Montana headline: The live money is NorthWestern Energy, up to $1,500 for a qualifying heat pump, through June 30, 2026. Buy a cold-climate model so it heats through the Montana winter. Cities like Bozeman and Missoula add local incentives. The state HEAR rebate (up to $8,000) is administered by the DEQ but not open yet. The federal 25C credit expired after December 31, 2025.
Montana: a cold state where the right heat pump matters
Unlike Hawaii, Montana genuinely needs heating, so a heat pump here has to perform in real cold. The good news is that modern cold-climate heat pumps do, and Montana’s main utility pays a solid rebate to install one.
NorthWestern Energy, which serves most of the state, pays up to $1,500 for a qualifying air-source or ground-source heat pump, valid through June 30, 2026.1 The exact amount depends on the system’s efficiency and how the backup heat is set up.
This is the Montana companion to our 2026 heat pump rebate guide.
Buy cold-climate, or it will not keep up
This is the most important choice in Montana. A standard heat pump loses capacity as it gets very cold. A cold-climate heat pump, listed on the NEEP cold-climate directory, is built to keep heating efficiently well below freezing.
What to insist on: a cold-climate rated model, usually paired with a backup heat source for the very coldest days. Ask your contractor to show the NEEP listing. This is not just about comfort: NorthWestern Energy’s rebate amount depends partly on the efficiency rating and backup configuration, so the right equipment also earns the bigger rebate.1
For more on choosing equipment for a cold climate, see cold-climate heat pumps.
What is live now: NorthWestern Energy and cities
| Source | Detail |
|---|---|
| NorthWestern Energy heat pump rebate | up to $1,500 (by efficiency and backup) |
| NorthWestern heat pump water heater | separate incentive |
| Available through | June 30, 2026 |
| City of Bozeman, Electrify Missoula | local incentives and financing |
NorthWestern Energy serves Billings, Bozeman, Butte, Helena, and Great Falls, among others.1 If you live in Bozeman or Missoula, check the city program too, since a local incentive can stack with the utility rebate.3
The state rebate: coming, not open
Montana’s HEAR and HOMES rebates, run by the State Energy Office within the Department of Environmental Quality, are not yet available to homeowners as of mid-2026.2
When HEAR opens, it will pay up to $8,000 for a heat pump for income-qualified households, on top of the NorthWestern Energy rebate. Watch the DEQ energy page for the launch.
The senior and income path: Weatherization
For a low-income Montana senior, this is the live option, and it matters more in a cold state. The Montana Weatherization Assistance Program provides income-qualified households free energy improvements such as insulation and air sealing, through local Human Resource Development Councils.4
Why it helps in Montana: sealing and insulation cut how hard your heating works through a long, cold winter, lowering bills now and letting a smaller, cheaper heat pump keep up. When the state HEAR rebate opens, a low-income household can add up to $8,000 for the heat pump itself.
Income limits for the state rebate (when it opens)
HEAR uses Area Median Income (AMI) at the county level.7 Below 80% AMI gets the highest tier (up to $8,000); 80 to 150% AMI gets 50% of project cost.
Approximate 80% AMI thresholds for a family of 4:
| County / region | 80% AMI (family of 4) |
|---|---|
| Yellowstone County (Billings) | ~$64,000 |
| Gallatin County (Bozeman) | ~$78,000 |
| Missoula County | ~$66,000 |
| Flathead County (Kalispell) | ~$62,000 |
| Rural Montana counties | ~$54,000 to $60,000 |
For a senior household on Social Security only, eligibility is usually clean in any Montana county.
Federal layer (2026)
The federal 25C Energy Efficient Home Improvement Credit, which paid up to $2,000 for a heat pump in prior years, expired for installs after December 31, 2025.5
What remains in 2026:
- 25D Residential Clean Energy Credit: 30% of solar cost through 2034. Applies if you pair the heat pump with solar.6
- 25C on insulation, panel upgrades, and audits: still active at smaller caps. Heat pumps are excluded.
See IRA 25C expired 2026 for the full federal picture.
Senior stack scenarios
Scenario A: Bozeman retired couple, NorthWestern Energy, cold-climate heat pump
- NorthWestern Energy heat pump rebate: up to $1,500
- City of Bozeman local incentive: check current amount
- Live today: $1,500 plus a possible city incentive. Add the state HEAR later if income-eligible.
Scenario B: Billings household, NorthWestern Energy
- NorthWestern Energy heat pump rebate: up to $1,500
- Live today: up to $1,500. Buy cold-climate rated so it earns the top rebate and heats all winter.
Scenario C: Low-income Missoula senior
- Montana Weatherization Assistance: free audit, sealing, insulation
- Electrify Missoula financing: low-cost loan option
- Live today: free efficiency work plus low-cost financing, with the $8,000 state rebate coming for the heat pump.
Verify your contractor first
A rebate is only as good as the contractor who installs the equipment. Montana registers contractors with the Department of Labor and Industry, and NorthWestern Energy requires a participating contractor.
Red flags to reject, and one is specific to Montana’s climate:
- A standard heat pump sold for a Montana winter. Insist on a cold-climate rated model.
- A guaranteed state rebate. The HEAR program is not open, so nobody can promise it.
- Door-to-door pitches and no Montana registration number on the quote.
- R-410A equipment for a 2026 install. That refrigerant no longer qualifies under the EPA rule.8
Verify a registration in about a minute with our Montana contractor license lookup guide.
- Insist on a cold-climate rated heat pump (NEEP listed)
- Claim the NorthWestern Energy rebate (up to $1,500, through June 30, 2026)
- In Bozeman or Missoula, check the city incentive and financing
- If income-qualified, apply for free Weatherization
- Watch the Montana DEQ energy page for the $8,000 state HEAR launch
What’s next
- Federal 2026 landscape: Heat pump rebates 2026
- Post-25C federal picture: IRA 25C expired 2026
- Cold-climate equipment: Cold-climate heat pumps
- Total cost math including stacks: Heat pump cost calculator
- Montana contractor check: Montana contractor license lookup
- Family in other states: Idaho, Minnesota
Citations
- Efficiency Rebates and Incentives for Homeowners (Heat Pumps). NorthWestern Energy, retrieved August 3, 2026. northwesternenergy.com rebates.
- Montana Home Energy Rebates (HEAR and HOMES) Status. Montana Department of Environmental Quality, State Energy Office, retrieved August 3, 2026. deq.mt.gov home energy rebates.
- Rebates and Incentives (Local Heat Pump Program). City of Bozeman, retrieved August 3, 2026. bozeman.net rebates.
- Montana Weatherization Assistance Program. Montana Department of Public Health and Human Services, retrieved August 3, 2026. dphhs.mt.gov weatherization.
- Energy Efficient Home Improvement Credit (25C). U.S. Internal Revenue Service. irs.gov 25C.
- Residential Clean Energy Credit (25D). U.S. Internal Revenue Service. irs.gov 25D.
- Income Limits Documentation System. U.S. Department of Housing and Urban Development, April 2026. huduser.gov income limits.
- Technology Transitions: Restrictions on Use of Certain HFCs. U.S. Environmental Protection Agency. epa.gov technology transitions.