — utility rebates (e.g., APS, SRP, El Paso Electric, Oncor-area programs) for high-efficiency heat pumps that double as efficient AC.
• Georgia, North Carolina, South Carolina — Duke Energy and other utility rebates; several of these states also have strong solar economics (see our North Carolina guide).
• Florida — utility rebates plus the cooling-season efficiency win; see our Florida solar guide for pairing with solar.

In the South, a heat pump is often the default replacement for an aging AC plus electric or gas heat, and a utility rebate (plus HEAR for income-qualified households) is now the typical incentive package.

Utility rebates: don't overlook them

Your electric (and sometimes gas) utility almost certainly runs an efficiency-rebate program, and these are frequently overlooked because they sit outside the headline federal and state news. Utility rebates for heat pumps commonly range from a few hundred dollars to over $2,000 per system, sometimes structured per ton of capacity or tied to a minimum efficiency tier.

Because utilities want to manage peak electric demand, some offer extra incentives for smart thermostats or demand-response enrollment alongside the heat pump. Always check your specific utility's website or call them — this is often the easiest rebate to claim, applied at point of sale by a participating contractor.

How to find your exact rebates

Because programs change and vary by ZIP code, use authoritative, up-to-date sources rather than assuming:

1. DSIRE (dsireusa.org) — the comprehensive, NC State-maintained database of every state and utility incentive; search by your ZIP.
2. Your state energy office — for HEAR status and state-specific programs (energy.gov/save/rebates lists each state's status).
3. Your utility's website — for current rebate amounts and qualifying equipment lists.
4. ENERGY STAR Rebate Finder — a quick first-pass lookup by ZIP.

A reputable installer will also know the local programs cold and often handles the paperwork — but verify independently, because the installer's incentive to maximize your rebates isn't always perfectly aligned with yours.

Timing your project around rebate budgets

Timing used to revolve around the 25C tax credit's $2,000 annual cap, which let people split projects across two tax years. That credit ended for property placed in service after December 31, 2025, so splitting a 2026 project across years no longer earns any federal credit.

What matters now is rebate budgets: many state and utility programs are funded in annual or quarterly tranches and can run out, so applying early in a program cycle improves your odds. And because HEAR is still rolling out unevenly, income-qualified households may benefit from waiting until their state's program is live rather than locking in now and missing the upfront rebate.

How to claim everything, step by step

1. Confirm the model qualifies — check the HEAR, state and utility rebate equipment lists for your program.
2. Apply for upfront rebates first — HEAR and most state/utility rebates are applied at point of sale or via a participating contractor, lowering your invoice.
3. Keep documentation — itemized invoice, manufacturer certification statement, model numbers, and the placed-in-service date.
4. Check for a 2025 install — only a heat pump installed by December 31, 2025 can still get the federal credit, claimed on your 2025 return (Form 5695) or by amending with Form 1040-X. A 2026 install gets no federal credit.

Estimate your net cost after rebates with the Heat Pump Cost Calculator, then sanity-check the overall payoff with the Is It Worth It? tool.

A worked example

Consider an income-qualified household (below 80% AMI) in a Northeast state installing a $16,000 ducted cold-climate heat pump. HEAR covers up to $8,000 of the equipment and install; a state efficiency-program rebate adds $2,000 (where program rules allow it alongside HEAR); a utility rebate contributes $500. That leaves about $5,500 paid out of pocket, and with no federal credit for a 2026 install, that $5,500 is the net cost for a system listed at $16,000.

A higher-income household in the same state can't use HEAR but might still combine a $2,000 state rebate and a $500 utility rebate, trimming the $16,000 price to about $13,500. Before 2026 the federal credit would have taken another $2,000 off; it no longer does. Either way, stacking the remaining layers is what turns a heat pump from a stretch into a sensible buy.