whatisaheatpump.comFind a local pro
Rebates

Get every rebate dollar you qualify for

A plain-English breakdown of the major federal, state, and utility programs, what each is actually worth, and the eligibility rules that determine whether you qualify.

Money on the table

Rebates and credits change the math completely

Federal, state, and utility programs stack. Between them, a $16,000 install can land closer to $9,000, which is usually the difference between a heat pump being a stretch and being obvious.

Check programs in my ZIP
Federal 25C tax credit
30% of project cost for qualifying heat pumps, claimed on your return.
up to $2,000
State point-of-sale rebates
Income-qualified programs administered state by state; amounts and status vary.
up to $8,000
Utility incentives
Per-ton or flat rebates from your electric utility, often with a contractor requirement.
$300 – $3,000

Program rules and funding change. Always confirm current terms before signing a contract.

Four programs worth checking, in detail

Program names and amounts vary by state and utility. These are representative examples, confirm current terms and your own eligibility before signing a contract.

HEEHRA
Up to $8,000
Home Electrification & Appliance Rebates
A federally funded, state-administered, income-based point-of-sale rebate for heat pumps and heat-pump water heaters. Usually the largest single incentive available, but eligibility depends on household income relative to your area's median.
TECH Clean California
$1,000–$3,000+
Statewide heat pump incentive
Per-unit incentives for qualifying heat pump HVAC and water-heating systems in California, typically paid through a participating contractor rather than claimed directly by the homeowner.
Federal 25C
Up to $2,000/yr
Energy Efficient Home Improvement Tax Credit
A federal income-tax credit covering 30% of the cost of qualifying heat pumps and high-efficiency HVAC equipment, claimed on your tax return the following year, available nationwide.
Utility rebates
$300–$2,000/ton
Varies by provider
Most electric and gas utilities run their own efficiency rebates for heat pumps, AC, and smart thermostats. Amounts and qualifying equipment tiers vary widely, check your provider's site directly.

Rebate FAQs

How much can rebates stack up to?
Income-eligible households can stack HEEHRA (up to $8,000), a state heat pump incentive ($1–3K), a utility rebate ($300–$2K/ton), and the Federal 25C tax credit (up to $2,000). Most projects qualify for at least a few thousand dollars; income-qualified projects can reach $8–10K off.
Who qualifies for HEEHRA?
HEEHRA is income-based. Households at or below 80% of Area Median Income (AMI) qualify for up to 100% of project cost; 80–150% AMI qualify for up to 50%. Each state administers its own application.
Do I have to apply for rebates myself?
It depends on the program. Point-of-sale rebates like HEEHRA are often applied directly by a participating contractor, so you never front the cost. Utility rebates and the federal tax credit usually require a separate application or tax filing.
Can I combine multiple rebates?
Yes, most programs are designed to stack, for example HEEHRA plus the Federal 25C credit plus a utility rebate on the same heat pump. Confirm each program's stacking rules, since some cap total assistance as a percentage of project cost.
Are rebates available for AC, or only heat pumps?
The largest rebates target heat pumps specifically, since they electrify heating as well as cooling. Standard high-efficiency AC and furnaces still qualify for some utility rebates and, in some cases, the Federal 25C credit.
Is the tax credit different for a geothermal heat pump?
Yes, and it's more generous. Air-source heat pumps use the capped 25C credit (up to $2,000/yr). Ground-source (geothermal) systems instead qualify for the Residential Clean Energy Credit, Section 25D, the same credit solar panels use: 30% of total project cost including installation, with no dollar cap.

Considering geothermal specifically? See the full breakdown of the uncapped 25D credit and the loop-field cost math.

California detail, via HVAC in LA
HVAC rebates available in Los Angeles: HEEHRA, TECH, LADWP, SCE →San Fernando Valley HVAC rebate (2026): the Aliso Canyon TECH guide →New 2026 HEEHRA rebate tiers: what homeowners need to know →