Heat Pump Rebates by State: Where Incentives Are Still Available (2026)
Federal heat pump tax credits ended December 31, 2025. But state and utility heat pump incentives still range from $0 to over $16,000 depending on where you live and your household income. Some states have launched IRA-funded HEAR and HOMES programs worth thousands. Others have almost nothing. This guide covers heat pump rebates in all 50 states and DC in 2026, ranked by how much you can realistically get. Here's what's actually available.
Last verified: March 24, 2026
Rates and program availability may change after this date.
The Short Version
16
States with strong rebates ($5,000+)
15
States with moderate rebates ($1,000–$5,000)
20
States with limited or no rebates
Highest rebates: New York, Maryland, Wisconsin, Colorado, Washington, Rhode Island, and North Carolina — all offer $10,000+ for income-qualifying households through stacked programs. Lowest incentives: Ohio, Idaho, South Dakota, and states that declined IRA funding have little beyond small utility rebates. Federal tax credits (25C/25D) are gone for everyone.
The 10 Best States for Heat Pump Rebates in 2026
Ranked by realistic maximum rebates available to a homeowner installing a ducted heat pump system, combining all stackable programs.
New York — $5,000–$24,000
Clean Heat + EmPower+ + HEAR + geothermal credit
Wisconsin — Up to $18,900
HEAR + HOMES + Focus on Energy (first state to launch HOMES)
Maryland — Up to $15,000
EmPOWER (75% of costs) + Potomac Edison Switch-to-Electric
Washington — Up to $14,000+
HEAR + Puget Sound Energy + utility stack
Colorado — Up to $11,250
HEAR + Xcel Energy + $1,000 state tax credit
Rhode Island — Up to $11,500
Clean Heat RI (60% of costs) + RI Energy rebates
North Carolina — Up to $16,000
Energy Saver NC (HEAR + HOMES) + Duke Energy
Georgia — Up to $16,000
HEAR + HER whole-home + Georgia Power
Washington DC — Up to $9,800
DCSEU electrification + AHEP for low-income
Maine — $1,000–$9,000
Efficiency Maine (Triennial Plan VI, $529M funded)
Close runners-up
Massachusetts, New Jersey, Michigan, and Vermont all offer $7,000–$8,500 in realistic rebates and could move higher as programs expand.
Federal tax credits are gone. The Section 25C Energy Efficient Home Improvement Credit and Section 25D Residential Clean Energy Credit both expired December 31, 2025. They were repealed by the One Big Beautiful Bill Act (signed July 4, 2025). No federal tax credit applies to heat pumps installed in 2026. Full details on the federal credit expiration →
What replaced federal credits?
Nothing directly. But IRA-funded HEAR and HOMES rebate programs — administered by individual states — are the main replacement. HEAR offers up to $8,000 per heat pump for households below 150% of Area Median Income (AMI). HOMES offers up to $4,000–$10,000 for whole-home efficiency projects at any income level. The catch: many states have not launched these programs yet, and funding availability varies.
States With Strong Heat Pump Rebates ($5,000+)
These 16 states have active programs that can realistically cover $5,000 or more of a heat pump installation for qualifying homeowners. Most have launched IRA-funded HEAR or HOMES rebates, have strong state-administered programs, or both. Income-qualified households (below 80% AMI) often qualify for the highest amounts.
| State | Status | Rebate Range | Primary Program |
|---|---|---|---|
| New York | 🟢 | $5,000–$24,000 | Clean Heat + EmPower+ |
| Maryland | 🟢 | Up to $15,000 | EmPOWER Maryland |
| Rhode Island | 🟢 | Up to $11,500 | Clean Heat RI |
| Colorado | 🟢 | Up to $11,250 | HEAR + Xcel + state credit |
| Wisconsin | 🟢 | Up to $18,900 | HEAR + HOMES + Focus on Energy |
| Michigan | 🟢 | Up to $8,000 | MiHER (HEAR) |
| Maine | 🟢 | $1,000–$9,000 | Efficiency Maine |
| Massachusetts | 🟢 | Up to $8,500 | Mass Save |
| New Jersey | 🟢 | Up to $7,500+ | Whole Home + utility rebates |
| Washington | 🟢 | Up to $14,000+ | HEAR + PSE |
| North Carolina | 🟢 | Up to $16,000 | Energy Saver NC |
| Georgia | 🟢 | Up to $16,000 | HEAR + HER |
| Indiana | 🟢 | Up to $8,000+ | Indiana Energy Saver (HEAR) |
| Arizona | 🟢 | Up to $8,000 | Efficiency Arizona HEAR |
| Washington DC | 🟢 | Up to $9,800 | DCSEU electrification |
| Vermont | 🟢 | Up to $7,950 | Efficiency VT + BED |
✓ Best overall programs
New York, Maryland, Wisconsin, and Colorado stand out for having the deepest stacking — multiple program layers that combine to cover a large share of project costs. Income-qualified households in these states can often get a heat pump system for $2,000–$5,000 out of pocket on a $12,000–$18,000 project.
States With Moderate Heat Pump Rebates ($1,000–$5,000)
These 15 states offer meaningful rebates — typically through utility programs, state energy offices, or approved-but-not-yet-launched HEAR programs. The amounts are helpful but generally will not cover a large share of installation costs. Some of these states will move into the “strong” tier once their HEAR or HOMES programs launch.
| State | Status | Rebate Range | Primary Program |
|---|---|---|---|
| New Hampshire | 🟢 | $250–$1,900/ton | NHSaves + NE Accelerator |
| Oregon | 🟢 | $800–$3,500+ | Energy Trust of Oregon |
| Connecticut | 🟢 | $250–$1,000/ton | Energize CT |
| Minnesota | 🟢 | Up to $2,600 | Xcel + CenterPoint |
| Nevada | 🟡 | $510–$3,400 | NV Energy PowerShift |
| New Mexico | 🟡 | Up to $8,000 | HEAR + geothermal credit |
| Delaware | 🟢 | $800–$2,200 | Energize Delaware |
| Utah | 🟡 | $2,450–$2,650 | RMP + Enbridge stack |
| Kentucky | 🟡 | $500–$3,000 | TVA EnergyRight + EKPC |
| Pennsylvania | 🟡 | $350–$1,950 | Act 129 utility rebates |
| Virginia | 🟡 | Up to $2,000 | Washington Gas (NoVA only) |
| Missouri | 🟡 | $200–$5,000 | Ameren + Evergy + Columbia W&L |
| Hawaii | 🟢 | $450–$700 | Hawaii Energy |
| Louisiana | 🟡 | Up to $3,500 | SWEPCO + Cleco |
| Illinois | 🟢 | Up to $2,000 | ComEd + Ameren |
⚠ Watch these states
New Hampshire, Connecticut, Nevada, and Pennsylvania all have approved IRA funding that has not launched yet. When those programs go live, rebates in those states could jump by $4,000–$8,000. Check individual state guides for the latest status.
States With Limited or No Heat Pump Rebates
These 20 states have sparse incentives — typically utility-only programs with modest amounts, or no active programs at all. A few (South Dakota, Idaho) have declined IRA rebate funding entirely. For homeowners in these states, the math depends almost entirely on energy savings rather than upfront rebates.
| State | Status | Rebate Range | Primary Program |
|---|---|---|---|
| Texas | 🟡 | Varies widely | Utility-by-utility |
| California | 🟡 | Utility-only | SMUD, LADWP |
| Tennessee | 🟡 | $500–$1,500 | TVA EnergyRight |
| Alabama | 🟡 | $500–$1,500 | TVA + Alabama Power |
| South Carolina | 🟡 | $300–$1,000 | Duke + Dominion + Santee Cooper |
| Iowa | 🟡 | $300–$713 | MidAmerican + Alliant |
| Montana | 🟡 | $450–$1,560 | NorthWestern + BPA co-ops |
| Wyoming | 🟡 | $500–$1,700 | RMP Wattsmart + co-ops |
| North Dakota | 🟡 | $300–$2,000 | Otter Tail + Xcel |
| Florida | 🟡 | $40–$1,150 | FPL, Duke, TECO |
| Ohio | 🟡 | Almost none | ECO-Link loans only |
| Idaho | 🟡 | $400–$800 | Idaho Power + Avista |
| South Dakota | 🟡 | $0–$4,000+ | Varies by utility |
| Alaska | 🟡 | Limited | Utility-specific |
| Arkansas | 🟡 | Limited | Utility-specific |
| Kansas | 🟡 | Limited | Utility-specific |
| Mississippi | 🟡 | Limited | TVA + utility-specific |
| Nebraska | 🟡 | Limited | OPPD + public power |
| Oklahoma | 🟡 | Limited | OG&E + PSO |
| West Virginia | 🟡 | Limited | Utility-specific |
Even in limited states, check your utility
Rebate availability often depends more on your electric utility than your state. In Texas, Austin Energy customers can get ~$3,000 while most of the state gets nothing. In South Dakota, Otter Tail Power customers get $4,000+ while NorthWestern Energy customers get $0. Always check with your specific utility before assuming nothing is available.
What Determines How Much You Can Get
Heat pump rebates in 2026 depend on four factors. Understanding these helps explain why the same heat pump installation might cost $4,000 out of pocket in Colorado but $15,000 in Florida.
1. Whether your state launched HEAR or HOMES
This is the single biggest factor. States that have launched IRA-funded HEAR programs offer up to $8,000 per heat pump for households below 150% AMI. HOMES adds up to $4,000–$10,000 for whole-home projects. About a dozen states have active programs. The rest have approved funding sitting unused — some by choice, some waiting for federal approval.
2. Your household income relative to AMI
HEAR and many state programs use Area Median Income (AMI) thresholds. Households below 80% AMI get the highest rebates (often 100% of costs). Households at 80–150% AMI get partial rebates. Above 150% AMI, HEAR does not apply — you are limited to utility rebates and state programs that do not income-qualify.
3. Your electric utility
Utility rebates range from $0 to $4,000+ and vary dramatically even within the same state. In New York, Con Edison and National Grid offer very different amounts for the same equipment. Municipal utilities and rural electric cooperatives often have separate programs. Always check your specific utility.
4. Stacking rules
The best outcomes come from stacking multiple program layers: HEAR + utility + state tax credit + local municipal rebate. Most states allow stacking as long as total incentives do not exceed 100% of project cost. A few states restrict it. The stacking math is where the real value is — check your state guide for specific scenarios.
Common Mistakes When Searching for Rebates
⚠ Assuming the federal credit still exists
Many websites and contractors still list the $2,000 federal tax credit (Section 25C) as available. It is not. It ended December 31, 2025. If someone tells you the credit is still available, they are wrong or out of date.
⚠ Confusing HEAR with the federal tax credit
HEAR is a point-of-sale rebate administered by your state — not a tax credit you claim on your return. It also has income limits (150% AMI). These are different programs with different rules.
⚠ Starting work before checking HEAR eligibility
In most states, HEAR rebates must be applied for before installation begins. Projects started before your state's HEAR program launches are not retroactively eligible. If HEAR is coming soon to your state, it may be worth waiting.
Find Your State's Full Guide
We publish detailed guides for every state with verified dollar amounts, stacking scenarios, and application steps. Select your state below.
Alabama
🟡 Limited programs
Alaska
🟡 Limited programs
Arizona
🟢 Active programs
Arkansas
🟡 Limited programs
California
🟡 Limited programs
Colorado
🟢 Active programs
Connecticut
🟢 Active programs
Delaware
🟢 Active programs
Florida
🟡 Limited programs
Georgia
🟢 Active programs
Hawaii
🟢 Active programs
Idaho
🟡 Limited programs
Illinois
🟢 Active programs
Indiana
🟢 Active programs
Iowa
🟡 Limited programs
Kansas
🟡 Limited programs
Kentucky
🟡 Limited programs
Louisiana
🟡 Limited programs
Maine
🟢 Active programs
Maryland
🟢 Active programs
Massachusetts
🟢 Active programs
Michigan
🟢 Active programs
Minnesota
🟢 Active programs
Mississippi
🟡 Limited programs
Missouri
🟡 Limited programs
Montana
🟡 Limited programs
Nebraska
🟡 Limited programs
Nevada
🟡 Limited programs
New Hampshire
🟢 Active programs
New Jersey
🟢 Active programs
New Mexico
🟡 Limited programs
New York
🟢 Active programs
North Carolina
🟢 Active programs
North Dakota
🟡 Limited programs
Ohio
🟡 Limited programs
Oklahoma
🟡 Limited programs
Oregon
🟢 Active programs
Pennsylvania
🟡 Limited programs
Rhode Island
🟢 Active programs
South Carolina
🟡 Limited programs
South Dakota
🟡 Limited programs
Tennessee
🟡 Limited programs
Texas
🟡 Limited programs
Utah
🟡 Limited programs
Vermont
🟢 Active programs
Virginia
🟡 Limited programs
Washington
🟢 Active programs
Washington DC
🟢 Active programs
West Virginia
🟡 Limited programs
Wisconsin
🟢 Active programs
Wyoming
🟡 Limited programs
Or browse by tier in the tables above, or use the heat pump hub to search by state.
What About Home Batteries?
If you are considering a heat pump, you may also be weighing home battery storage — especially in states with time-of-use rates or net metering. The federal battery tax credit (Section 25D) also expired at the end of 2025, which changes the economics significantly.
Frequently Asked Questions
Which states have the best heat pump rebates in 2026?
New York, Maryland, Rhode Island, Colorado, Wisconsin, and Michigan offer the strongest heat pump rebates in 2026, with programs reaching $8,000–$24,000 for qualifying households. These states have active IRA-funded HEAR or HOMES programs stacking with utility rebates.
Are federal heat pump tax credits still available in 2026?
No. Federal heat pump tax credits under Sections 25C and 25D expired on December 31, 2025. They were repealed by the One Big Beautiful Bill Act signed July 4, 2025. No federal tax credit is available for heat pumps installed in 2026.
What is the HEAR program and which states have it?
HEAR (Home Electrification and Appliance Rebates) is a federally funded, state-administered rebate program offering up to $8,000 per heat pump for income-qualifying households (below 150% of Area Median Income). As of March 2026, about a dozen states have launched HEAR programs including Colorado, Wisconsin, Michigan, North Carolina, Georgia, Indiana, Arizona, and Washington. Many other states have received funding but have not launched consumer-facing programs.
Can you stack heat pump rebates from different programs?
In most states, yes. Utility rebates, state programs, and IRA-funded HEAR or HOMES rebates can typically stack. The rules vary by state. Some states like Colorado and Wisconsin explicitly allow stacking all three layers. The main restriction is that total incentives generally cannot exceed 100% of project cost. Check your specific state guide for stacking rules.
How much do heat pump rebates actually reduce the cost?
For a typical ducted heat pump system costing $12,000–$18,000 installed, rebates in strong states can cover $5,000–$10,000 or more. Income-qualified households (below 80% AMI) in states with active HEAR programs can sometimes get systems for $2,000–$5,000 out of pocket. In limited states, expect $500–$2,000 off at most.
Why Heat Pump Rebates Vary So Much by State
The gap between a $24,000 rebate package in New York and almost nothing in Ohio is not random. Four structural factors drive the differences.
Utility regulation model. States with strong public utility commissions (New York, Maryland, Massachusetts) can mandate that utilities fund energy efficiency programs through ratepayer charges. Deregulated states like Texas and Ohio leave incentive decisions to individual utilities, creating a patchwork where one utility territory has rebates and the next has none.
State climate policy. States with aggressive decarbonization goals (New York's Climate Leadership and Community Protection Act, Colorado's GHG Pollution Reduction Roadmap) dedicate state funding to electrification. States without those commitments rely entirely on IRA federal funding — which many have been slow to deploy.
IRA deployment speed. Every state received IRA HEAR and HOMES funding allocations. But states had to apply to the Department of Energy, build administrative infrastructure, and select program administrators. Some (Wisconsin, Colorado, North Carolina) moved fast. Others (Florida, Texas, Ohio) have not launched programs despite receiving hundreds of millions. A few (South Dakota, Idaho) declined the money outright.
Heating fuel mix. States where homes primarily heat with oil or propane (Maine, Vermont, New Hampshire) tend to have stronger heat pump programs because the economics of switching are clearer. States where natural gas is cheap and dominant (Texas, Oklahoma, Kansas) have less political and economic incentive to fund electrification programs.
Methodology & Sources
State tier rankings are based on the realistic maximum rebate available to a homeowner installing a ducted air-source heat pump system in 2026. We verified program status, dollar amounts, and eligibility rules directly against official state energy office websites, utility program pages, and IRS guidance. Each state's individual guide lists all sources with verification dates.
Tier placement reflects editorial judgment — not just the “status” field in program databases. A state marked “open” may still have limited practical value if programs are restricted to narrow income bands or specific utility territories.
Disclaimer: This page summarizes heat pump rebates and incentives available across U.S. states in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Tier rankings reflect editorial judgment based on verified data and may not capture every local program or recent change. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with your state energy office, utility, and contractor before making decisions.