Heat Pump Rebate 2026: How Much Can You Get?
Heat pump rebates in 2026 range from $2,000 to $14,000 depending on your household income and which programs you combine. The federal HEAR program alone offers up to $8,000 for a heat pump if your income falls below 80% of your area median income (AMI). Higher-income households still qualify for $2,000 through the 25C tax credit.
That is the short answer. But claiming the full amount requires understanding which programs stack, what the income thresholds actually look like, and where your state adds extra money on top.
Federal Heat Pump Rebates Available in 2026
Two federal programs fund heat pump installations right now. They work differently, and in many cases you can claim both.
| Program | Max Heat Pump Rebate | Income Requirement | Type |
|---|---|---|---|
| HEAR (Home Electrification Rebate) | $8,000 | Under 150% AMI | Point-of-sale discount |
| HOMES (Performance Rebate) | $4,000–$8,000 | Under 150% AMI for max | Performance-based |
| 25C Tax Credit | $2,000/year | No income limit | Tax credit (filed with return) |
The HEAR rebate is the big one. If your household income is below 80% of AMI, you get the full $8,000 toward a qualifying heat pump. Between 80% and 150% AMI, the rebate covers 50% of costs up to $8,000. Above 150% AMI, HEAR does not apply — but you still get the $2,000 tax credit under Section 25C of the IRA.
State-Level Heat Pump Rebates (2026)
Many states add their own incentives on top of the federal programs. These vary significantly, and new programs keep launching as IRA funds roll out. Here are the most significant ones currently active:
| State | Additional Rebate | Program | Notes |
|---|---|---|---|
| California | $3,000–$4,500 | TECH Clean California | Ducted/ductless mini-split |
| New York | $4,900–$19,000 | EmPower+/NYS Clean Heat | Income-qualified; includes weatherization |
| Massachusetts | $1,250–$10,000 | Mass Save | Tiered by income |
| Colorado | $3,000–$12,000 | CO HEAR + utility | Early HEAR rollout state |
| Maine | $2,000–$4,000 | Efficiency Maine | Plus $2,000 for income-eligible |
| Oregon | $3,000 | Energy Trust of Oregon | Covers ducted and ductless |
| Vermont | $4,000+ | Efficiency Vermont + HEAR | Cold-climate models prioritized |
| Connecticut | Up to $15,000 | Energize CT + HEAR | Income-qualified maximum |
Not seeing your state? Use our state rebate finder to check what is available where you live.
What Heat Pumps Qualify for the 2026 Rebate?
Not every heat pump gets you the full rebate. The equipment must meet specific efficiency standards set by the DOE:
- Air-source heat pumps — Must meet ENERGY STAR requirements (SEER2 ≥ 15.2, HSPF2 ≥ 7.8 for split systems)
- Ductless mini-splits — Must be ENERGY STAR certified; qualifies under both HEAR and 25C
- Ground-source (geothermal) heat pumps — Qualify for a separate 30% tax credit under Section 48 (no cap) plus state rebates
- Heat pump water heaters — Separate $1,750 HEAR rebate; $2,000 annual 25C credit
Brands that commonly qualify include Mitsubishi, Daikin, Carrier, Trane, Lennox, and Bosch. Your installer should confirm AHRI certification before you commit.
Income Limits: Do You Qualify for the Full Rebate?
The income thresholds for HEAR use Area Median Income (AMI), not a fixed national number. That means the cutoff varies by county. A family of four earning $80,000 might qualify for the full $8,000 in one state and only the partial rebate in another.
Here is a rough guide for a household of four:
| AMI Level | Approx. Income (Family of 4) | HEAR Heat Pump Rebate | 25C Tax Credit |
|---|---|---|---|
| Under 80% AMI | Under $60,000–$85,000 | $8,000 (100% of cost) | Yes ($2,000) |
| 80–150% AMI | $60,000–$160,000 | 50% of cost, up to $8,000 | Yes ($2,000) |
| Above 150% AMI | Above $160,000 | Not eligible | Yes ($2,000) |
Check your exact AMI threshold using our heat pump rebate calculator — it pulls county-level data so the number is specific to your location.
How to Apply for a Heat Pump Rebate in 2026
The application process depends on which program you use. Here is what to expect:
- Check your eligibility. Use your state's HEAR portal or our calculator to confirm your income tier and available rebates.
- Get quotes from qualified contractors. The installer must be registered with your state's HEAR/HOMES program. Ask for the rebate to be applied as a point-of-sale discount where available.
- Choose a qualifying heat pump. Make sure the model is ENERGY STAR certified and meets DOE efficiency minimums.
- Submit the application. In most states, the contractor handles HEAR paperwork. For HOMES, you may need a pre- and post-installation energy assessment.
- Claim 25C on your tax return. File IRS Form 5695 with your 2026 taxes. Keep the manufacturer certification statement and receipts.
Timeline: HEAR rebates are typically processed within 4–8 weeks. The 25C tax credit applies when you file your annual return.
Can You Stack Heat Pump Rebates?
Yes — and you should. The IRA was designed so federal programs complement each other and state programs add on top. A common stacking scenario:
- HEAR rebate: $8,000
- State rebate (e.g., Mass Save): $1,250
- Utility rebate: $500
- 25C tax credit: $2,000
- Total: $11,750 toward a $12,000–$18,000 installation
The one rule: the total rebates cannot exceed the project cost. You cannot profit from rebates (though some low-income households get close to $0 out-of-pocket).
Read our full rebate stacking guide for detailed strategies.
Heat Pump Rebate vs. Tax Credit: What Is the Difference?
A rebate reduces your upfront cost — it is applied at the time of purchase or shortly after. A tax credit reduces the tax you owe when you file your return. The HEAR rebate is a true rebate (instant discount). The 25C benefit is a tax credit (you wait until tax season). Both are non-refundable for most filers, meaning they reduce what you owe but don't generate a refund beyond $0.