Quick answer: The federal heat pump tax credits (Section 25C and 25D) both expired December 31, 2025 — 2026 installs don’t qualify. The money now comes from IRA-funded HEAR rebates (up to $8,000 toward a heat pump if you income-qualify, part of up to $14,000 total) plus state and utility rebates. The catch: HEAR is income-based and funds are limited — California’s program is already fully reserved. The reliable way to find what you can still get is the DSIRE database (dsireusa.org) and your utility’s website.
Last verified: July 6, 2026. Federal credit status confirmed against ENERGY STAR and the DOE; HEAR/HEEHRA details from DOE and state energy offices. Programs change fast — always confirm current availability. Sources in the methodology section.
The federal tax credits are gone — both of them
This is the big 2026 change, and many pages haven’t caught up. Under the One Big Beautiful Bill Act:
- Section 25C (air-source heat pumps, up to $2,000) — expired for systems placed in service after December 31, 2025.
- Section 25D (geothermal heat pumps, 30%) — also expired after December 31, 2025, despite older guides that still claim it runs to 2032. We confirmed this directly against ENERGY STAR.
Only systems installed and operational by December 31, 2025 qualify (claim on IRS Form 5695 with your 2025 return). For 2026, the federal tax credit path is closed — but the rebate path is open.
What replaced them: HEAR and HOMES rebates
The IRA created two rebate programs, funded federally and run by each state’s energy office. Unlike the expired tax credits, these survived — and they’re point-of-sale rebates (money off at purchase), not something you wait for at tax time.
HEAR (Home Electrification & Appliance Rebates)
Originally called HEEHRA. Income-qualified households can get:
| Measure | Maximum rebate |
|---|---|
| Heat pump (space heating/cooling) | $8,000 |
| Heat pump water heater | $1,750 |
| Electric stove / cooktop | $840 |
| Electrical panel upgrade | $4,000 |
| Wiring | $2,500 |
| Total cap across all measures | $14,000 |
Income tiers (of area median income, AMI):
- Below 80% AMI: up to 100% of project cost covered (up to the caps above)
- 80–150% AMI: up to 50% of project cost covered
- Above 150% AMI: not eligible for HEAR (use state/utility rebates instead)
HOMES (Home Efficiency Rebates)
The companion program rewards whole-home energy savings rather than specific appliances, and isn’t income-restricted the same way — larger rebates for bigger measured/modeled energy reductions. Good if a heat pump is part of a broader efficiency project.
⚠️ These funds are limited — and some states are out. Each state got a fixed federal allocation. California’s HEEHRA single-family rebates were fully reserved as of February 2026, with new requests waitlisted. Roughly a dozen-plus states had live programs in 2026 and more are launching, but availability and timing vary. Check your state’s status before you count on it.
The durable way to find your rebate (works in any year)
Programs open, close, and exhaust their budgets constantly, so the reliable skill is knowing where to look:
- DSIRE (dsireusa.org) — search your ZIP for every federal, state, utility, and local program. Best starting point.
- Your state energy office — it administers HEAR/HOMES and lists current status and how to apply.
- Your electric (and gas) utility — utility heat pump rebates ($300–$2,000+) aren’t income-restricted and stack with other programs. This is the path for higher-income households who don’t qualify for HEAR.
Put it in context
A whole-home air-source heat pump costs $6,000–$13,000 installed. A HEAR rebate can cover most or all of that for a qualifying household; a utility rebate can take a few hundred to a couple thousand off for everyone else. And whether the switch lowers your running cost depends on your state — see heat pump vs gas furnace running cost and its calculator.
Methodology & sources
Verified July 6, 2026:
- Federal credit expiration (25C and 25D, December 31, 2025): confirmed against ENERGY STAR’s tax-credit pages and the DOE (post-One Big Beautiful Bill Act guidance). Third-party claims that 25D geothermal continues to 2032 are outdated.
- HEAR/HOMES amounts and structure: DOE Home Energy Rebates program design (HEAR up to $8,000 for heat pumps, $14,000 total; AMI-based tiers) and state energy-office implementations. Program names: HEEHRA (original IRA name) = HEAR (DOE rebrand).
- California fully-reserved status: California Energy Commission / TECH Clean California HEEHRA reporting, as of February 2026.
- DSIRE (dsireusa.org): authoritative address-level program database.
- Rebate amounts, eligibility, and availability vary by state and change frequently; confirm current terms with your state program and utility before purchasing.
Incentives are the most volatile data on this site. This page is re-verified on a schedule; the “verified” date reflects the latest check. Treat a program’s official current terms as correct over this page.
Frequently asked questions
Is there a federal heat pump tax credit in 2026?
No. Both the Section 25C air-source heat pump credit (up to $2,000) and the Section 25D geothermal credit (30%) expired for systems placed in service after December 31, 2025. Only installs completed by that date can be claimed. Many websites still list these credits as available — they are out of date.
What is the HEAR heat pump rebate?
HEAR (Home Electrification and Appliance Rebates, originally called HEEHRA) is an IRA-funded, state-administered program that gives income-qualified households up to $8,000 toward a heat pump — part of up to $14,000 total across heat pumps, water heaters, stoves, and electrical panels. It's a point-of-sale rebate, not a tax credit, and it's rolling out state by state.
Do I qualify for the HEAR heat pump rebate?
HEAR is income-based. Households below 80% of area median income (AMI) typically get 100% of project costs covered up to the caps; those at 80–150% AMI get about 50%; above 150% AMI are not eligible for HEAR. Check your state's program for exact thresholds — and whether funds are still available.
Can I still get a heat pump rebate if I don't qualify for HEAR?
Yes — through state and utility rebates, which aren't income-restricted the same way. Many utilities offer $300–$2,000+ toward a heat pump. Search the DSIRE database (dsireusa.org) by ZIP code and check your utility's website to find them.
Are HEAR rebate funds running out?
In some states, yes. California's HEEHRA single-family rebates were fully reserved as of February 2026, with new requests waitlisted. These programs have fixed budgets, so availability depends on your state's status and timing — confirm current availability before you buy.