The federal 25C credit is gone. But Mass Save, NY Clean Heat, SCE, Xcel Energy, and dozens of other state and utility programs remain active — and some are more generous than the federal credit ever was.
State and utility heat pump and HVAC rebates vary significantly by location — see what's available for you.
Select your project and enter your ZIP — we research every active program instantly.
Covers all 50 states — federal, state, county, city, water district, and utility programs.
The 25C Energy Efficient Home Improvement Credit provided a meaningful federal backstop for HVAC upgrades since 2022 — up to $2,000 for heat pumps and $600 for central ACs. That ended December 31, 2025. But the states and utilities that were most invested in electrification and efficiency haven't stopped their programs.
The geographic disparity has widened. Homeowners in Massachusetts, New York, California, and Colorado can still access $3,000–$10,000+ in incentives for a heat pump upgrade. Homeowners in states without strong utility programs may see little to no incentive remaining. Enter your ZIP to see which camp you're in.
Massachusetts — Mass Save
Best in USUp to $10,000 for whole-home heat pump conversion, $2,000 per ductless zone. Income-qualified households receive up to 100% rebates. Requires free energy assessment first. Best heat pump rebate program in the US.
New York — NY Clean Heat
ActiveUp to $3,000 per system administered through utility companies. Both central and ductless systems eligible. Income-qualified adders available. Check your specific utility for current amounts.
California — SCE & SoCalGas
ActiveSCE offers $200–$2,000 for qualifying heat pumps replacing gas. SoCalGas offers $75–$400 for high-efficiency gas equipment. Programs update frequently — verify current amounts before purchasing.
Colorado — Xcel Energy
Active$75–$800 for ENERGY STAR central ACs, heat pumps, furnaces, and smart thermostats. Apply after installation. Available to Xcel Energy Colorado customers.
The DOE Weatherization Assistance Program (WAP) and equivalent state programs provide free or heavily subsidized HVAC upgrades for income-qualifying households — regardless of which state you're in. These programs aren't well-advertised but can cover the full cost of a heat pump or furnace replacement.
Eligibility is typically based on household income relative to the federal poverty level (usually 200–250%). Contact your state energy office or local community action agency to apply.
No. The federal 25C Energy Efficient Home Improvement Credit — which offered up to $3,200 per year for heat pumps, central ACs, furnaces, water heaters, insulation, windows, and doors — expired December 31, 2025 under the One Big Beautiful Bill. Equipment installed and placed in service in 2025 can still be claimed on 2025 tax returns. No federal credit is available for 2026 installations.
Massachusetts Mass Save remains one of the most generous heat pump rebate programs in the country. Available incentives include up to $10,000 for whole-home heat pump systems, $2,000 per ductless mini-split zone, and up to 75–100% rebates for income-qualifying households. A free Mass Save energy assessment is required before installation. Available to all customers of Mass Save utility companies (Eversource, National Grid, Unitil, Cape Light Compact).
NY Clean Heat is New York's statewide heat pump rebate program administered through utility companies via NYSERDA. It offers up to $3,000 per system for qualifying heat pump installations. Both central ducted and ductless mini-split systems are eligible. Additional income-qualified incentives are available. Check your specific utility's current program amounts as they vary by service territory.
Yes. SCE offers rebates of $200–$2,000 for qualifying heat pump systems that replace gas heating equipment. The amount varies by equipment efficiency rating and customer income tier. SoCalGas offers separate rebates of $75–$400 for high-efficiency gas furnaces and water heaters within its service area. Check both utilities' websites for current rebate tables as amounts change periodically.
Without the federal tax credit, the economics have narrowed but heat pumps remain the better long-term choice in most climates. Benefits include: lower operating costs in mild climates (heat pumps can be 3x more efficient than gas), eligibility for state and utility rebates, protection against gas price volatility, and cooling capability in summer. In very cold climates (below -10°F average lows), dual-fuel systems (heat pump + gas backup) often make the most sense.
Our vetted local HVAC contractors know every rebate program in your area and can price your job with incentives already factored in.