Checked 2026-10-26
Heat pump rebates and tax credits
The short answer
The federal 25C heat pump credit (30% of cost, up to $2,000 a year) covered property placed in service through December 31, 2025 per the IRS. We found no extension, so we do not assume any federal credit in our numbers. State, utility and local rebates vary by address; check them before you buy.
What we assume on this site
Nothing. Every cost on this site is before incentives, because rebates are address-specific and change often. Subtract your own rebates in the payback calculator.
Where to look
- ENERGY STAR Rebate Finder by ZIP.
- DSIRE, the database of state incentives (the site blocks automated checks; open it in a browser).
- Your electric and gas utility's efficiency program pages and your state energy office.
Why no dollar table? We could not obtain a machine-readable, bulk source for state and utility rebates (DSIRE's API refused access and the Department of Energy rebate pages we tried returned 404), and we do not publish numbers we cannot source.
Questions people ask
Is the federal heat pump tax credit still available?
The IRS Energy Efficient Home Improvement Credit (Form 5695, up to $2,000 a year for heat pumps) applies to property placed in service through December 31, 2025, according to the IRS page last updated April 28, 2026. We found no extension on the IRS or ENERGY STAR pages. Ask a tax professional before relying on any federal credit for a 2026 installation.
Where do I find state and utility rebates?
Start with your electric or gas utility and your state energy office. ENERGY STAR's rebate finder searches by ZIP, and DSIRE lists state programs. Rules change often, so confirm eligibility before you buy.
Do rebates change the payback?
Yes. Enter the rebate you will actually receive in the DIY vs installed payback calculator.