Federal context
Federal heat pump tax credit and rebates in 2026
Last verified:There is no federal heat pump tax credit for 2026 installations. The 25C credit, worth up to $2,000 a year for heat pumps, does not apply to systems placed in service after December 31, 2025, and the 25D credit ended on the same date. The federal HEAR (formerly HEEHRA) and HOMES rebates still fund heat pump projects, but only an active state, territory, or Tribal program can approve one. Check that program before installation.
25C Energy Efficient Home Improvement Credit
EndedAir-source heat pumps placed in service after December 31, 2025 do not qualify for the former federal 25C credit.
- 2026 status
- Unavailable
- Final eligible date
- December 31, 2025
- Former heat-pump limit
- $2,000 per year
A qualifying 2025 installation is claimed for the 2025 tax year under the rules that applied when the property was placed in service. Buying equipment in 2025 without completing the installation does not create a 2026 credit.
Ignore contractor proposals or utility pages that still add a $2,000 federal heat-pump credit to a system placed in service in 2026.
25D Residential Clean Energy Credit
EndedGeothermal, solar, battery, and other eligible residential clean-energy property placed in service after December 31, 2025 no longer qualifies for 25D.
- 2026 status
- Unavailable
- Final eligible date
- December 31, 2025
- Geothermal after cutoff
- No 25D credit
The earlier phase-down schedule was accelerated by federal legislation in 2025. The IRS now states that the credit is not available for property placed in service after December 31, 2025.
A 2026 geothermal proposal should not show a 30% federal residential credit. State, utility, or financing programs may still apply separately.
Home Electrification and Appliance Rebates (HEAR)
State-dependentFederal money is delivered through states and Tribes. A statutory maximum is not an open rebate in every location.
- Heat-pump ceiling
- Up to $8,000 where an active program approves it
- Income design
- Generally limited to households at or below 150% AMI
- How to apply
- State, territory, or Tribal program
Households below 80% of area median income can be eligible for up to 100% of qualified project cost within program caps. Households from 80% to 150% AMI can be eligible for up to 50%. State implementation, available measures, fuel-conversion rules, contractors, reservations, and remaining funds still control the result.
Do not purchase first and assume reimbursement. Open the responsible state or Tribal program, complete eligibility, and obtain any required reservation before work begins.
Home Efficiency Rebates (HOMES)
State-dependentHOMES supports whole-home projects that produce modeled or measured energy savings. Availability and calculation are set through each administering program.
- Project basis
- Whole-home energy savings
- Income
- Program design includes enhanced low-income support
- How to apply
- State, territory, or Tribal program
A heat pump can be part of a HOMES project, but buying a heat pump does not by itself earn a HOMES rebate. The approved scope, energy model or measurement path, contractor, and program rules matter.
Ask the administrator whether HOMES can combine with HEAR, a utility incentive, or another grant and which incentive must be applied first.
Federal heat pump credit questions
Is there still a federal heat pump tax credit in 2026?
No. The federal Section 25C Energy Efficient Home Improvement Credit does not apply to heat pumps placed in service after December 31, 2025. The former limit was $2,000 per year. The 25D Residential Clean Energy Credit, which covered geothermal, ended on the same date.
What federal heat pump rebates are left in 2026?
Two federally funded rebate programs remain: HEAR (formerly HEEHRA) and HOMES, a whole-home energy-savings rebate. Both reach homeowners only through an active state, territory, or Tribal program. State programs, utility rebates, and state tax credits are separate and still apply where they are open.
What happened to the HEEHRA heat pump rebate?
HEEHRA is now called the Home Electrification and Appliance Rebates (HEAR) program. The federal money is delivered through states, territories, and Tribes. A heat pump rebate of up to $8,000 applies only where an active program approves the project, generally for households at or below 150% of area median income.
Can I claim the 25C credit for a heat pump installed in 2026?
No. A qualifying 2025 installation is claimed for the 2025 tax year. Buying equipment in 2025 without completing the installation does not create a 2026 credit, so a 2026 quote should not show a $2,000 federal heat pump credit.
How do I claim a heat pump rebate?
Find the current program for the installation address, confirm household and equipment eligibility, and get any required reservation or approval before signing an installation contract. Do not buy first and assume reimbursement.
Heat pump rebates by state
- California heat pump rebates
- Colorado heat pump rebates
- Maine heat pump rebates
- Massachusetts heat pump rebates
- New York heat pump rebates
- Oregon heat pump rebates
- Texas heat pump rebates
- Washington heat pump rebates
Size the mini split before collecting quotes, so every bid can be checked against the same capacity.
Find the current program for the installation address. Treat every advertised maximum as conditional until the administrator approves the household, equipment, contractor, project date, and available funding.
Check state programs