Guides

Heat pump rebates after the federal credit ended

By Electric Bill Tracker · Updated October 2026

For three years the easiest heat-pump incentive was the federal 25C credit: 30% of cost up to $2,000, no income test, claimed on your tax return. It ended for equipment placed in service after December 31, 2025. The 25D credit for solar, batteries and geothermal ended at the same time, and the 30C credit for home EV chargers ended June 30, 2026.

What is left comes from two places.

State IRA rebate programs (HEAR and HER)

The Inflation Reduction Act funded two rebate programs that states run themselves. Unlike the tax credits they are point-of-sale discounts, and unlike the tax credits they are still funded.

• HEAR (Home Electrification and Appliance Rebates). Up to $8,000 for a heat pump, $1,750 for a heat-pump water heater, $840 for an electric stove or heat-pump dryer, $4,000 for a panel upgrade, $2,500 for wiring, $1,600 for insulation, capped at $14,000 per household. Income-tested: households under 80% of area median income get 100% of cost covered up to the cap; 80–150% AMI get 50%; above 150% AMI are not eligible.
• HER (Home Efficiency Rebates). Up to $8,000 (or $16,000 for low-income) for whole-home retrofits based on modeled or measured energy savings of at least 20%. No hard income cap, but low-income households get double.

Status varies by state. Georgia, New York, California, Michigan, Wisconsin, Maryland, Washington, Rhode Island and North Carolina have programs open. Some states launched in 2024 and have already spent most of their allocation; a few have not launched. The utility pages on this site note the state program when we have confirmed it is accepting applications.

Utility rebates

Separate from the state programs and usually not income-tested. Typical ranges in 2026:

• Heat pump: $250–$1,500, often tiered by SEER2 rating (Georgia Power pays $250 at 15 SEER up to $625 at 18+ SEER, plus up to $1,000 through its Home Energy Improvement Program).
• Heat-pump water heater: $300–$1,000.
• Smart thermostat: $50–$100.
• Battery or smart EV charger enrollment in a demand-response program: $100–$500 up front plus annual bill credits (Dominion pays $125 plus $40 a year for a managed Level 2 charger).

Rebates are usually paid to the contractor, who discounts the invoice, or mailed after you submit the form. Most require a licensed contractor and equipment from the utility’s qualified list.

Stacking rules

• Utility rebate + state HEAR/HER: usually allowed. The state programs were designed to combine with utility programs.
• HEAR + HER on the same measure: not allowed. You pick one.
• Any of the above + a state tax credit: usually allowed where a state credit exists (e.g. New York, Massachusetts).
• The combined incentive cannot exceed the project cost.

Before you sign a contract

1. Check the utility page here for the current amounts and the date we last verified them.
2. Confirm the contractor is on the program’s approved list; many programs will not pay otherwise.
3. Get the rebate reservation or pre-approval before installation if the program requires one. HEAR almost always does.
4. Keep the AHRI certificate for the equipment; it is the proof of efficiency rating.