What ended and what changed
| Incentive | Status |
|---|---|
| Federal tax credit (25C), up to $2,000 a year for heat pumps | Ended for property placed in service after December 31, 2025. |
| Federal HEEHR rebates, run by states | Rules changed May 29, 2026. Programs launch state by state. Check your state energy office. |
| State and utility rebates | Vary by place. Many exist. Check the rebate finder and your utility. |
Source: IRS FS-2025-05 and DOE Program Notice 26-2, read October 10, 2026.
The federal rebate program after the 2026 changes
The Department of Energy renamed the electrification rebates from Home Electrification and Appliance Rebates to High-Efficiency Electric Home Rebates, or HEEHR. Its Program Notice 26-2, effective May 29, 2026, tells states what changed for heat pumps and other equipment:
- Rebates for replacing non-electric appliances, called fuel switching, are removed. Rebates now cover upgrading from existing electric equipment to more efficient electric equipment.
- New-construction electric heating, cooling and appliances remain eligible.
- Homes generally need insulation and air sealing rebates before heating and cooling upgrades, unless they are already sealed and insulated to a state-specified level.
- A home may keep an existing fossil-fuel system when a heat pump is installed, even if the heat pump does not become the main source of heat.
DOE's consumer page lists a rebate of up to $8,000 for an ENERGY STAR heat pump for heating and cooling. That page has not been updated for the 2026 changes, so treat the figure as a ceiling, and ask your state what it pays.
Source: DOE Program Notice 26-2 and the DOE home upgrades page, read October 10, 2026. Launched state programs have a transition period to follow the new rules, so what you see in your state may differ for a while.
How to check your state before you buy
- Search for your state energy office and its home energy rebates page. Ask whether the program has launched and which products it covers.
- Ask whether you must reserve the rebate before the work starts. Rebates are generally not paid for work finished before a program launches.
- Ask whether insulation and air sealing come first for your home.
- Ask about income tiers. Federal law ties the rebate level to household income relative to the area median, with more help for lower-income households, and your state sets the details.
- Use the ENERGY STAR rebate finder to see utility offers by ZIP code.
Utility and state offers
Many utilities and states offer their own heat pump rebates, and some offer a lower electric rate for homes that heat with electricity. Offers change often and funds can run out. Ask your electric company, and ask whether the offer can be combined with the federal rebate. Our weatherization guide covers free upgrades for households that qualify.
What a heat pump costs to run
A rebate lowers what you pay up front. The running cost depends on your electricity price, your gas or oil price and the heat pump's efficiency in your climate. Try the heat pump versus furnace calculator, and see what a heat pump costs to run.
Sources and further reading
Frequently asked questions
Is there a federal tax credit for a heat pump in 2026?
No. The IRS says the energy efficient home improvement credit does not apply to property placed in service after December 31, 2025.
Can I still get a federal rebate for a heat pump?
Possibly, through your state’s HEEHR program, if it has launched. The 2026 rules removed fuel switching, so a heat pump generally replaces existing electric equipment or goes into new construction. Ask your state energy office.
How much is the federal heat pump rebate?
DOE’s consumer page lists up to $8,000 for a heat pump for heating and cooling. Your state sets the actual amount, and the page predates the 2026 changes.
Should I wait for a rebate before installing?
Ask first. Rebates are generally not paid for work done before a program launches or before you reserve the rebate, and an unlaunched program cannot pay anything yet.