The Section 25C heat-pump credit ended
The IRS states that the Energy Efficient Home Improvement Credit under Section 25C is not allowed for property placed in service after December 31, 2025. A heat pump installed in 2026 does not qualify for the former federal credit of up to $2,000.
Tax rules can depend on when property was placed in service and on individual circumstances. Use current IRS instructions or a tax professional when handling a 2025 installation or prior-year filing.
Rebates may still be available
Federal Home Energy Rebate funding is administered by states, territories, and Tribes. Program launch status, income limits, eligible equipment, required contractors, reservation steps, and available funding differ by location. Utilities and local governments may offer separate incentives.
- Check the Department of Energy program-status page for your location.
- Search your electric utility and state energy office websites.
- Confirm whether preapproval or an energy assessment is required.
- Verify the exact matched system and installation date before purchase.
Do not assume every fuel-switching project qualifies
DOE program guidance changed in 2026, and participating jurisdictions implement their own requirements. Some high-efficiency electric rebate pathways now focus on upgrading existing electric equipment rather than replacing fossil-fuel equipment. Ask the program administrator to confirm the current rule for your project.
Document the project
Keep model and serial numbers, AHRI references, invoices, proof of payment, permit and commissioning records, and written eligibility confirmation. Do not rely on an estimated rebate in a sales proposal unless the responsible program has approved or reserved it.