Illinois Heat Pump Rebates & Incentives (2026)
With federal tax credits gone and state IRA rebate programs still pending launch, utility rebates are the main financial incentive available to Illinois homeowners in 2026. ComEd customers in the Chicago area can access up to $2,000, Ameren Illinois serves central and southern Illinois with instant discounts up to $900, and MidAmerican Energy is the only major utility offering a cold-climate heat pump premium. Here's what's actually available.
Last verified: March 22, 2026
Rates and program availability may change after this date.
Illinois
Open
Federal tax credits expired. Utility rebates up to $2,000 are available through ComEd, Ameren Illinois, MidAmerican Energy, and some municipal utilities. Illinois HEAR and HOMES rebates are still pending launch.
The short version
ComEd rebates (up to $2,000)
Ducted heat pumps in Chicago metro and northern Illinois. Up to $1,000 for ductless mini-splits.
Ameren Illinois instant discounts ($900)
Central and southern Illinois. Applied at point of purchase through participating distributors.
MidAmerican Energy ($300–$713)
Western Illinois / Quad Cities. Only major IL utility with a cold-climate heat pump premium.
Federal tax credits (25C and 25D)
Both expired December 31, 2025 under the One Big Beautiful Bill Act. Equipment installed in 2026 does not qualify even if purchased in 2025.
Illinois HEAR & HOMES ($263M allocated)
Not yet operational. DOE approval not finalized. Initially targeting 100% of funds to households ≤80% AMI.
Federal tax credits — gone for 2026
Both credits expired December 31, 2025
The 25C (Energy Efficient Home Improvement Credit, up to $2,000 for heat pumps) and 25D (Residential Clean Energy Credit, 30% for geothermal) were both terminated by the One Big Beautiful Bill Act. Equipment purchased in 2025 but installed in 2026 does not qualify — the IRS defines eligibility by when installation is completed, not when equipment is purchased. Homeowners who completed qualifying 25D installations (geothermal) by December 31, 2025 may still carry forward unused credit to future tax years.
Sources: IRS — 25C · IRS — OBBB FAQs
State programs — funded but pending
⚠ HEAR (Home Electrification and Appliance Rebates) — not yet operational
Illinois received $131.5 million for HEAR. The Illinois EPA administers it, but DOE approval has not been finalized. When launched, HEAR will offer up to $8,000 for a heat pump, up to $1,750 for a heat pump water heater, and up to $14,000 total per household. Illinois is initially allocating 100% of HEAR funds to low-income households (≤80% AMI), with rebates covering up to 100% of costs. Retroactive rebates will not be offered.
⚠ HOMES (Home Efficiency Rebates) — pilot phase, pending DOE approval
Illinois received $132 million for HOMES, administered by DCEO through local agencies. Final consumer-facing rebate pathways and pilot details are not yet fully live. Rebates will be based on modeled whole-home energy savings, with higher amounts for income-qualified households. Illinois is initially targeting 100% of HOMES funds to low-income households (≤80% AMI).
State tax credits: Illinois does not currently offer a state income tax credit for residential heat pumps.
Financing: The Illinois Energy Loan Program offers on-bill financing for heat pumps at 7.74% fixed APR with terms of 1–10 years. This is not a subsidized low-interest program.
Sources: Illinois EPA — Energy Rebates · ILSAG IRA Update (July 2025)
Utility rebates — this is where the money is
Your electric utility determines which rebate you can access. Gas utilities (Nicor Gas, Peoples Gas, North Shore Gas) do not offer electric heat pump rebates.
ComEd — Chicago metro & northern Illinois
Up to $2,000
Ducted heat pump
Up to $1,000
Ductless mini-split
Up to $2,075
With smart thermostat
Rebates are tiered by efficiency — higher SEER2 and HSPF2 ratings earn larger rebates. A ComEd Residential Heating and Cooling Trade Ally must perform the installation. Check ComEd's current program materials for application deadlines.
Income-eligible customers can access enhanced rebates and whole-home electrification improvements (including heat pump water heaters) through ComEd's Income Eligible Solutions program.
Ameren Illinois — central & southern Illinois
Ameren offers instant discounts applied at the point of purchase through participating distributors — no separate rebate application needed:
| Equipment | Discount | Notes |
|---|---|---|
| Ducted ASHP | $900 | ≥15.2 SEER2, ≥8.1 HSPF2; limit 2/acct |
| Ductless mini-split | $630 | ≥16 SEER2, ≥8.55 HSPF2; limit 2/acct |
| HPWH (installed) | $1,150 | Through Program Ally contractor |
| HPWH (self-install) | $800 | Online rebate or Lowe's/HD coupon |
| Geothermal | $1,350–$5,400 | +$500 with desuperheater |
Income-qualified customers can receive up to 80% cost coverage through the Home Efficiency Income Qualified Program, including heating and cooling upgrades.
MidAmerican Energy — western Illinois (Quad Cities)
MidAmerican is the only major Illinois utility with an explicit cold-climate heat pump premium:
| Equipment | Standard | Cold-Climate |
|---|---|---|
| Air-source HP | $300–$563 | $563–$713 |
| Ductless mini-split | $375 | $525 |
| Geothermal | $900–$1,200 | — |
| HPWH | $225 | — |
Rebates capped at 70% of equipment cost. Limit 2 per equipment type per address.
Nicor Gas · Peoples Gas · North Shore Gas — no electric heat pump rebates
Illinois's three largest gas utilities do not offer rebates for electric heat pumps. Their programs support only gas equipment. Peoples Gas and North Shore Gas offer a niche rebate for gas absorption heat pumps ($575–$700), but that's a gas-fired technology. If you have both ComEd and Nicor Gas service, your heat pump rebate comes from ComEd.
Municipal utilities
- Springfield CWLP: $200 per ton of cooling capacity, plus a 9% Electric Heat Rate Discount on your bill from mid-September through mid-May
- Naperville Electric: $500–$600 depending on efficiency tier (limit 1, until funding runs out)
- Rural electric co-ops (EnerStar, Corn Belt, MJM, Eastern Illini): up to $700–$1,800 depending on co-op — check with yours directly
How programs stack
Utility rebates can stack with HEAR or HOMES rebates once those programs launch. HEAR and HOMES cannot be combined on the same measure but can cover different measures on the same project. Total rebates cannot exceed total project cost.
Median-income homeowner (above 150% AMI)
For a typical whole-home ducted cold-climate heat pump at $15,000–$20,000:
| Federal 25C | $0 | Expired |
| HEAR rebate | $0 | Not eligible above 150% AMI |
| ComEd utility rebate | Up to $2,000 | Available now |
| Realistic total | $1,400–$2,000 |
This is a significant drop from 2025, when the same homeowner could stack a $2,000 federal credit on top of the utility rebate for $3,400–$4,000 total.
Income-qualified homeowner (≤80% AMI)
| HEAR (heat pump) | Up to $8,000 | When launched |
| HEAR (panel + wiring) | Up to $6,500 | When launched |
| ComEd income-eligible | ~$2,000+ | Available now |
| Potential total | Up to ~$16,000 | Subject to cost cap |
Available now: Green Homes Chicago covers up to $50,000 in free upgrades for eligible Chicago homeowners (≤80% AMI, owner-occupied 1–4 units). The Illinois Home Weatherization Assistance Program (IHWAP) provides up to $20,000 in free improvements including HVAC replacement for households at or below 200% of the Federal Poverty Level.
Climate context — cold-climate heat pumps are essential
Chicago
−5°F
Design temp · Zone 5A
Springfield
−3°F
Design temp · Zone 5A
Carbondale
~5°F
Design temp · Zone 4A
Cold-climate-rated heat pumps — meeting ENERGY STAR's specification of COP ≥1.75 at 5°F — are essential for reliable performance in most of Illinois. MidAmerican Energy is currently the only major Illinois utility offering a cold-climate premium in its rebate tiers.
Roughly three-quarters of Illinois households heat with natural gas, making most heat pump installations a gas-to-electric fuel switch. That means potentially eliminating your gas service charges but possibly requiring an electrical panel upgrade. Gas utilities offer no support for this transition — your electric utility is where the rebates are. Considering pairing a heat pump with battery storage? See our guide to whether home batteries are worth it in 2026.
Local programs
Chicago — Green Homes Chicago
Chicago has periodically reopened Green Homes Chicago, which can cover up to $50,000 in free energy upgrades per home, including cold-climate heat pump systems, weatherization, and high-efficiency appliances. Administered by the Department of Housing with Elevate and Zero Homes. Eligibility: owner-occupied 1–4 unit properties, household income ≤80% AMI. Check the city website for current enrollment status ↗
Evanston — Sustain Evanston
Grants up to $25,000 per business for sustainability projects including heat pumps. Evanston also passed the Healthy Buildings Ordinance in 2025, the first building performance standard in Illinois.
Other cities
Cook County has no direct residential heat pump rebate. Springfield, Peoria, Champaign, and Rockford have no city-specific programs — residents rely on their utility programs and Springfield residents benefit from CWLP.
How to apply
Identify your electric utility
ComEd (Chicago metro / northern IL), Ameren Illinois (central / southern IL), or MidAmerican Energy (Quad Cities). Your electric utility — not your gas utility — is where heat pump rebates come from.
ComEd: find a Trade Ally
ComEd requires installation by a Residential Heating and Cooling Trade Ally. Visit comed.com or call 855-433-2700.
Ameren: buy through a participating distributor
The instant discount is applied at checkout — no separate application. For the income-qualified program, visit amerenillinoissavings.com.
MidAmerican: apply online or by mail
Visit midamericanenergy.com after purchase.
Income-qualified: IHWAP or Green Homes Chicago
Contact your local Community Action Agency or call 1-833-711-0374. Email: communityassist@illinois.gov.
New to heat pumps? Start with our overview to understand how they work and whether one makes sense for your home.
What to watch in 2026
HEAR and HOMES launch
Illinois's $263 million in IRA rebate funding remains pending. When these programs go live, income-qualified homeowners could access up to $8,000–$16,000 in additional rebates. Monitor the Illinois EPA Energy Rebates page for updates.
Utility program continuity
The approved 2026–2029 utility energy efficiency plans represent nearly $2.79 billion in total investment with expanded electrification focus. Utility heat pump rebates are likely to continue and potentially increase through this period.
Frequently asked questions
What heat pump rebates are available in Illinois in 2026?
Illinois heat pump rebates in 2026 come from your electric utility. ComEd offers up to $2,000 for ducted heat pumps and up to $1,000 for ductless systems. Ameren Illinois offers $900 for ducted and $630 for ductless. MidAmerican Energy offers $300–$713 with a cold-climate premium. The federal 25C tax credit expired December 31, 2025. Illinois HEAR and HOMES rebate programs have not yet launched.
Is there a federal tax credit for heat pumps in Illinois in 2026?
No. The federal Section 25C Energy Efficient Home Improvement Credit expired December 31, 2025 under the One Big Beautiful Bill Act. Equipment purchased in 2025 but installed in 2026 does not qualify. There is no federal tax credit for heat pump installations in 2026.
What is the status of Illinois HEAR rebates?
Illinois received $131.5 million for the HEAR program (Home Electrification and Appliance Rebates), but as of March 2026 the program is not operational. DOE approval has not been finalized. Illinois is initially allocating 100% of HEAR funds to low-income households at or below 80% AMI. Retroactive rebates will not be offered.
Do Nicor Gas or Peoples Gas offer heat pump rebates?
No. Illinois gas utilities — Nicor Gas, Peoples Gas, and North Shore Gas — do not offer rebates for electric heat pumps. Their programs support only gas equipment. If you have both ComEd and Nicor Gas service, your heat pump rebate comes from ComEd.
Can I stack utility rebates with HEAR or HOMES rebates in Illinois?
Yes, when those programs launch. Utility rebates can stack with HEAR or HOMES rebates. HEAR and HOMES cannot be combined on the same measure, but can cover different measures on the same project. Total rebates cannot exceed total project cost.
Do I need a cold-climate heat pump in Illinois?
Yes. Chicago's ASHRAE winter design temperature is −5°F. Cold-climate-rated heat pumps — meeting ENERGY STAR's Cold Climate specification of COP ≥1.75 at 5°F — are essential for reliable heating performance in most of Illinois.
Disclaimer: This page covers the main utility and state heat pump incentives available to Illinois homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Illinois has additional local, co-op, and municipal programs that may apply in your area. 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)