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 of $900 on a ducted heat pump and up to $4,320 on geothermal, and MidAmerican Energy is the only major utility offering a cold-climate heat pump premium. Here's what's actually available.
Updated and sources last checked September 18, 2026
Rates and program availability may change after this date.
Illinois
Open
Federal tax credits expired. Utility rebates are the primary incentive: ComEd up to $2,000 ducted, Ameren Illinois up to $900 ducted, MidAmerican up to $713. Illinois HEAR has not been processed by DOE; HOMES is awarded and awaiting approval for a two-agency pilot.
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 ducted)
Central and southern Illinois. Applied at point of purchase through participating distributors. Geothermal runs $1,080–$4,320 by heating capacity.
MidAmerican Energy ($300–$713 ducted)
Western Illinois / Quad Cities. Only major IL utility with a cold-climate heat pump premium. Geothermal $900–$1,200.
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
USDOE allocated $263 million to the Illinois EPA Office of Energy for HEAR and HOMES together; the agency publishes no split between the two and no heat-pump dollar figure of its own. Illinois EPA states that its HEAR application has not yet been processed by USDOE or provided to Illinois EPA for administration or distribution. Under federal program rules, HEAR pays 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, all requiring existing electric equipment or new construction. Illinois is initially allocating 100% of funds to low-income households (≤80% AMI), with a minimum 10% to low-income multifamily that it expects to exceed. Retroactive rebates will not be offered; only program-approved projects qualify after launch.
Under DOE Program Notice 26-2 (effective May 29, 2026), replacing a gas, propane, or oil heating system no longer qualifies for HEAR, and a program that hasn't launched must align with this before it opens. Eligibility now turns on new construction or on the home's existing heating equipment already being electric — replacing electric resistance heat with a heat pump is the clearest qualifying case. Programs differ on whether replacing an existing heat pump counts, so confirm with yours before committing. The notice also requires a home to use rebates for insulation and air sealing before a heating or cooling upgrade, unless it already meets a state-specified level. Fuel-switching projects can still route to HOMES, which sets no fuel condition.
⚠ HOMES (Home Efficiency Rebates) — pilot phase, pending DOE approval
HOMES funding has been awarded to the Illinois EPA and is to be implemented by DCEO. The agency intends to launch a pilot with two Local Administering Agencies once all necessary approvals have been received from USDOE. Rebates will be based on modeled whole-home energy savings, with higher amounts for income-qualified households. Illinois is initially targeting 100% of funds to low-income households (≤80% AMI). Illinois EPA publishes no separate dollar figure for HOMES; the $263 million covers both programs.
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
Tonnage-tiered
Ducted amount scales with heating capacity
As of March 1, 2026, ComEd rebates are tiered by heating capacity (tonnage) rather than a flat amount. A ComEd Residential Heating and Cooling Trade Ally must perform the installation. Check ComEd's current program materials for application deadlines.
| Ducted system | Tier 1 | Tier 2 |
|---|---|---|
| Under 2.5 tons | $900 | $1,500 |
| 2.5 tons and up | $1,400 | $2,000 |
Add $75 to any tier with an ENERGY STAR smart thermostat. Tonnage is heating capacity ÷ 12,000. Ductless and mixed-use mini-splits: $500 under 1.5 tons, $1,000 at 1.5 tons and up, with the same $75 adder.
ComEd also pays $6,000 per home for geothermal including the ground loop, $1,200 per unit for a geothermal indoor replacement, and $750 per unit for a heat pump water heater with a First Hour Rate of 45 gal/hr or more. Both geothermal rebates require pre-approval and an EESP certified by the ICC and for geothermal work; self-installs do not qualify.
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 | $1,080–$4,320 | By heating capacity, ten tiers; +$500 with desuperheater |
Eligibility gate: the program fact sheet requires that the end user have an Energy Efficiency Programs Charge on their Ameren Illinois electric bill for the service point corresponding to the sale. That excludes customers inside Ameren's footprint who do not pay the rider. Limits are two per residential account on ducted, ductless, geothermal and ERV, and one on smart thermostats; in multifamily the limits apply per housing unit. The program does not incentivize ground-source installations that use a gas furnace, which forecloses dual-fuel geothermal.
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 | — |
MidAmerican caps prescriptive rebates at 70% of equipment cost, labor excluded, and limits two rebates per equipment type per installation address. Eligibility requires that MidAmerican deliver the primary electricity or natural gas to the equipment, in its Illinois service territory.
Equipment must be purchased, installed and operating between January 1 and December 31, 2026, and prescriptive applications are due within 90 days of the dealer invoice or by December 31, 2026, whichever comes first. Rebates run until approved funds are exhausted or that date, whichever comes first, first come first served. MidAmerican states that instant discounts cannot be combined with any other rebate or incentive program, including prescriptive rebates.
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; Tier 2, 2.5 tons and up |
| Realistic total | Up to $2,000 (Tier 2, 2.5 tons and up) |
This is a significant drop from 2025, when the same homeowner could stack a $2,000 federal credit on top of ComEd's then-flat $2,000 ducted rebate for up to $4,000 total — twice what the same project earns today.
Income-qualified homeowner (≤80% AMI)
| HEAR (heat pump) | Up to $8,000 | When launched; requires existing electric equipment or new construction |
| HEAR (panel + wiring) | Up to $6,500 | When launched; requires existing electric equipment or new construction |
| ComEd income-eligible | Enhanced | Higher than market rate |
| 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, plus a separate $4,000 for health and safety work — $24,000 in all. Income is not the only door: households that received LIHEAP in the last 12 months, or Title IV or XVI cash assistance in the preceding 12 months, or that are enrolled in listed HUD programs (CDBG, HOME, Public Housing, Vouchers, HUD-VASH, LIHTC) or USDA programs (Sections 521, 502, 533, 504), qualify categorically. PY2027 guidelines run $31,920 for one person and $66,000 for four, adding $11,360 per member above twelve; at sizes eight through twelve a second, lower column applies to state-funded work — 60% of State Median Income rather than 200% FPL.
LIHEAP is bill assistance rather than a heat pump rebate, but Illinois EPA lists it among the energy funding available now, and the same Help Illinois Families line answers for it.
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.
Almost 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 — HEAR requires existing electric equipment or new construction. 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, up to $1,000 for ductless systems, $750 for a heat pump water heater and $6,000 for geothermal. Ameren Illinois offers $900 for ducted, $630 for ductless and $1,080–$4,320 for geothermal by heating capacity. MidAmerican Energy offers $300–$563 standard and $563–$713 cold-climate for ducted, plus $900–$1,200 for geothermal. 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?
USDOE allocated $263 million to Illinois EPA for HEAR and HOMES together, and the agency publishes no split between them. HEAR is not operational: Illinois EPA says its application has not yet been processed by USDOE. Under federal program rules HEAR pays 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, all requiring existing electric equipment or new construction. Illinois is initially allocating 100% of funds to low-income households at or below 80% AMI, a minimum 10% of that to low-income multifamily, and 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)