If you have been searching for a heat pump tax credit in 2026 and finding conflicting answers, you are not imagining it. The federal credit changed, but state, whole-home and utility incentives may still reduce the cost of a qualifying project.
QUICK ANSWER
The federal Section 25C heat pump credit is not available for property placed in service after December 31, 2025. A qualifying system placed in service in 2025 may still be claimed on a 2025 federal return. In 2026, check state-administered Home Energy Rebates and local utility incentives before buying.
The $2,000 Federal Credit Ended for 2026 Installations
Section 25C, the Energy Efficient Home Improvement Credit, previously allowed homeowners to claim 30% of qualifying heat pump costs, subject to a separate annual limit of $2,000. Under current federal law, the credit is not allowed for property placed in service after December 31, 2025.
If a qualifying heat pump was placed in service during 2025, it may still be claimed on the 2025 federal return using IRS Form 5695. The IRS instructions require the applicable qualified manufacturer identification information for specified property placed in service in 2025.
What May Still Be Available in 2026
Two federally funded programs continue to be administered by participating states and territories. Availability, eligibility and application procedures vary by location.
High-Efficiency Electric Home Rebates
The HEEHR program can provide point-of-sale rebates for income-qualified households. Federal program limits include up to $8,000 for eligible heat pump costs, but each state controls launch timing, funding and enrollment rules.
HOMES Rebates
The HOMES program supports qualifying whole-home energy upgrades based on modeled or measured energy savings. It is not simply a rebate for one appliance, and state program requirements differ.
The U.S. Department of Energy maintains the official Home Energy Rebates program page and directs consumers to their state or territory energy office for current availability.
Why Your Location Matters
Funding can change quickly. For example, California reported that Phase I single-family HEEHRA reservations became fully reserved statewide in February 2026, with later requests placed on a waitlist. Approved reservations continue to be processed, while future availability depends on program updates.
Utility incentives can also be available independently of federal tax credits. The amount and equipment rules depend on the utility service territory, installation date and current funding. Always confirm the program directly before making a purchase decision.
How to Check Your Options Before Buying
- Confirm whether your state or territory has an active Home Energy Rebates program.
- Ask whether household income verification or advance approval is required.
- Verify that the contractor is enrolled if the program requires participating contractors.
- Confirm that the exact heat pump model and complete installation meet program requirements.
- Check your electric utility for separate rebates and current funding.
- Save invoices, model information and manufacturer identification documents for your records.
Do not treat an advertised maximum as a guaranteed rebate
Eligibility, reservation status, approved equipment, contractor participation and available funds all matter. Obtain written confirmation from the program administrator or utility.
Frequently Asked Questions
Is there still a federal tax credit for heat pumps installed in 2026?
No. The Section 25C Energy Efficient Home Improvement Credit is not allowed for property placed in service after December 31, 2025.
Do Home Energy Rebates still exist in 2026?
Yes, but they are administered by participating states and territories. Program availability, income requirements, eligible equipment and remaining funds vary by location.
How much can a household save on a heat pump in 2026?
There is no single nationwide amount. Income-qualified households may be eligible for state-administered HEEHR rebates, while HOMES and utility programs may provide additional savings under their own rules.
Can I claim the old credit for a heat pump installed in 2025?
A qualifying heat pump placed in service in 2025 may be claimed on the 2025 federal return using Form 5695, subject to IRS eligibility and identification requirements.
Check Options for Your Project
Incentives can change by address and funding cycle. Contact ZERO HVAC for product guidance, then verify eligibility directly with the relevant state program or utility.
Last reviewed September 24, 2026. This article provides general information and is not tax, legal or financial advice. Consult the IRS, your state program administrator, your utility or a qualified tax professional for advice specific to your situation.
Official sources: IRS 2025 Form 5695 instructions · IRS home energy credit expirations · DOE Home Energy Rebates · California Energy Commission