The short version: The federal IRA 25C tax credit expired December 31, 2025. State HEEHRA (Home Electrification and Appliance Rebates) programs are still active, and stacked with utility rebates they reach up to $14,000 in Massachusetts, $8,000+ in California and New York. Find your state for the actual numbers.
What changed in 2026
The big change: the federal IRA 25C tax credit for residential heat pumps expired December 31, 2025. Installs in 2026 or later don’t qualify for the federal income tax credit.2
What’s still active: state-administered HEEHRA / HEAR programs (using federal funds passed through to states), individual utility rebates, state tax credits in some states, and state-specific cold-climate or income-based programs.
The result is wider variation between states than at any point in the last decade. Massachusetts and California still have generous programs. Texas and Florida have much less.
The federal HEEHRA / HEAR program
The Home Electrification and Appliance Rebates (HEEHRA, sometimes also called HEAR) program is federally funded but state-administered.5
Eligibility:
- Households at ≤80% Area Median Income (AMI): up to 100 percent of project costs covered, capped at $8,000 for a heat pump.
- Households at 80-150% AMI: up to 50 percent of project costs, capped at $4,000.
- Households above 150% AMI: not eligible for HEEHRA; utility rebates still apply.
Each state has its own program timeline. Some states launched in 2024, some in 2025, some still onboarding in 2026. Some states have already exhausted their initial federal allocation.
State-by-state picture
The strongest combined stacks in 2026:
| State | Max combined rebate | Why so high |
|---|---|---|
| Massachusetts | Up to $14,000 | Mass Save + HEEHRA + state credit |
| California | Up to $8,000+ | HEEHRA + TECH Clean California |
| New York | $5K state credit + HEEHRA + utility | NYSERDA-administered |
| Maine | $4,000-$10,000 | Efficiency Maine generous |
| Minnesota | Up to $10,500 | Cold-climate bonus |
| Vermont, NH, RI | $3,000-$6,000 | Strong utility programs |
| Illinois (ComEd area) | $2,000 utility + HEEHRA | ComEd $2K |
| New Jersey | $3,000-$6,000 | NJ Clean Energy + HEEHRA |
| Oregon, Washington | $3,000-$6,000 | State energy office programs |
| Colorado | $2,000-$5,000 | Xcel + state |
| Texas | Up to $4,000 | TX HEEHRA |
| Arizona, Florida | $1,000-$3,000 | Limited utility programs |
For your state’s specifics, see the state pages linked from the Heat Pump Rebates hub.
Heat pump cost without rebates
Realistic 2026 install costs for a typical 3-ton (36,000 BTU) air-source heat pump:
| Tier | Cost installed | Notes |
|---|---|---|
| Standard efficiency air-source | $8,000-$15,000 | Most common install |
| Cold-climate air-source | $12,000-$22,000 | Required in northern states |
| Ducted whole-home | $15,000-$30,000 | Including ductwork modification |
| Ductless mini-split | $4,500-$9,000 | Per zone; 1-3 zones typical |
| Ground-source (geothermal) | $20,000-$45,000 | Higher upfront, lower operating |
The wide ranges reflect home size, existing ductwork condition, electrical panel capacity (most heat pumps need a 200-amp service), and labor rates. Get three quotes for any major install.3
Cold-climate heat pumps
If you’re in a state where winter temperatures regularly drop below 5°F, you need a cold-climate certified heat pump. The Northeast Energy Efficiency Partnerships (NEEP) maintains the official list.4
Top brands appearing on the NEEP cold-climate list: Mitsubishi Electric, Daikin, Fujitsu, Bosch, Carrier (specific models). Each model has a published heating capacity at 5°F, -5°F, and -15°F outdoor temperatures.
For full details on cold-climate selection, see cold climate heat pumps: do they work below 0°F?.
How to maximize rebates
The actual process:
- Confirm your AMI tier for HEEHRA eligibility. State HEEHRA pages have lookup tables.
- Identify your utility’s rebate program, most major US utilities have heat pump rebates (Mass Save, ComEd, Eversource, PG&E, etc.).
- Confirm equipment eligibility, both HEEHRA and utility rebates require AHRI-certified, ENERGY STAR Most Efficient, or NEEP cold-climate listed equipment.
- Confirm contractor eligibility, most state HEEHRA programs require state-approved contractors.
- Get three written quotes with rebate amounts itemized.
- Time the install correctly, some rebates require pre-approval before install begins.
The order matters. Don’t sign a contract before confirming rebate eligibility; some homeowners discover their contractor isn’t on the approved list after they’ve already paid a deposit.
What heat pump shoppers commonly miss
- Electrical panel capacity: many older homes have 100-amp service. A whole-home heat pump usually requires 200-amp service. Panel upgrade adds $2,000-$4,000.
- Ductwork capacity: heat pumps move more air at lower temperatures than gas furnaces. Existing ductwork sometimes needs modification.
- Backup heat: in coldest climates, a heat pump alone may not satisfy peak heating load. A small electric strip or gas furnace as backup is normal.
- Sizing matters: oversized heat pumps short-cycle and don’t dehumidify well. Demand a Manual J calculation from the contractor.
- Permitting: most heat pump installs require a permit. Confirm the contractor pulls it.
What to do next
If you’re researching: identify your state on the Heat Pump Rebates hub and read your state-specific guide.
If you’re ready to install: get three quotes from state-approved contractors with itemized rebate amounts. Confirm eligibility before signing.
If you’re uncertain whether a heat pump fits your home: see heat pump vs gas furnace: 10-year cost for a senior homeowner for the cost comparison and cold climate heat pumps for the climate question.
For state-by-state programs, see your state in the heat pump rebates hub.
- IRA 25C federal tax credit expired Dec 31, 2025.
- HEEHRA / HEAR state programs still active. Income-tier-based rebates up to $8,000.
- Combined stacks reach $14,000 in MA, $8,000+ in CA and NY.
- Get three quotes, verify contractor and equipment eligibility before signing.