Heat Pump Rebates by State (2026): Who Qualifies and Where Programs Are Live

If your household earns 150% or less of your area's median income, the single biggest pot of heat pump money in 2026 is the federal Home Electrification and Appliance Rebates program (HEAR, also called HEEHR) — up to $8,000 off a qualifying ENERGY STAR heat pump, applied as a discount at the point of sale rather than a check months later. The catch is that HEAR is run by state energy offices, not the IRS, and as of mid-2026 only about a dozen states plus the District of Columbia have live programs. Everyone else holds awarded funding and is working toward launch under updated federal guidance issued June 1, 2026.

The other big change this year: the federal Section 25C tax credit, which was worth up to $2,000 for heat pumps, expired for systems placed in service after December 31, 2025 under the tax law signed in July 2025. That means state rebates and utility incentives now carry the entire savings load for a 2026 installation. This guide covers who qualifies for HEAR, how the application flow actually works, where each state stood as of July 2026, and how to find the utility rebates that stack on top.

How the $8,000 HEAR Rebate Works

HEAR comes from the Inflation Reduction Act of 2022, which set aside $4. 5 billion for state-run electrification rebates (California brands its version HEEHRA). It is income-qualified with two tiers: households below 80% of area median income (AMI) can have up to 100% of project costs covered, while households between 80% and 150% of AMI can have up to 50% covered. The heat pump cap is $8,000, and a household can claim up to $14,000 total across all covered measures. According to ENERGY STAR program guidance, the rebate is applied at the point of sale — the participating contractor or retailer subtracts it from your invoice, so you never front the money. Income is verified through your state's program portal before work begins, typically with last year's tax return, recent pay stubs, or automatically in many states if you are already enrolled in a program like SNAP, LIHEAP, or Medicaid.

• Heat pump for heating and cooling: up to $8,000
• Heat pump water heater: up to $1,750
• Electrical panel upgrade: up to $4,000
• Electrical wiring: up to $2,500
• Insulation, air sealing, and ventilation: up to $1,600
• Electric or induction stove, or heat pump clothes dryer: up to $840
• Household maximum across all measures: $14,000

The Application Flow, Step by Step

Where Rebate Programs Stand, State by State (July 2026)

Every state except South Dakota applied for and was awarded Home Energy Rebate funding by January 2025, but according to the Building Performance Association's June 2026 fact sheet, only twelve states and the District of Columbia had launched programs as of this writing. Idaho's legislature has since moved to stop participating. The June 2026 DOE guidance gives the remaining 43 states and territories a pathway to launch, so expect this map to keep changing — treat the rundown below as a snapshot and verify with your state energy office. Here is where the live and near-live programs stood, grouped by region.

• New York — first state in the nation to launch (May 2024). Federal rebates for income-qualified households run through NYSERDA's EmPower+ program, and the separate NYS Clean Heat utility program pays roughly $5,967-$12,000 toward air-source heat pumps depending on your utility territory.
• Maine — Efficiency Maine administers income-tiered heat pump rebates alongside the state's federal rebate funding.
• Rhode Island — income-qualified electrification rebates launched through the state energy office.
• Massachusetts — the federal HEAR program had not launched, but Mass Save pays up to $8,500 toward whole-home air-source heat pump conversions under its 2026 rules (down from $10,000 in 2025), with larger enhanced rebates for income-qualified households.
• New Hampshire — HEAR was expected to open in summer 2026; watch the Department of Energy's homeowner funding page.
• Connecticut — funding awarded but applications were not yet open; Energize CT utility rebates are available in the meantime.
• District of Columbia — rebates live through the DC Department of Energy and Environment.

• Wisconsin — the first state to launch a HOMES efficiency program (August 2024). Rebates run through Focus on Energy and can stack with its standard heat pump incentives.
• Michigan — Michigan Home Energy Rebates (MiHER) live, with point-of-sale rebates for households at or below 150% of AMI.
• Indiana — Indiana Energy Saver runs both the electrification (HEAR) and whole-home efficiency (HOMES) tracks.
• Georgia — the Georgia Environmental Finance Authority launched in November 2024; combined rebates reach up to $16,000 depending on income and energy savings, and GEFA reports more than 2,600 households served as of June 2026.
• North Carolina — Energy Saver NC launched in January 2025, with combined rebates also reaching up to $16,000 depending on income and project scope.

• California — income-qualified HEEHRA heat pump rebates of up to $8,000 run through TECH Clean California. Funding phases have sold out quickly, so check the Switch Is On website for current availability before getting quotes.
• Colorado — HEAR live, though funding for some regions and home types has periodically been fully reserved; apply early in a funding wave.
• Arizona — Efficiency Arizona offers HEAR rebates for households at or below 150% of AMI.
• New Mexico — HEAR live through the state's Energy Conservation and Management Division.
• Washington — HEAR rebates run through the state Department of Commerce, supplemented by Washington's own Climate Commitment Act funding.

Utility Rebates: The Layer Most Homeowners Miss

Even if your state has no live HEAR program — or your income is above 150% of AMI — your electric utility probably pays something for heat pumps. Typical utility rebates run a few hundred to a couple thousand dollars, and some pay far more: several California municipal utilities have offered $3,000 or more per installation. Utility rebates generally stack with state programs, though you usually cannot apply two federal rebates to the same dollar of project cost, and each program has its own equipment-efficiency requirements. The fastest way to find everything available at your address is the DSIRE database (dsireusa. org), a free directory of state, local, and utility incentives maintained by the N. C. Clean Energy Technology Center at N. C. State University.

When you compare bids, ask each contractor to show the rebate as a line item, list the exact model numbers (so you can confirm ENERGY STAR certification against program requirements), and state which programs they are enrolled in. A contractor who works with your state program regularly can tell you quickly whether funds are currently available or reserved.