Idaho Heat Pump Rebates & Incentives (2026)
Idaho homeowners installing heat pumps in 2026 face one of the weakest incentive landscapes in the country. Federal tax credits expired December 31, 2025, and Idaho's legislature rejected IRA-funded HEAR and HOMES rebates before they ever launched. The only remaining support comes from utility rebate programs, ranging from $300 to $2,400 depending on your utility. This guide covers all major Idaho heat pump incentives available in 2026, including Idaho Power, Avista, Rocky Mountain Power, Idaho Falls Power, and the OEMR State Energy Loan Program. Here's what's actually available.
Last verified: March 24, 2026
Rates and program availability may change after this date.
Idaho
Limited / Region-Dependent
Federal tax credits ended Dec 31, 2025. Idaho rejected IRA-funded HEAR and HOMES rebates. Only utility rebates remain: Idaho Power $400–$800, Avista $300–$600, Rocky Mountain Power $450–$650, Idaho Falls Power up to $2,400. No state tax credit for air-source heat pumps.
Sources:
The Short Version
✓ Utility Rebates Still Active
Idaho Power offers $400–$800 for ducted heat pumps replacing electric heat. Avista offers $300–$600. Rocky Mountain Power offers $450–$650.
✓ Idaho Falls Power — Best in State
Idaho Falls Power offers $2,000–$2,400 for air-source heat pumps plus zero-interest on-bill financing up to $10,000. By far the strongest program in Idaho.
✓ OEMR Low-Interest Loan Available
The state's Energy Loan Program offers $1,000–$30,000 at 3–7% interest for heat pump installations. Not a rebate, but reduces financing costs.
✗ Federal Tax Credits Expired
Section 25C ($2,000 for heat pumps) and Section 25D (30% for geothermal) both ended December 31, 2025. No reinstatement legislation has been introduced.
⚠ Idaho Rejected IRA Rebate Funding
Idaho's legislature killed $24.6 million in federal HEAR and HOMES funding in March 2025. These rebates — worth up to $8,000 per household for low-income homeowners — will never launch in Idaho. Only utility rebates remain.
Federal Tax Credits — Both Expired
Section 25C (Energy Efficient Home Improvement Credit) provided up to $2,000 per year for qualifying air-source heat pumps and heat pump water heaters. Section 25D (Residential Clean Energy Credit) provided 30% of total installed cost with no cap for geothermal heat pumps. Both credits were terminated by the One Big Beautiful Bill Act, signed July 4, 2025, for equipment placed in service after December 31, 2025. Equipment purchased in 2025 but not installed until 2026 does not qualify — installation completion date controls eligibility.
Homeowners who had qualifying equipment installed by December 31, 2025 can still claim credits on their 2025 tax return using IRS Form 5695. For geothermal systems, Section 25D allows unused credit to carry forward to 2026 and beyond.
HEAR and HOMES Rebates — Idaho Rejected Federal Funding
The Home Electrification and Appliance Rebates (HEAR) program would have provided Idaho homeowners with point-of-sale rebates of up to $8,000 for heat pumps, scaled by income. Households below 80% of Area Median Income (AMI) would have received up to 100% of costs. Households at 80–150% AMI would have received up to 50%.
On March 19, 2025, Idaho's Joint Finance-Appropriations Committee (JFAC) voted to zero out the Idaho Office of Energy and Mineral Resources' (OEMR) request for $24.6 million in federal IRA funding. Governor Brad Little had requested the funds, but the Republican legislative supermajority rejected the appropriation. Idaho's unspent allocation was returned to the federal government for redistribution to participating states.
⚠ Common Mistake: Expecting IRA Rebates in Idaho
The OEMR website still references these programs but explicitly warns that rebates are not available. Do not delay a heat pump purchase expecting HEAR or HOMES rebates to launch in Idaho — they will not. Focus on your utility's current rebate program instead.
Idaho does not offer a state income tax credit for air-source heat pumps. A Residential Alternative Energy Tax Deduction (Idaho Code §63-3022C) exists for geothermal heat pumps only, allowing deductions of 40% in year one and 20% in years two through four, with a maximum of $5,000 per year and $20,000 total.
OEMR State Energy Loan Program
The only meaningful state-level financial tool for Idaho homeowners is the OEMR State Energy Loan Program, which offers low-interest loans for energy efficiency projects including heat pumps. This is not a rebate — it reduces financing costs but not the purchase price.
| Term | Interest Rate | Loan Range |
|---|---|---|
| 3 years | 3% | $1,000–$30,000 |
| 5 years | 5% | $1,000–$30,000 |
| 7 years | 7% | $1,000–$30,000 |
A $100 non-refundable application fee applies. The project must be approved and funded before installation begins, and a licensed Idaho contractor is required. Applications are processed first-come, first-served through December 31, 2026.
Idaho Falls Power Offers Zero-Interest Financing
If you live in Idaho Falls, the municipal utility offers up to $10,000 in zero-interest on-bill financing over 60 months — significantly better than the OEMR loan. This can be combined with Idaho Falls Power's rebates of $2,000–$2,400 for air-source heat pumps.
Utility Rebate Programs
Utility rebates are the primary financial support for Idaho heat pump installations in 2026. Programs vary significantly by territory — from $300 in Avista's service area to $2,400 from Idaho Falls Power.
Idaho Power — Heating and Cooling Efficiency Program
Idaho Power serves southern Idaho including Boise, Nampa, Meridian, and Twin Falls. Rebates are only available when replacing electric heating systems — homes heated by natural gas from Intermountain Gas generally do not qualify.
| Equipment | Replacing | Rebate | Min. Efficiency |
|---|---|---|---|
| Ducted ASHP (existing home) | Electric baseboard/ceiling cable | $400 | 7.2 HSPF2 |
| Ducted ASHP (new construction) | N/A | $800 | 7.2 HSPF2 |
| Ground-source heat pump | Electric or propane | $3,000 | 3.5 COP |
| Open-loop water-source HP | Electric | $1,000 | 3.5 COP |
Avista Utilities — Midstream HVAC Program
Avista serves northern Idaho including Coeur d'Alene, Moscow, and Lewiston. Rebates flow through a midstream program — discounts appear on the contractor invoice rather than as a customer-filed rebate.
| Equipment | Tier 1 (8.1 HSPF2) | Tier 2 (8.5 HSPF2) | Tier 3 (9.5 HSPF2) |
|---|---|---|---|
| Ducted ASHP (retrofit) | $300 | $400 | $600 |
| Mini-split (retrofit) | $300 | $400 | $600 |
| HPWH (min 2.1 UEF) | $500 (retrofit) | $150 (new construction) | |
Rocky Mountain Power — Wattsmart Homes
Rocky Mountain Power serves southeastern Idaho including Pocatello and parts of the Idaho Falls area. Equipment must be the primary heat source serving at least 80% of conditioned space.
| Equipment | Requirement | Rebate |
|---|---|---|
| Cold-climate ASHP upgrade | 8.5 HSPF2 / 16.0 SEER2, NEEP ccASHP list | $450 |
| Electric resistance conversion to ASHP | 7.5 HSPF2 / 14.3 SEER2 | $650 |
| HPWH Tier 1 | Qualified products list | $400 |
| HPWH Tier 2+ | Qualified products list | $550 |
Idaho Falls Power — Best Incentives in Idaho
Idaho Falls Power, the municipal utility serving Idaho Falls, offers the strongest heat pump incentive program in the state. Rebates are substantially higher than any investor-owned utility, and zero-interest on-bill financing is available.
| Equipment | Conversion Type | Rebate |
|---|---|---|
| Ducted ASHP | From electric forced-air furnace | $2,000 |
| Variable-speed ASHP | From electric forced-air furnace | $2,400 |
| Ductless heat pump | From zonal electric heat | $1,600 |
| Ground-source HP | With desuperheater | $3,150 |
| HPWH 50+ gal (Tier 4) | Electric tank replacement | $1,620 |
BPA-Funded Electric Cooperatives
Several Idaho electric cooperatives offer BPA-funded heat pump rebates. Fall River Electric Cooperative offers up to $850 for ASHP conversions and $2,500 for ground-source systems. Clearwater Power offers $750 for heat pump water heaters. Contact your cooperative for current program details.
How Incentives Stack in Idaho
Stacking options in Idaho are extremely limited compared to states that participate in IRA rebate programs. With no federal credits, no HEAR or HOMES rebates, and no state tax credit for air-source heat pumps, utility rebates are the only direct cost reduction available. The OEMR loan program reduces financing costs but does not reduce the purchase price.
Above 150% AMI — Idaho Power Territory (Boise Area, Gas Heat)
- Federal tax credit (25C): $0 (expired)
- HEAR rebate: $0 (Idaho rejected funding)
- Idaho Power rebate: $0 (gas-heated homes do not qualify)
- State tax credit: $0 (none for air-source HP)
Realistic maximum: ~$0
Above 150% AMI — Idaho Power Territory (Electric Heat)
- Federal tax credit (25C): $0 (expired)
- HEAR rebate: $0 (Idaho rejected funding)
- Idaho Power rebate: $400–$800
- State tax credit: $0
Realistic maximum: ~$400–$800
Any Income — Idaho Falls Power Territory
- Federal tax credit (25C): $0 (expired)
- HEAR rebate: $0 (Idaho rejected funding)
- Idaho Falls Power rebate: $2,000–$2,400
- Idaho Falls Power zero-interest loan: up to $10,000
Realistic maximum: ~$2,000–$2,400 + zero-interest financing
What You'll Actually Pay
For a typical $15,000–$18,000 whole-home ducted heat pump system, most Idaho homeowners will pay $14,200–$17,700 out of pocket after utility rebates. Idaho Falls Power customers are the exception, with net costs of $12,600–$16,000. Gas-heated homes in Boise may qualify for $0 in rebates from Idaho Power. There are no state tax credits, no HEAR/HOMES rebates, and no federal credits to stack.
Idaho Weatherization Assistance Program
The Idaho Weatherization Assistance Program (WAP), administered by the Idaho Department of Health and Welfare through local Community Action Agencies, provides free energy efficiency upgrades to households at or below 200% of the Federal Poverty Level. While the program primarily covers insulation, air sealing, and duct work, heating system replacement — potentially including heat pumps — can be included if identified as cost-effective during the required energy audit.
Priority goes to families with elderly, disabled, or young members. Wait times can extend to three years due to limited funding. Apply through your local Community Action Agency or by dialing 2-1-1 (Idaho CareLine).
Idaho Power also runs a separate income-qualified weatherization program offering up to $6,000 in free upgrades for electrically heated homes. Contact Idaho Power or your local Community Action Agency for eligibility details.
Idaho Climate Context
Idaho is entirely within IECC climate zones 5B and 6B. Cold-climate heat pumps are essential across the entire state — standard heat pumps would rely heavily on electric resistance backup below 15–20°F, eliminating most energy savings.
| City | Design Temp (99%) | Annual HDD (Base 65°F) | Climate Zone |
|---|---|---|---|
| Boise | 4–7°F | ~5,800–5,900 | 5B |
| Coeur d'Alene | 5–10°F | ~6,400–6,800 | 5B |
| Twin Falls | 1–5°F | ~6,100–6,400 | 5B |
| Pocatello | 1°F | ~6,500–6,800 | 6B |
| Idaho Falls | -2°F | ~7,200–7,600 | 6B |
✓ Best Candidates for Heat Pumps in Idaho
Homes currently heated with electric resistance (baseboard, ceiling cable, or electric forced-air) benefit the most — they qualify for utility rebates and will see the largest energy savings. Propane-heated rural homes without natural gas access are also strong candidates, given propane's high and volatile pricing. Gas-heated homes in Boise have the weakest economic case due to $0 in utility rebates from Idaho Power and low natural gas prices.
Dual-fuel systems (heat pump paired with a gas furnace) are particularly relevant for the Boise metro area, where Intermountain Gas Company serves the majority of homes. This configuration lets the heat pump handle heating efficiently down to approximately 25–35°F while the gas furnace covers the coldest periods.
Pairing a heat pump with a home battery system can help manage electricity costs during peak-rate hours, though Idaho's relatively low electricity rates make the payback longer than in states with higher rates or strong time-of-use pricing.
How to Apply for Idaho Heat Pump Rebates
Most Idaho utility rebates are claimed through the installing contractor or submitted directly to your utility after installation. The OEMR loan requires pre-approval.
Identify your electric utility
Rebate amounts and eligibility rules differ by utility. Check whether you are served by Idaho Power, Avista, Rocky Mountain Power, Idaho Falls Power, or an electric cooperative.
Choose a participating contractor
Idaho Power and Rocky Mountain Power require program-eligible contractors. Avista's midstream program requires a participating dealer. Confirm your contractor is enrolled in the program before scheduling installation.
Confirm equipment meets efficiency requirements
Each utility has specific HSPF2, SEER2, and COP minimums. Rocky Mountain Power requires equipment on the NEEP cold-climate heat pump list. Verify before purchasing.
Apply for the OEMR loan first (if using)
If you plan to use the OEMR State Energy Loan Program, apply and receive approval before installation begins. The loan requires a licensed Idaho contractor and a $100 application fee.
Submit your rebate application
For Avista, the rebate appears as a line-item discount on your contractor invoice. For Idaho Power and Rocky Mountain Power, submit the application after installation (within 90 days for Rocky Mountain Power). Idaho Falls Power processes rebates through their energy efficiency office.
What to Watch
IRA Funding Runway
The One Big Beautiful Bill Act rescinded unobligated IRA rebate funds. States that already signed grant agreements retain their allocations, but Idaho never reached that stage. The possibility of Idaho accessing IRA rebate funding in the future is effectively zero under current law.
Federal Credit Reinstatement
No legislation to reinstate Sections 25C or 25D has been introduced as of March 2026. A change in political control would be required for reinstatement to become plausible. Do not delay an installation expecting credits to return.
Utility Program Budgets
Utility rebate programs operate on annual budgets and can be modified or exhausted. Rocky Mountain Power's Idaho program was updated March 2, 2026. Check your utility's program page before purchasing to confirm current rebate amounts and availability.
Intermountain Gas Policy
Intermountain Gas, the dominant gas utility in the Boise metro, does not offer heat pump rebates and restricts heat pump use as a condition of its gas equipment rebates. Any change in this policy would significantly expand the addressable market for heat pumps in Idaho's largest metro area.
Frequently Asked Questions
What heat pump rebates are available in Idaho in 2026?
Idaho heat pump rebates in 2026 come exclusively from utility programs. Idaho Power offers $400–$800 for ducted air-source heat pumps replacing electric heat. Avista offers $300–$600 through its midstream program. Rocky Mountain Power offers $450–$650. Idaho Falls Power offers the most at $2,000–$2,400 for air-source systems. Federal tax credits (Sections 25C and 25D) expired December 31, 2025, and Idaho rejected IRA-funded HEAR and HOMES rebates.
Can I stack utility rebates with other incentives in Idaho?
Stacking options in Idaho are extremely limited. Because Idaho rejected IRA-funded HEAR and HOMES programs and federal tax credits expired, the only layer available is your utility rebate. You can combine a utility rebate with the OEMR State Energy Loan Program (3–7% interest, up to $30,000), but the loan reduces financing costs rather than the purchase price. There is no state tax credit for air-source heat pumps.
Why did Idaho reject IRA heat pump rebates?
In March 2025, Idaho’s Joint Finance-Appropriations Committee (JFAC) voted to zero out the Office of Energy and Mineral Resources’ request for $24.6 million in federal IRA funding to administer HEAR and HOMES rebate programs. The Republican legislative supermajority rejected the appropriation despite a request from Governor Brad Little. Idaho’s unspent allocation was returned to the federal government for redistribution to participating states.
Do Idaho Power heat pump rebates work for homes with gas heat?
Generally no. Idaho Power’s Heating and Cooling Efficiency Program rebates for ducted air-source heat pumps are only available when replacing electric heating systems such as electric baseboard, ceiling cable, or electric forced-air furnaces. Homes heated by natural gas from Intermountain Gas do not qualify for Idaho Power’s standard heat pump rebates, which is a significant limitation in the Boise metro area.
Are cold-climate heat pumps necessary in Idaho?
Yes. Idaho is entirely within IECC climate zones 5B and 6B. ASHRAE design temperatures range from 4–7°F in Boise to -2°F in Idaho Falls. Cold-climate heat pumps (ccASHP) that maintain at least 70% of rated capacity at 5°F are essential. Standard heat pumps would rely heavily on electric resistance backup below 15–20°F, eliminating most energy savings.
Sources
- Idaho Office of Energy and Mineral Resources — Programs & Incentives
- Idaho Power — Heating and Cooling Efficiency Program
- Avista Utilities — Idaho Single-Family Energy Rebates
- Rocky Mountain Power — Wattsmart Homes Idaho Heat Pumps
- Idaho Falls Power — Heating & Air Conditioning Rebates
- OEMR State Energy Loan Program
- Idaho Capital Sun — Legislature Kills Federal Home Energy Rebate Funding
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to Idaho homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Idaho's legislature rejected IRA rebate funding, and federal tax credits have expired — verify all program details before making purchasing decisions. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with your utility and contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)