Last updated: July 28, 2026
Handle danger before rebate paperwork. Leave the home and call 911 or the gas utility from outside if you smell gas. Leave and seek emergency help if a carbon monoxide alarm sounds or anyone has headache, dizziness, vomiting, confusion, chest pain, or trouble breathing. See the CDC carbon monoxide guide. During dangerous heat, call 211 or local emergency management for cooling-center help and follow the Ready.gov heat steps.
Bottom Line
A heat pump installed in 2026 does not qualify for the former federal Energy Efficient Home Improvement Credit or Residential Clean Energy Credit. Both ended after December 31, 2025. A qualifying 2025 system may still be claimed on a 2025 return or, in some cases, an amended return.
For a 2026 project, start with your state, territory, Tribe, utility, city, or county. DOE rebates are active only in select places. Many programs require approval, a listed contractor, or eligible equipment before installation.
Do not sign based on a promised “government rebate.” Read the rules, compare bids, and confirm who applies, when payment occurs, and what happens after denial.
On this page
Heat Pump Help at a Glance
| Option | Type of help | What it may provide | Main reality check |
|---|---|---|---|
| Federal 25C heat pump credit | Nonrefundable tax credit | For a qualifying heat pump placed in service in 2025, 30% of eligible cost up to $2,000 | Ended for property placed in service after December 31, 2025; unused 25C credit cannot be carried forward |
| Federal 25D geothermal credit | Nonrefundable tax credit | For qualifying geothermal expenditures through December 31, 2025, generally 30% of eligible cost | Ended for expenditures after December 31, 2025; prior-year rules differ from the air-source heat pump credit |
| High-Efficiency Electric Home Rebate, often called HEEHR or HEAR | State-, territory-, or Tribal-run rebate | Up to $8,000 toward an eligible electric heat pump, within a household cap of up to $14,000 | Household income must generally be at or below 150% of area median income; local programs set product, contractor, and application rules |
| Home Owner Managing Energy Savings, or HOMES | State- or territory-run whole-home rebate | Up to $8,000 for an eligible project with modeled energy savings of at least 20% | It is not a simple equipment coupon; the project must follow the local program’s assessment and savings process |
| Utility, city, or county incentive | Rebate, service, grant, loan, or bill credit | May lower equipment, electrical, weatherization, or installation costs | Service areas, eligible models, funding, deadlines, and stacking rules vary |
| Weatherization Assistance Program | No-cost weatherization service | An energy audit and approved measures such as air sealing, insulation, duct work, or heating and cooling health-and-safety work | It is not cash and does not guarantee full heat pump replacement; waitlists are common |
| LIHEAP | Energy benefit, crisis help, weatherization, minor repair, or referral | May help with energy bills, a heating or cooling crisis, or a local energy-related repair path | Benefits, seasons, income rules, and repair coverage are set by each state or Tribe |
| USDA Section 504 | Loan or limited grant | Loans up to $40,000; grants up to $10,000 for eligible homeowners age 62 or older to remove health and safety hazards | Very-low-income rural owner-occupants only; the loan is 1% for up to 20 years, and a grant may be repaid if the home is sold within three years |
What to Do Before You Sign a Heat Pump Contract
- Write down the problem. Note whether the old system is unsafe, broken, costly to run, or unable to keep the home at a safe temperature.
- Check local incentives first. Enter your ZIP code in the ENERGY STAR rebate finder. Then check the DOE rebate status and your utility.
- Ask whether approval must come first. Confirm whether you need an application, income verification, audit, reservation number, approved contractor, or listed equipment before purchase or installation.
- Ask what costs count. A program may exclude permits, ducts, panel work, wiring, asbestos, structural repairs, or backup heat.
- Get written bids. Ask for matched model numbers, efficiency ratings, an AHRI certificate, load calculation, permits, warranty, and total installed cost.
- Compare the net price. List every rebate, discount, loan fee, interest charge, and amount due before payment arrives.
- Keep proof. Save approvals, bids, invoices, model labels, photos, payments, inspections, and rebate decisions.
For a broader local search process, use our guide to finding local repair programs. If an application is required, review the repair application steps before work starts.
Federal Heat Pump Tax Credits Ended After 2025
The 2025 Form 5695 instructions end the Energy Efficient Home Improvement Credit for property placed in service after December 31, 2025, and the Residential Clean Energy Credit for expenditures after that date. A 2025 purchase, deposit, contract, or delivery does not preserve a credit for property placed in service in 2026.
Air-source heat pumps placed in service in 2025
For an eligible electric or natural gas heat pump placed in service in 2025, Section 25C was generally 30% of qualified cost, up to a combined $2,000 annual limit with heat pump water heaters and qualifying biomass equipment. The IRS 25C page explains the former credit, and the IRS credit FAQ confirms it was nonrefundable.
Nonrefundable means the credit could reduce federal income tax owed but could not exceed the taxpayer’s liability. The IRS timing guidance says unused 25C credit cannot be carried forward. A missed credit may generally be added through an amended return within three years after filing the original return or two years after paying the tax, whichever is later.
Eligible cost could include certain original-installation labor. Interest, loan fees, and extended warranties did not count. Utility subsidies and qualifying rebates may reduce the cost used for the credit; DOE Home Energy Rebates are treated as purchase-price reductions.
The 2025 product number rule
A 2025 claim also needs product information from a qualified manufacturer. IRS product-number guidance allows a four-character qualified manufacturer code for specified property placed in service in 2025 instead of the full 17-character product number. For a split heat pump, use the outdoor unit’s number. Keep it with the model and tax records.
Geothermal heat pumps placed in service by 2025
Geothermal systems used the separate Section 25D Residential Clean Energy Credit. The IRS clean energy page explains the prior rules. Qualifying expenditures through December 31, 2025, were generally eligible for 30% with no overall dollar cap, and unused 25D credit may be carried forward. Get tax advice when dates, ownership, business use, or carryforward amounts are unclear.
Do not let a 2026 salesperson count an expired federal credit as part of your savings. Ask for the net contract price without any federal residential tax credit. A current state or utility rebate is separate and must be verified with the program that pays it.
DOE Home Energy Rebates in 2026
There is no single national application or household deadline. States, territories, and Tribes run programs within federal rules and control local deadlines and available funds. DOE says rebates are open in select states; others may be developing, paused, limited, or closed. Use the state energy office directory for the household page.
High-Efficiency Electric Home Rebate
The High-Efficiency Electric Home Rebate is shortened to HEEHR; some agencies call it HEAR. It is a rebate, not a tax credit or unrestricted grant. It may cover an eligible electric heat pump and certain panel, wiring, insulation, air-sealing, ventilation, or appliance work.
| Household income | Federal maximum cost share | Heat pump cap | What the local program decides |
|---|---|---|---|
| At or below 80% of area median income | Up to 100% of eligible project cost | Up to $8,000 | Eligible homes, products, contractors, installation costs, verification, and payment method |
| Above 80% and at or below 150% of area median income | Up to 50% of eligible project cost | Up to $8,000, but the 50% cost limit still applies | Eligible homes, products, contractors, installation costs, verification, and payment method |
| Above 150% of area median income | Not eligible under the federal HEEHR income rules | None under HEEHR | You may still qualify for HOMES, utility, local, or manufacturer incentives |
The total HEEHR household cap is up to $14,000. The $8,000 heat pump amount is a maximum, not a promise. Area median income depends on location and household size. The local program verifies income and decides whether payment is a point-of-sale discount, contractor payment, reservation, or reimbursement.
HEEHR is not retroactive. Do not buy or install first unless the local program gives written approval.
HOMES whole-home rebates
HOMES is a whole-home energy rebate. DOE requires at least 20% modeled energy savings and allows up to $8,000. A heat pump may be part of the approved package, along with measures listed in the DOE upgrade guide, but the rebate is not based only on the equipment receipt.
Projects begun on or after August 16, 2022, can have limited retroactive HOMES eligibility only when every federal and state rule is met and the state accepts the project. DOE’s retroactive rebate notice is not a payment promise. Assume preapproval is required unless the state says otherwise in writing.
State rebate call script
“I am planning a heat pump project at my home in ZIP code [ZIP]. Is your HEEHR or HOMES program accepting household applications now? Do I need income approval, an energy assessment, a reservation, an approved contractor, or an eligible model before I sign or pay anything? Please send me the current written rules.”
Utility, Local, and Manufacturer Rebates
Utility rebates may be the fastest 2026 option. Search the official utility site and call the number on your bill. Ask about ducted, ductless, and cold-climate heat pumps, panel work, income adders, and early replacement.
The ENERGY STAR heat pump page helps compare certified products, but certification does not guarantee payment. Utilities may require a matched system, efficiency level, approved contractor, installation window, inspection, or old-equipment removal.
Local offices may offer a grant, forgivable or deferred loan, rebate, or low-interest loan. Ask about liens, owner-occupancy periods, repayment, and income limits. Manufacturer and contractor discounts are private price reductions, not government grants.
Utility call script
“I am replacing my heating and cooling system with a heat pump. Which rebates serve my address? Do I need approval before purchase, an approved contractor, or specific model numbers? What documents are required, when does the offer end, and can it be combined with state or manufacturer rebates?”
Help When You Cannot Afford the Upfront Cost
A rebate may not help if you must pay the full bill first. Ask whether it is deducted at sale, paid to the contractor, advanced, or reimbursed after inspection. Before borrowing, screen for weatherization, crisis help, rural repair, and local housing programs.
Weatherization Assistance Program
WAP is a no-cost service run by state and local agencies, often a Community Action Agency. The DOE application page says households at or below 200% of federal poverty guidelines or receiving Supplemental Security Income meet federal rules. A state may use the LIHEAP limit of 60% of state median income instead.
Homeowners and renters may apply, though renters usually need owner permission. An energy audit selects cost-effective work such as air sealing, insulation, ducts, or heating and cooling safety measures. WAP does not guarantee cash or a new heat pump. Priority may go to older adults, disabled people, families with children, high-energy users, and households with high energy burdens.
LIHEAP energy and crisis help
LIHEAP is an energy benefit and local service path. A state or Tribe may offer bill help, shutoff prevention, crisis heating or cooling help, weatherization, or minor energy-related repairs. Use the state LIHEAP finder or Tribal LIHEAP finder. The National Energy Assistance Referral line is 1-866-674-6327, generally open 7 a.m. to 7 p.m. Eastern.
Use 211 local help if you do not know which office serves your ZIP code.
USDA Section 504 rural repair help
USDA Section 504 is a repair loan or limited health-and-safety grant, not a rebate. It serves very-low-income rural homeowners who occupy the home and cannot obtain affordable credit elsewhere. USDA lists loans up to $40,000 at 1% fixed interest for up to 20 years. Grants up to $10,000 are for eligible homeowners age 62 or older and must remove hazards; repayment is required if the home is sold within three years.
An unsafe heating system may fit, but approval depends on rural location, county income limits, property condition, funding, and underwriting. Read our USDA Section 504 guide and the USDA fact sheet.
Manufactured-home owners should review manufactured-home repair rules. Programs may require a title, lot lease, park approval, safe utility connections, and proof the unit can be repaired within budget.
Contractor and Project Rules That Affect Approval
A heat pump must be sized for the home, not chosen only from the old nameplate or rebate cap. Ask for a load calculation, matched indoor and outdoor units, duct and airflow findings, electrical needs, backup heat, permits, commissioning, and warranties.
- Good sign: The contractor provides model numbers, efficiency ratings, an AHRI certificate, itemized costs, license and insurance information, permit plan, and rebate responsibilities in writing.
- Good sign: The contractor checks insulation, air leakage, ducts, electrical capacity, drainage, and equipment location before final sizing.
- Warning sign: The salesperson says every household gets $8,000 or that the federal tax credit still pays for a 2026 install.
- Warning sign: The bid hides the financed price, loan fees, interest rate, lien, property-tax payment, or what happens if a rebate is denied.
Contractor call script
“Before I choose a bid, I need the matched model numbers, AHRI certificate, load calculation, total installed price, permit and electrical costs, warranty, and all rebate steps in writing. Are you approved by my state or utility program, and what amount will I owe if the rebate is delayed or denied?”
Air sealing, insulation, and duct repair can reduce the needed system size and operating cost. Moisture, roof leaks, asbestos, unsafe wiring, or structural damage may delay installation until workers can enter safely.
Documents to Gather
Start a paper or digital folder. Our repair document checklist covers difficult ownership and income situations.
| Document | Why it may be needed | Examples |
|---|---|---|
| Identity and address | Confirms the applicant and service location | Photo ID, utility bill, lease, tax bill, or official mail |
| Ownership or permission | Shows who can approve work | Deed, mortgage statement, tax record, manufactured-home title, landlord form, or park approval |
| Household and income proof | Used for HEEHR, WAP, LIHEAP, USDA, and local programs | Pay stubs, Social Security or pension letter, benefit notices, unemployment record, or tax return |
| Energy records | Shows account, fuel, usage, and energy burden | Electric, gas, propane, or fuel-oil bills |
| Repair proof | Shows the system condition and urgency | Photos, red-tag notice, inspection report, repair diagnosis, or code notice |
| Project documents | Proves eligible equipment and cost | Written bids, matched model numbers, AHRI certificate, load calculation, permits, and program approval |
| Payment and completion proof | Needed for reimbursement, inspection, or a prior-year tax claim | Final invoice, proof of payment, installation date, inspection, rebate statement, and manufacturer code |
Keep a photo of the old equipment label if it is safe to reach. Save the outdoor and indoor unit labels after installation too. Model numbers that are missing or do not match are a common paperwork problem.
If the Rebate Is Delayed, Denied, or Closed
Ask for the reason in writing. A delay may mean missing proof, inspection, correction, or funding. Some denials can be fixed.
Common reasons help is lost
- The project began before required approval or reservation.
- The contractor was not approved.
- The matched equipment did not meet the program rule.
- Income, address, ownership, or landlord permission was not proven.
- The home needed electrical, structural, moisture, asbestos, or roof work outside the program scope.
- The invoice did not separate equipment, labor, permits, discounts, rebates, and financing.
- The program closed, exhausted a funding round, or limited service to certain customers or ZIP codes.
Ask whether you can correct, appeal, reapply, join a waitlist, or use another incentive. If HEEHR income is too high, HOMES or a utility rebate may still fit. If replacement is unaffordable, ask WAP about weatherization or safety work and local housing programs about broader repairs.
Denial or delay script
“I received a denial, missing-document notice, or delay for heat pump assistance. What is the exact reason? Can I correct or appeal it, what is the deadline, and which document or project change is needed? If this program cannot help, which utility, weatherization, LIHEAP, rural repair, or local housing program should I contact?”
Scams and Unsafe Financing
No legitimate program can promise every household a free heat pump. Be cautious when a caller, social media ad, or door-to-door seller says you are preapproved for government money you never requested.
- Do not pay an application or “release” fee for a government rebate.
- Do not sign today only because a salesperson says funding expires at midnight.
- Do not send tax returns, ID, Social Security numbers, or bank records through an unverified lead form.
- Do not pay the full project price upfront or by cash, wire transfer, gift card, or cryptocurrency.
- Do not sign a loan, lien, mortgage, or property-tax assessment without understanding the total cost and sale or refinance effect.
The FTC contractor guide recommends checking licenses and insurance, comparing written estimates, and reading the contract. Also verify the program and compare repair loans safely.
Before home-secured financing, talk with a HUD-approved counselor through the CFPB counselor finder. A tax credit is not cash at closing, a rebate is not guaranteed before approval, and projected energy savings do not guarantee loan payments.
A Simple Action Plan
- First action: Check DOE, ENERGY STAR, your state energy office, and your utility before signing.
- Next action: Get written eligibility and preapproval rules, then compare itemized bids from qualified contractors.
- Backup action: If the project is unaffordable or the rebate is closed, call 211 and apply for WAP, LIHEAP, USDA rural repair help, or local owner-occupied repair assistance.
Frequently Asked Questions
Is there a federal heat pump tax credit for a 2026 installation?
No. The Energy Efficient Home Improvement Credit ended for property placed in service after December 31, 2025. The Residential Clean Energy Credit also ended for expenditures made after that date. Do not include either former credit when pricing a 2026 project.
Can I still claim a heat pump installed in 2025?
Possibly. A qualifying air-source heat pump placed in service in 2025 may qualify for the former 25C credit of 30% of eligible cost, up to $2,000, if all product, home, manufacturer, and tax rules were met. File Form 5695 with the 2025 return. A missed claim may sometimes be added through an amended return within the IRS time limit.
Can I get an $8,000 heat pump rebate in 2026?
Maybe. Up to $8,000 can be available through a state-, territory-, or Tribal-run HEEHR program for an eligible electric heat pump, or through a qualifying HOMES whole-home project. The local program must be active, and the household and project must qualify. The maximum is not guaranteed.
Should I install the heat pump before applying for a rebate?
Usually not. HEEHR is not retroactive, and many utility and state programs require approval, a reservation, an approved contractor, or listed equipment before purchase or installation. Limited HOMES retroactivity may exist only when the state accepts it and every rule is met. Get written confirmation first.
Can renters or manufactured-home residents qualify?
Sometimes. WAP and some rebate programs can serve renters, but owner permission is usually required. Manufactured homes may qualify when the local program accepts the home type and title, site, electrical, foundation, and contractor rules are met.
Can I combine a state rebate with a utility rebate?
Sometimes. Each program sets stacking and cost limits. A project cannot receive more assistance than allowed eligible cost, and one program may reduce another payment. For a 2025 tax claim, certain rebates and utility subsidies also reduce the cost used to calculate the credit.
About This Guide
How we researched this page: We checked official federal, state, local, tribal, utility, and trusted nonprofit sources linked in this article. We reviewed program names, service areas, eligibility rules, application routes, contact details, and whether each option is a grant, loan, rebate, service, or referral.
Our role: HomeRepairGrants.org is an independent information website. We do not run these programs, accept applications, choose recipients, or guarantee funding or approval.
Local changes: Funding, waitlists, service areas, income limits, and application periods change. Confirm current details with the organization that runs the program before you apply, sign papers, pay money, or start repair work.
Corrections: See something outdated or incorrect? Email info@homerepairgrants.org and include the page URL and a reliable source when possible.
Disclaimer: This guide provides general information. It is not legal, financial, tax, insurance, medical, disability-rights, contractor, or government-agency advice.
Last verified: July 28, 2026 | Next review: October 28, 2026