Heat Pump Tax Credits & Rebates in the U.S. (2026)

In the U.S., a heat pump can qualify for a 30% federal tax credit (up to $2,000 per year), point-of-sale rebates of up to $8,000 for eligible households, and additional state and utility programs. Combined, these can cover a large share of the installation cost.

First, check the installation cost and the complete guide.

Federal tax credit (25C)

The Energy Efficient Home Improvement Credit covers 30% of the cost of a qualifying heat pump, up to $2,000 per year. The equipment must meet the required efficiency tier (generally ENERGY STAR).

HEEHRA rebates

The High-Efficiency Electric Home Rebate program offers up to $8,000 toward a heat pump for low- and moderate-income households. It’s administered by each state, so availability and timing vary.

State and utility rebates

Many states and utilities offer their own rebates that stack on top of the federal incentives. Check your utility’s website and your state energy office.

⚠️ Important: amounts, eligibility and deadlines change and vary by state and utility. Always verify current terms with the IRS, ENERGY STAR, your state program and your utility (or a tax professional) before purchasing.

Frequently asked questions

Can I combine the federal credit with rebates?

Yes. Rebates typically reduce the purchase price, and the tax credit applies to the amount you pay — confirm the exact interaction for your case.

Do I need specific equipment to qualify?

Usually yes — the heat pump must meet the program’s efficiency requirements (often ENERGY STAR certified).

Does it apply to a second home?

The 25C credit generally applies to your primary residence; check the current IRS rules.