This page may contain affiliate links. If you use a partner link, we may earn a referral commission at no extra cost to you. See our privacy policy.
Heat Pump Rebates & Incentives
Heat pumps are one of the most efficient ways to heat and cool your home. Federal tax credits under the Inflation Reduction Act cover up to 30% of the cost (up to $2,000 per year), and many states and utilities offer additional rebates that can significantly reduce your out-of-pocket expense.
Federal programs for Heat Pumps
25C Energy Efficient Home Improvement Credit
Up to $2,000 per year for qualifying heat pumps (air-source, geothermal, or mini-split). Covers 30% of equipment and installation costs.
Eligibility: Must be an existing home you own and use as a primary or secondary residence. New construction does not qualify.
HOMES / HEAR Rebates (IRA §50121–50122)
Income-qualified households may receive $4,000–$8,000 in point-of-sale rebates for heat pump installations through state-administered programs.
Eligibility: Low- and moderate-income households (up to 150% of area median income). Check your state energy office for availability.
Find local Heat Pumps rebates
Enter your ZIP code to discover state, utility, and local rebates available in your area.
Frequently asked questions
How much can I save with heat pump rebates?
Depending on your income and location, you could save $2,000–$8,000 or more on a heat pump installation through combined federal tax credits, state rebates, and utility incentives.
Do I need to replace my existing system to qualify?
Not always. Many programs cover both replacements and new installations. However, some utility rebates require you to be replacing an older, less efficient system.
Are mini-splits eligible for rebates?
Yes. Ductless mini-split heat pumps qualify for the federal 25C tax credit and most state and utility rebate programs.
Recommended partners
We may earn a commission when you use one of our partner links. This helps support the site at no extra cost to you.