Heat Pump Rebates & Tax Credits by State (2026)
Federal, state, and utility incentives available for heat pump installation. Every state qualifies for at least $2,000 through the federal 25C tax credit.
Average Total Incentives
$2,000
Highest Incentive State
Alabama
Minimum (All States)
$2,000
Total Rebates by State (Sorted by Total)
| State | Federal | State | Utility | Total |
|---|---|---|---|---|
| Alabama | $2,000 | $0 | $0 | $2,000 |
| Alaska | $2,000 | $0 | $0 | $2,000 |
| Arizona | $2,000 | $0 | $0 | $2,000 |
| Arkansas | $2,000 | $0 | $0 | $2,000 |
| California | $2,000 | $0 | $0 | $2,000 |
| Colorado | $2,000 | $0 | $0 | $2,000 |
| Connecticut | $2,000 | $0 | $0 | $2,000 |
| Delaware | $2,000 | $0 | $0 | $2,000 |
| District of Columbia | $2,000 | $0 | $0 | $2,000 |
| Florida | $2,000 | $0 | $0 | $2,000 |
| Georgia | $2,000 | $0 | $0 | $2,000 |
| Hawaii | $2,000 | $0 | $0 | $2,000 |
| Idaho | $2,000 | $0 | $0 | $2,000 |
| Illinois | $2,000 | $0 | $0 | $2,000 |
| Indiana | $2,000 | $0 | $0 | $2,000 |
| Iowa | $2,000 | $0 | $0 | $2,000 |
| Kansas | $2,000 | $0 | $0 | $2,000 |
| Kentucky | $2,000 | $0 | $0 | $2,000 |
| Louisiana | $2,000 | $0 | $0 | $2,000 |
| Maine | $2,000 | $0 | $0 | $2,000 |
Total Available Incentives by State
Map shows total available heat pump incentives by state.
All States: Rebate Breakdown
| State | Federal | State | Utility | Total |
|---|---|---|---|---|
| Alabama | $2,000 | $0 | $0 | $2,000 |
| Alaska | $2,000 | $0 | $0 | $2,000 |
| Arizona | $2,000 | $0 | $0 | $2,000 |
| Arkansas | $2,000 | $0 | $0 | $2,000 |
| California | $2,000 | $0 | $0 | $2,000 |
| Colorado | $2,000 | $0 | $0 | $2,000 |
| Connecticut | $2,000 | $0 | $0 | $2,000 |
| Delaware | $2,000 | $0 | $0 | $2,000 |
| District of Columbia | $2,000 | $0 | $0 | $2,000 |
| Florida | $2,000 | $0 | $0 | $2,000 |
| Georgia | $2,000 | $0 | $0 | $2,000 |
| Hawaii | $2,000 | $0 | $0 | $2,000 |
| Idaho | $2,000 | $0 | $0 | $2,000 |
| Illinois | $2,000 | $0 | $0 | $2,000 |
| Indiana | $2,000 | $0 | $0 | $2,000 |
| Iowa | $2,000 | $0 | $0 | $2,000 |
| Kansas | $2,000 | $0 | $0 | $2,000 |
| Kentucky | $2,000 | $0 | $0 | $2,000 |
| Louisiana | $2,000 | $0 | $0 | $2,000 |
| Maine | $2,000 | $0 | $0 | $2,000 |
| Maryland | $2,000 | $0 | $0 | $2,000 |
| Massachusetts | $2,000 | $0 | $0 | $2,000 |
| Michigan | $2,000 | $0 | $0 | $2,000 |
| Minnesota | $2,000 | $0 | $0 | $2,000 |
| Mississippi | $2,000 | $0 | $0 | $2,000 |
| Missouri | $2,000 | $0 | $0 | $2,000 |
| Montana | $2,000 | $0 | $0 | $2,000 |
| Nebraska | $2,000 | $0 | $0 | $2,000 |
| Nevada | $2,000 | $0 | $0 | $2,000 |
| New Hampshire | $2,000 | $0 | $0 | $2,000 |
| New Jersey | $2,000 | $0 | $0 | $2,000 |
| New Mexico | $2,000 | $0 | $0 | $2,000 |
| New York | $2,000 | $0 | $0 | $2,000 |
| North Carolina | $2,000 | $0 | $0 | $2,000 |
| North Dakota | $2,000 | $0 | $0 | $2,000 |
| Ohio | $2,000 | $0 | $0 | $2,000 |
| Oklahoma | $2,000 | $0 | $0 | $2,000 |
| Oregon | $2,000 | $0 | $0 | $2,000 |
| Pennsylvania | $2,000 | $0 | $0 | $2,000 |
| Rhode Island | $2,000 | $0 | $0 | $2,000 |
| South Carolina | $2,000 | $0 | $0 | $2,000 |
| South Dakota | $2,000 | $0 | $0 | $2,000 |
| Tennessee | $2,000 | $0 | $0 | $2,000 |
| Texas | $2,000 | $0 | $0 | $2,000 |
| Utah | $2,000 | $0 | $0 | $2,000 |
| Vermont | $2,000 | $0 | $0 | $2,000 |
| Virginia | $2,000 | $0 | $0 | $2,000 |
| Washington | $2,000 | $0 | $0 | $2,000 |
| West Virginia | $2,000 | $0 | $0 | $2,000 |
| Wisconsin | $2,000 | $0 | $0 | $2,000 |
| Wyoming | $2,000 | $0 | $0 | $2,000 |
Stacking Rebates: How to Maximize Your Heat Pump Incentives
The passage of the Inflation Reduction Act in 2022 fundamentally changed the economics of heat pump adoption in the United States. For the first time, households across every state have access to substantial federal incentives that can offset a significant portion of heat pump installation costs—often thousands of dollars.
The Federal 25C Tax Credit
The cornerstone of federal heat pump incentives is the Section 25C Energy Efficient Home Improvement Credit. Available through 2032, this credit covers 30% of the cost of a qualifying heat pump, up to $2,000 per year. Unlike the old credit, which was a lifetime limit, the new 25C credit resets annually, allowing homeowners to claim it for additional equipment over multiple years.
HOMES and HEEHRA Rebates
In addition to the tax credit, the IRA created two rebate programs administered through states: the HOMES (Home Owner Managing Energy Savings) rebate program and the HEEHRA (High-Efficiency Electric Home Rebate Act) program. HEEHRA provides point-of-sale rebates of up to $8,000 for heat pumps for income-qualified households, plus additional amounts for electrical panel upgrades and other improvements. HOMES provides rebates based on projected energy savings.
State and Utility Programs
Many states have layered their own incentive programs on top of federal programs. Massachusetts, Vermont, Connecticut, and several other Northeast states with high energy costs and aggressive electrification goals offer some of the most generous additional rebates. Utility companies in some regions also offer incentives, particularly when heat pump adoption helps them manage demand.
How These Numbers Are Calculated
The incentive data shown here is sourced from the Rewiring America incentives database, which tracks programs across representative ZIP codes in each state. The federal amount reflects the estimated value of the 25C credit (minimum $2,000) plus any applicable HOMES/HEEHRA rebates. State and utility amounts reflect averages across programs available in that state.
Actual incentive amounts vary by household income, location, equipment specifications, and program availability. Use the WattFax calculator to get a personalized incentive estimate for your specific situation.
See what rebates you qualify for.
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