Does the Heat Pump Tax Credit Still Exist in 2026?

Last updated June 27, 2026

Short answer: The federal heat pump tax credit no longer exists — Section 25C expired December 31, 2025. But you may still get up to $8,000 through state-administered HEEHRA rebates, which survive in about 13 states plus D.C. for income-qualified households. Whether you can use one depends on your state, your income, and whether the program still has funding.

What expired, and when

The One Big Beautiful Bill Act (signed July 4, 2025) ended the federal Section 25C Energy Efficient Home Improvement Credit after December 31, 2025. That credit had covered 30% of a qualifying heat pump's cost, capped at $2,000. A heat pump installed in 2026 receives no federal tax credit. The federal residential solar/battery credit (25D) and the federal EV purchase credit ended on the same timeline.

What's still available in 2026

State HEEHRA rebates (up to $8,000)

The Inflation Reduction Act's Home Electrification and Appliance Rebates (HEEHRA) were not repealed. They're funded federally but run by each state, so availability varies. For households below 80% of area median income, the heat pump rebate can reach $8,000; households at 80–150% can get up to $4,000. There are additional caps for heat pump water heaters, induction stoves, and electrical panel upgrades.

As of early 2026, the program is live in roughly 13 states plus D.C. — including California, New York, Colorado, Michigan, New Mexico, North Carolina, Washington, Maine, Arizona, Georgia, Indiana, Rhode Island, and Wisconsin. Important caveats:

Funding can run out. California's single-family rebates were fully reserved by February 2026 — no new applications accepted.
It's income-based. Higher-income households may not qualify.
Status changes monthly. Always confirm with your state energy office before assuming a rebate.

Geothermal heat pumps

Ground-source (geothermal) heat pumps keep a federal tax credit through 2032 under Section 25D — one of the few federal incentives that survived.

Utility and local rebates

Many electric utilities offer their own heat pump rebates ($300–$1,500 is common) independent of federal or state programs. These stack with HEEHRA where available.

Wondering whether a heat pump still pays off without the federal credit? Run the numbers with our 2026 calculator → — you can enter any state rebate you qualify for.

How to find your rebate

Start with your state energy office's website and search "[your state] home energy rebates" — that's where HEEHRA programs are administered. Then check your electric utility's rebate page. A reputable installer will usually know what's currently available and funded in your area, but verify the dollar figures yourself, since installers sometimes quote expired federal credits.

Incentive programs and funding levels change frequently. This guide reflects the situation in mid-2026; confirm current eligibility and funding before purchasing. Estimates only — not tax advice.