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⚠ Federal 25C Tax Credit Expired Dec 31, 2025

Heat Pump Rebates by State 2026–2027

Federal heat pump tax credits (25C) expired December 31, 2025. But state HEAR programs and utility rebates still offer up to $16,000+ depending on your state and income. Here's every program available in 2026.

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⚠ Federal Tax Credits Expired: Section 25C (up to $2,000 for heat pumps) and Section 25D (30% for geothermal) both expired December 31, 2025 under the One Big Beautiful Bill Act. Many websites still incorrectly list these as available. State HEAR programs and utility rebates are now the primary source of savings.

How Heat Pump Rebates Work in 2026

With federal credits gone, heat pump incentives now come from three sources: state HEAR programs (up to $8,000, income-qualified), utility rebates (varies widely by utility), and local programs (cities, counties, co-ops).

State HEAR Programs
Up to $8,000
Income-based (below 150% AMI). Active in ~12+ states in 2026.
Utility Rebates
$150–$4,000+
No income requirement. Available from most major utilities.
HOMES Programs
Up to $16,000
Whole-home efficiency rebates. Available in select states.
Income Tiers for HEAR Rebates
Below 80% AMI
100% of costs up to $8,000
Maximum rebate — full heat pump covered
80–150% AMI
50% of costs up to $4,000
Partial rebate — significant savings
Above 150% AMI
HEAR does not apply
Utility rebates still available

Heat Pump Rebates — State by State

Sorted by maximum available rebate · Updated July 2026 · Always verify current program status with your state energy office

VT
23 programs. $2,200 heat pump + income bonuses. 90% insulation rebate.
$9,150+
Efficiency Vermont + HEAR
Active
NY
EmPower+ up to $24,000 for below 80% AMI. Clean Heat up to $12,000 standard.
$24,000
NYS Clean Heat + EmPower+
Active
MA
Massachusetts
Up to $8,500 standard ($2,650/ton). Up to $16,000 income-qualified. 0% HEAT Loan.
$16,000
Mass Save + HEAR
Active
CO
$2,250/ton Xcel + $1,000 state credit + Power Ahead $1,500. No income req.
$12,000+
Xcel Energy + State Tax Credit
Active
NC
HEAR $8,000 + Duke $1,000. First state with full statewide HEAR coverage.
$9,000+
Energy Saver NC + Duke Energy
Active
MI
MiHER up to $8,000. DTE up to $1,200. Launched statewide April 2025.
$9,200+
MiHER + DTE / Consumers
Active
NM
HEAR $8,000 + PNM $860. Launched Sept 2024. DIY insulation eligible.
$8,860+
NM HEAR + PNM
Active
OR
Energy Trust $2,000 active now. HEAR $8,000 launching spring/summer 2026.
$10,000+
Energy Trust + HEAR (launching)
Active + Upcoming
RI
Rhode Island
10 programs. HEAR + National Grid utility programs. Check ri.gov for status.
$8,000+
HEAR + National Grid
Active
IN
Indiana
8 programs. Indiana Energy Saver Program + HEAR. AES Indiana + Duke Indiana.
$8,000+
HEAR + Indiana Energy Saver
Active
AZ
Arizona
8 programs. HEAR + APS and SRP utility rebates up to $600.
$8,600+
HEAR + APS / SRP
Active
DC
Washington DC
9 programs. Some listed as paused — verify current status at doee.dc.gov.
$8,000+
HEAR + Pepco
Active*
MN
Minnesota
Xcel Energy MN rebates + CenterPoint natural gas programs.
$5,000+
Xcel Energy MN + CenterPoint
Active
GA
Georgia
GEFA up to $16,000 for low-income. Georgia Power up to $1,200.
$16,000
GEFA HEAR + Georgia Power
Active
ME
Maine
Efficiency Maine + HEAR programs. Cold climate heat pump focus.
$8,000+
Efficiency Maine + HEAR
Active
CA
California
HEAR Region 1 fully reserved early 2026. TECH Clean CA still active for contractors.
Limited
TECH Clean CA (limited)
Limited
TX
Texas
No state HEAR launch. Oncor, AEP, and local utilities offer small rebates.
$1,000+
Utility programs only
Limited
FL
Florida
No state HEAR launch. FPL offers $300–$600 for qualifying heat pumps.
$600+
FPL + Duke FL
Limited

FAQ — Heat Pump Rebates 2026

What replaced the federal heat pump tax credit?
State HEAR programs (funded by the Inflation Reduction Act) are the primary replacement. About a dozen states have active HEAR programs offering up to $8,000 for income-qualified households. Many more states are launching in 2026. Utility rebates also continue independently of federal credits.
Do I need a specific income level to get the $8,000 heat pump rebate?
Yes. HEAR rebates are limited to households below 150% of Area Median Income (AMI). Below 80% AMI qualifies for up to 100% of costs (up to $8,000). 80–150% AMI qualifies for up to 50% of costs (up to $4,000). Above 150% AMI, HEAR does not apply but utility rebates are still available.
How do I know if my state has an active HEAR program?
Check your state energy office website or energy.gov/save. States with active HEAR as of July 2026 include Vermont, North Carolina, Michigan, New Mexico, Rhode Island, Indiana, Arizona, DC, New York, and others. More states are launching throughout 2026.
Can I stack utility rebates with state HEAR rebates?
Yes. Utility rebates and state HEAR rebates generally come from different funding sources and can be stacked, as long as the combined amount does not exceed the total project cost. This is where the biggest savings are — for example, a NC homeowner can stack Duke Energy $1,000 + Energy Saver NC $8,000.

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State-by-State Deep Dives

Vermont — 23 ProgramsUp to $9,150+North Carolina — 17 ProgramsUp to $9,000+Colorado — 16 ProgramsUp to $12,000+New Mexico — 12 ProgramsUp to $14,000Oregon — 11 ProgramsUp to $10,000+Michigan — 9 ProgramsUp to $9,200+New York — 8 ProgramsUp to $24,000Insulation Rebates by StateAll states
This guide is for educational purposes only. Program availability and amounts change frequently. Always verify with your state energy office and utility provider before starting a project. Data sourced from Rewiring America API and official program documentation, verified July 2026.