Heat Pump & Mini Split Rebates by State (2026 Guide)

Between federal tax credits and state programs, qualifying heat pumps and mini splits can come with $1,000-$10,000+ in rebates depending on where you live. The catch is that programs change frequently, eligibility rules are dense, and most homeowners don't know what's available. Here's the 2026 picture.

The Federal 25C Tax Credit (Available in All 50 States)

The 25C Energy Efficient Home Improvement Credit applies nationwide. For heat pumps and mini splits:

• 30% of project cost up to $2,000 per year
• Applies to equipment AND labor
• Unit must meet CEE Tier minimum efficiency (typically SEER2 ≥ 16, HSPF2 ≥ 8.1 for split systems)
• Available through 2032

Most MrCool 5th Generation units qualify, including the entire Hyper Heat line. Save your AHRI certificate (the manufacturer issues one for each system) — you'll need it for tax filing on Form 5695.

The IRA HEEHRA Program (High-Efficiency Electric Home Rebate Act)

The Inflation Reduction Act's HEEHRA program adds another $8,000 in heat pump rebates for low-and-moderate-income households. Income limits are 80-150% of Area Median Income (varies by state).

• Below 80% AMI: Up to $8,000 rebate at point of sale (covers up to 100% of equipment cost)
• 80-150% AMI: Up to $8,000 rebate (covers up to 50% of equipment cost)
• Above 150% AMI: Not eligible for HEEHRA, but federal 25C tax credit still applies

State HEEHRA programs are rolling out across 2025-2026. Some states are live; others are still pending. Check your state below.

State-by-State 2026 Rebate Programs

Alabama

HEEHRA pending. Alabama Power offers a $250-$500 heat pump rebate for residential customers.

Alaska

HEEHRA launched 2025. Alaska Energy Authority offers $1,000-$3,000 rebates depending on income tier and efficiency.

Arizona

HEEHRA pending mid-2026. APS and SRP both offer $500-$1,000 heat pump rebates. Tucson Electric Power offers a separate $400 mini split rebate.

Arkansas

Limited state program. Federal 25C credit is the primary incentive.

California

HEEHRA launched late 2025 ($8,000 max). Plus TECH Initiative offers $1,500-$5,500 per system depending on building type and zone. PG&E and SoCal Edison offer additional $200-$1,000 rebates.

Colorado

HEEHRA launched mid-2025. Plus the CO Heat Pump Tax Credit ($1,500). Xcel Energy adds $400-$1,200 per unit.

Connecticut

HEEHRA launching Q2 2026. Energize CT offers $750-$3,000 per heat pump.

Delaware

HEEHRA pending. Delaware SEU offers $400-$1,000 heat pump rebates.

Florida

HEEHRA pending. No statewide heat pump rebate, but TECO and Duke Energy Florida offer $300-$1,000 utility rebates.

Georgia

HEEHRA pending. Georgia Power offers $200-$500 heat pump rebates.

Hawaii

HEEHRA pending. Hawaii Energy offers $500-$1,500 heat pump rebates.

Idaho

Limited state program. Federal 25C is primary.

Illinois

HEEHRA pending. ComEd and Ameren offer $400-$1,200 heat pump rebates.

Indiana

Limited state program. Indiana utilities offer scattered $200-$500 rebates.

Iowa

HEEHRA pending. MidAmerican and Alliant offer $500-$1,000 heat pump rebates.

Kansas

Limited state program. Evergy offers $300-$700 heat pump rebates.

Kentucky

Limited state program. LG&E and KU offer $250-$600 heat pump rebates.

Louisiana

HEEHRA pending. Entergy offers $200-$500 heat pump rebates.

Maine

HEEHRA launched 2025. Plus Efficiency Maine offers $4,000 per heat pump for income-qualified, $2,000 for moderate income, $400 for whole-home. Maine has the most generous state-level heat pump program in the country.

Maryland

HEEHRA launched late 2025. EmPOWER Maryland offers $500-$3,000 heat pump rebates.

Massachusetts

HEEHRA launched 2025. Plus Mass Save offers $10,000+ for whole-home heat pump conversions with proper electrical upgrades. Mass Save has been the gold standard heat pump program for years and stacks well with HEEHRA. Mass residents who qualify can stack federal + HEEHRA + Mass Save for $15,000+ in total incentives.

Michigan

HEEHRA pending. DTE and Consumers Energy offer $400-$1,500 heat pump rebates.

Minnesota

HEEHRA launched late 2025. Plus Xcel Energy MN offers $250-$1,500 heat pump rebates.

Mississippi

Limited state program. Federal 25C is primary.

Missouri

Limited state program. Ameren and Spire offer $300-$700 heat pump rebates.

Montana

HEEHRA launching mid-2026. NorthWestern Energy offers $400-$800 heat pump rebates.

Nebraska

Limited state program. Nebraska Public Power District offers $300-$700 heat pump rebates.

Nevada

HEEHRA pending. NV Energy offers $250-$1,000 heat pump rebates.

New Hampshire

HEEHRA launching Q2 2026. NHSaves offers $500-$2,000 heat pump rebates.

New Jersey

HEEHRA pending. NJ Clean Energy Program offers $300-$1,500 heat pump rebates.

New Mexico

HEEHRA pending. PNM offers $400-$1,000 heat pump rebates.

New York

HEEHRA launched 2025. Plus NYSERDA offers $1,000-$4,500 per heat pump through the EmPower+ and Clean Heat programs. New York stacks federal + HEEHRA + NYSERDA — total potential incentives reach $13,000+.

North Carolina

HEEHRA pending. Duke Energy NC offers $300-$1,000 heat pump rebates.

North Dakota

Limited state program. Federal 25C is primary.

Ohio

HEEHRA pending. AEP Ohio offers $250-$700 heat pump rebates.

Oklahoma

Limited state program. OG&E offers $300-$700 heat pump rebates.

Oregon

HEEHRA launched late 2025. Plus Energy Trust of Oregon offers $1,500-$3,500 heat pump rebates.

Pennsylvania

HEEHRA pending. PECO and PPL offer $400-$1,200 heat pump rebates.

Rhode Island

HEEHRA launching Q2 2026. Rhode Island Energy offers $750-$2,500 heat pump rebates.

South Carolina

Limited state program. Duke Energy SC offers $300-$1,000 heat pump rebates.

South Dakota

Limited state program. Federal 25C is primary.

Tennessee

Limited state program. TVA offers $400-$1,000 heat pump rebates.

Texas

HEEHRA pending. Oncor and CenterPoint offer scattered $250-$700 heat pump rebates.

Utah

HEEHRA pending. Rocky Mountain Power offers $400-$1,000 heat pump rebates.

Vermont

HEEHRA launched 2025. Plus Efficiency Vermont offers $1,500-$3,000 heat pump rebates. Vermont stacks especially well for cold-climate Hyper Heat installs.

Virginia

HEEHRA pending. Dominion Energy offers $250-$1,500 heat pump rebates.

Washington

HEEHRA launched late 2025. Plus PSE and Seattle City Light offer $1,000-$2,500 heat pump rebates.

West Virginia

Limited state program. Federal 25C is primary.

Wisconsin

HEEHRA pending. Focus on Energy offers $400-$1,200 heat pump rebates.

Wyoming

Limited state program. Federal 25C is primary.

How to Stack Maximum Rebates

The general rule: federal 25C credit stacks with state and utility rebates as long as you don't exceed total project cost. Here's the order of operations:

1. Verify your unit qualifies — get the AHRI certificate from MrCool (or your dealer). Confirm SEER2 ≥ 16 and HSPF2 ≥ 8.1 for the federal credit.
2. Check HEEHRA eligibility — find your state's HEEHRA portal (DOE maintains a national list). If you qualify, the rebate is point-of-sale, meaning the dealer takes it off the invoice.
3. Apply for state utility rebate — most utilities require an application within 60-90 days of install with proof of equipment specs and an itemized invoice.
4. File federal 25C on Form 5695 — when you do your taxes for the year of the install. Keep the AHRI certificate, invoice, and proof of payment for at least 3 years.

Real Stack Examples

Example 1: Ohio homeowner, middle income, $5,000 mini split install

• HEEHRA: not yet live in Ohio
• AEP Ohio rebate: $500
• Federal 25C: $1,500 (30% of $5,000)
• Total incentives: $2,000 (40% off)

Example 2: Massachusetts homeowner, low income, $7,000 multi-zone heat pump install

• HEEHRA: $7,000 (covers full cost for low-income)
• Mass Save rebate: $0 (HEEHRA covers it)
• Federal 25C: not applicable (no out-of-pocket cost)
• Total incentives: $7,000 (100% covered)

Example 3: New York homeowner, middle income, $8,000 cold-climate heat pump install

• HEEHRA: $4,000 (50% subsidy for moderate income)
• NYSERDA rebate: $1,500
• Federal 25C: $750 (30% of remaining $2,500)
• Total incentives: $6,250 (78% off)

What Doesn't Qualify

Common eligibility issues that disqualify systems:

• Used or refurbished equipment — must be new
• Equipment below CEE Tier efficiency — older 13 SEER2 units don't qualify
• DIY installs in some state programs — about 30% of state utility rebates require licensed contractor install (HEEHRA and federal 25C have no install-method requirement)
• Equipment purchased from non-authorized sellers — some programs require purchase from a state-approved dealer list. Buying from an authorized MrCool dealer ensures qualification.

Why You Should Buy in 2026

The federal 25C credit runs through 2032 with no scheduled changes. State programs are more volatile — Mass Save, NYSERDA, and Efficiency Maine have all had budget caps that ran out mid-year and resumed the next fiscal year. If your state program is live, claim it sooner rather than later.

For a personalized recommendation that accounts for your state's available rebates, our Match My Space tool walks through both the equipment selection and rebate stack. Or call (657) 582-0899 — I help homeowners stack federal + state + utility rebates almost daily.

Frequently Asked Questions

Can I get the federal 25C tax credit and a state rebate on the same heat pump?

Yes. Federal credits stack with state and utility rebates as long as your total incentives don't exceed the project cost. The standard order: state/utility rebate first (typically point-of-sale or applied within 90 days), then federal 25C credit when you file taxes for the install year.

How do I claim the federal 25C heat pump tax credit?

File IRS Form 5695 with your federal tax return for the year you installed the system. You'll need the AHRI certificate (manufacturer issues one for each system) and an itemized invoice. Keep both for 3+ years in case of audit. The credit reduces your tax bill dollar-for-dollar up to $2,000 per year.

What is HEEHRA and how do I apply?

HEEHRA (High-Efficiency Electric Home Rebate Act) is the federal IRA-funded rebate program offering up to $8,000 for heat pumps to income-qualified households. It's administered state-by-state — check your state energy office or DOE's state rollout tracker. Once your state's portal is live, the rebate is applied at point of sale by participating dealers.

Do MrCool DIY mini splits qualify for the federal tax credit?

Most MrCool 5th Generation DIY units qualify (SEER2 ≥ 16, HSPF2 ≥ 8.1). Check the AHRI certificate for your specific model. The federal 25C credit has no requirement that a licensed contractor perform the install — DIY-installed qualifying systems are fully eligible. Some state utility rebates DO require licensed contractor install; HEEHRA does not.

Which state has the best heat pump rebates in 2026?

Massachusetts (Mass Save up to $10,000+), New York (NYSERDA $1,000-$4,500 plus HEEHRA), Maine (Efficiency Maine $400-$4,000), and Vermont (Efficiency Vermont $1,500-$3,000) have the most generous state-level programs. Combined with federal 25C and HEEHRA, residents in these states can stack $10,000-$15,000+ in total incentives.