Question 1

Did the federal heat pump tax credit really expire?

Accepted Answer

Yes. The 25C Energy Efficient Home Improvement Credit, which provided up to $2,000 for qualifying heat pump installs, expired on December 31, 2025. Installs completed in 2026 and later do not qualify for the federal credit. Some installers are still advertising it; they're using old marketing.

Question 2

How do I find out if HEAR is open in my state?

Accepted Answer

States control their own HEAR program rollout. As of mid-2026, programs are open in roughly 10 states (including Colorado, Georgia, Michigan, North Carolina, Indiana, Wisconsin, DC). California's single-family HEEHRA was fully reserved in February 2026. Many states haven't launched yet. Use our calculator or check your state's energy office page for live status.

Question 3

Can I claim HEAR if I install the heat pump myself or use my own contractor?

Accepted Answer

No. HEAR rebates are point-of-sale through state-registered contractors. The rebate is applied at install time, not as a tax refund. Self-install does not qualify. Make sure your contractor is on the state's approved list before signing the contract.

Question 4

What's the difference between an air-source and ground-source (geothermal) heat pump for rebates?

Accepted Answer

Most state HEAR programs and utility rebates target air-source heat pumps (including ductless mini-splits and ducted central systems). Geothermal heat pumps had their own federal credit that also expired December 31, 2025. A few states still offer geothermal-specific rebates, but they're separate from the heat-pump line item.

Question 5

Does a heat pump save me money if my old furnace still works?

Accepted Answer

Usually not, in the short term. The economics work best when your existing heating or cooling equipment is at end of life and would need replacement anyway. If your current furnace has 5+ years of useful life left, you're paying a premium to retire it early — even with rebates, that's often a 12–18 year payback. Most state programs are designed for replacement, not preemptive upgrade.

Heat pump rebates in Montana (2026)