State-by-State Heat Pump Rebates 2025: Interactive Guide to Maximize Savings

How much can you save in 2025?

Think in layers. First layer: the federal 25C tax credit 30% of project cost up to $2,000 available through 12/31/2025 for qualifying air-source heat pumps. Second layer: state or city rebates that often add $500–$10,000+ depending on equipment and whether it’s your primary heat source. Third layer: utility incentives (common range $300–$2,000). Low- and moderate-income households in participating states may get up to $8,000 off at point-of-sale via HEEHRA. Yes, you can typically stack these just check each program’s rules to avoid double-dipping on the same cost line. A realistic stack for a standard 2–3 ton install can be $3,000–$12,000. If you’re comparing equipment, see our Sizing Guide.

Who qualifies (owner, renter, income, and home type)?

25C is the easiest gate: no income limits, and homeowners and renters can claim it for primary or secondary residences (not new builds). HEEHRA targets income: ≤80% AMI may get 100% of eligible costs covered up to $8,000; 80–150% AMI may get 50% up to $8,000 at the register in participating states. HER (Home Efficiency Rebates) pay based on whole-home energy savings (modeled or measured). State and utility programs vary: many want ENERGY STAR (or Most Efficient), licensed contractor installation, and sometimes pre-approval before work. Renters: some states/utilities let landlords claim incentives; others let tenants claim when they pay for equipment. If your ducts are tired or you’re adding zones, check ductless mini splits.

Federal 25C: what changed in 2025 and how to claim

In 2025, the 25C credit only applies to ENERGY STAR Most Efficient air-source heat pumps (not just any ENERGY STAR). The credit equals 30% of installed costs up to $2,000 and expires permanently after December 31, 2025. Keep itemized invoices, model and serial numbers, and the AHRI reference for your outdoor/indoor match. You claim it at tax time using IRS Form 5695. Pro tip: ensure your contractor provides a written commissioning checklist (refrigerant charge, airflow/ESP, heat mode supply temps). That’s not a tax requirement, but it proves performance and helps with other rebates. If you’re pairing equipment (e.g., heat pump + air handler), choose compatible, high-efficiency matches; see our R-32 air handler systems.

HEEHRA rebates: who gets the $8,000 and where?

HEEHRA delivers point-of-sale rebates up to $8,000 for qualifying heat pumps, with the amount based on household income and Area Median Income (AMI). As of August 2025, participating jurisdictions include AZ, CO, GA, IN, ME, MI, NM, NY, NC, RI, DC, WI. California’s single-family HEEHRA is fully reserved for 2025; more states are pending approval. Expect income verification, ENERGY STAR equipment, registered contractors, and sometimes pre-registration. Because funds are limited, timing matters—contractors in active states often queue applications. If you’re planning a ductless project, compare DIY-friendly mini splits vs. pro-installed wall-mounted options to match program rules.

Home Efficiency Rebates (HER): where they’re live and how they pay

The HER program rewards your whole-home energy savings—either modeled (predicted) or measured (verified after upgrades). It’s currently active in GA, IN, MI, NC, DC, and WI. Incentives can reach up to $8,000, but you must meet the percentage savings thresholds and use approved assessment methods. Practically: you’ll undergo an energy audit, choose a package (heat pump, air sealing, duct sealing/insulation, controls), and then the program pays based on the projected or actual energy cuts. If your ducts leak like a sieve, you might get more value bundling duct sealing with the new heat pump to hit higher savings tiers. Ask your contractor to include Manual J load calculations and duct diagnostics. For equipment selection, explore packaged heat pumps if space is tight outdoors.

Standout state programs you should know

• Connecticut (Energize CT): $250/ton, up to $15,000 combined incentives. Pre-registration/approval required before installation.

• Maine (Efficiency Maine): Up to $9,000 lifetime based on income ($3,000/$2,000/$1,000 per outdoor unit tiers).

• Colorado: State heat pump tax credits flow as up-front discounts via registered contractors, who must pass ≥33.33% of the credit to customers.

• Oregon: The Heat Pump Purchase Program offers $2,000 to homeowners, rental owners, and even homes under construction—funded in rounds.

• Massachusetts (Mass Save): Up to $10,000 when the heat pump is the primary heating system.

• New York (EmPower+): Income-based rebates up to $8,000.

For multi-family or hospitality, see PTAC heat pumps. Always check pre-approval and installer requirements these are the common tripwires.

Utility rebates worth checking (examples)

• TVA Energy Right (Southeast): Up to $800 for heat pumps ≥17 SEER2—often paired with duct improvements.

• PSE (Puget Sound Energy, WA): Assorted heating incentives; note that natural gas appliance rebates end Aug 10, 2025.

• Con Edison (NY): Up to $10,000 for air-source systems higher for disadvantaged communities and cold-climate models.

• Consumers Energy (MI): Around $300 for SEER2 15.2+ air-source heat pumps.

These are snapshots; your utility may offer bonus adders for smart thermostats, cold-climate ratings, or electrical panel upgrades. Call their rebate line before you buy; some require program enrollment or QA inspections. If you’re replacing window shakers or adding zone control, compare through-the-wall heat pumps.

Step-by-step: how to stack rebates without missing deadlines

1. Search everything: Use DSIRE, ENERGY STAR Rebate Finder, your state energy office, and your utility’s rebate page.

2. Check income: See if you qualify for HEEHRA using your Area Median Income.

3. Pick qualifying equipment: Prioritize ENERGY STAR Most Efficient in 2025 for 25C.

4. Choose a contractor: Many programs require registered/licensed installers.

5. Pre-register: If your state/utility requires pre-approval, do it before installation.

6. Install + document: Save invoices, model/serial numbers, and the AHRI reference.

7. Submit fast: File rebate paperwork within 2–6 months post-install; claim 25C with Form 5695 at tax time.

Need help picking a system to match? See our Design Center and Help Center.

Pro contractor tips to keep your rebate from getting denied

• Manual J matters: Oversized heat pumps short-cycle and fail comfort tests; sizing correctly often unlocks cold-climate incentives.

• AHRI match: Rebates ask for the exact matched combination (outdoor + indoor). Keep the AHRI certificate.

• Duct pressure & airflow: Many denials trace to ESP too high or poor airflow. Have your installer record CFM and ESP.

• Pre-approval screenshots: Save the pre-registration confirmation email or PDF.

• Photos: Take clear photos of nameplates, line-set connection, condensate, and outdoor clearances.

• Commissioning report: Include superheat/subcool, supply/return temps, thermostat setup, and defrost settings.

• One point of contact: Assign a person (you or the contractor) to track deadlines and upload documents promptly.

Grab the small stuff you’ll need accessories and line sets so the job passes inspection the first time.

Choosing a heat pump that actually qualifies (specs to look for)

For 25C in 2025, your air-source system must be ENERGY STAR Most Efficient. Look for SEER2, EER2, and HSPF2 that meet your climate’s thresholds; in cold regions, choose cold-climate models with rated capacity at 5°F or -5°F. Mixed-fuel setups (dual fuel) may be eligible in some states; see R-32 residential dual-fuel packaged options and confirm local rules.

State-by-state checklist + trusted resources

Use this quick routine in every state:

1. Look up programs on DSIRE (filter “heat pump”).

2. Check ENERGY STAR Rebate Finder for product-specific offers.

3. Visit your state energy office page for rules, forms, and pre-registration.

4. Run the Rewiring America calculator to estimate HEEHRA/HER eligibility.

5. Verify your state’s status on the DOE Home Energy Rebates Portal.

6. Call your utility to ask about bonus adders, QA steps, and inspection timelines.

Ready to compare equipment? Start with our R-32 systems or ductless mini-split collections.

Frequently Asked Questions

What’s the fastest way to see what I qualify for?
Use DSIRE for state/utility offers, then the ENERGY STAR Rebate Finder. If you’re income-eligible, check your state’s HEEHRA page and the DOE portal.

Can I stack 25C with state and utility rebates?
Usually yes—25C is a federal tax credit; most state/utility rebates can stack. Read each program’s “can’t combine with…” notes.

Does 25C cover ductwork or electrical upgrades?
25C primarily targets the heat pump. Some programs cover panel or duct work; HER often rewards whole-home savings that include those measures.

Do renters qualify?
Yes for 25C (if you pay for the upgrade) and in some cases for state/utility rebates. For HEEHRA, eligibility depends on household income and state program rules.

What paperwork do I need?
Itemized invoice, model/serial, AHRI reference, and any pre-approval. Keep commissioning data if an inspector asks.

My state’s HEEHRA is “fully reserved.” Now what?
Look to 25C, HER (if active), and utility rebates. Some states add new funding rounds—check back monthly.

Will a DIY mini split qualify?
Many rebates require licensed installer sign-off. If you’re considering DIY, confirm your program’s rules first. Browse our DIY mini splits to compare.

Do cold climates get extra incentives?
Often yes. Programs may pay more for cold-climate models with low-temp capacity. Ask about “cold-climate adders.”

What happens after 2025?
The 25C heat pump credit ends 12/31/2025. State/utility rebates may continue, but amounts and rules can change with budgets.

Where can I get product help without a sales pitch?
Start with our HVAC Tips, and Design Center.