Illustration of someone reviewing a printed rebate application form at home, with a heat pump water heater visible in the background.

Heat Pump Water Heater Rebates by State

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The federal 25C tax credit for heat pump water heaters ended for anything placed in service after December 31, 2025. Some help is still available through the IRA’s Home Electrification rebate program (capped at $1,750) and individual state or utility rebates — but coverage is uneven and several programs have paused or not yet launched.

Illustration of someone reviewing a printed rebate application form at home, with a heat pump water heater visible in the background.
Illustration of someone reviewing a printed rebate application form at home, with a heat pump water heater visible in the background.

Likely Causes, Ranked

  1. Federal 25C tax credit: ended
    Covered installs through December 31, 2025 only, under the One Big Beautiful Bill Act’s rollback.
  2. IRA Home Electrification rebate (HEEHR)
    A separate $8.8B national pool, capped at $1,750 for a heat pump water heater. As of mid-2026, twelve states plus DC had launched their programs.
  3. State/utility-level programs vary widely
    Some states have live programs, some have paused, and some haven’t launched at all — check before assuming.

Step-by-Step Diagnosis

  1. DIY SAFE
    Check whether your state has launched its HEEHR program

    As of mid-2026, active or recently active programs included Arizona, California, Colorado, Georgia, Indiana, Maine, Michigan, New Mexico, New York, North Carolina, Rhode Island, DC, and Wisconsin — but confirm current status before you buy, since some have paused.
  2. DIY SAFE
    Check your utility separately from the state program

    Utility rebates stack on top of state/federal programs in many cases. Efficiency Maine, for example, has run an instant discount around $1,150; Duke Energy has offered around $500 for a 50-gallon unit.
  3. DIY WITH CAUTION
    Get any rebate pre-approval before you buy, not after

    Most rebate programs require enrollment or a qualifying contractor before purchase, not a receipt submitted afterward.

FAQ

Is there still a federal tax credit for heat pump water heaters in 2026?

No — the 25C credit ended for anything installed after December 31, 2025.

What’s the maximum rebate available now?

The IRA Home Electrification program caps its heat pump water heater rebate at $1,750, where the program has launched.

Written by HotWater Decoded — water heater repair specialists. Technically reviewed by a licensed technician on our team.

Sources

  • IRS guidance on the 25C credit’s end date under the One Big Beautiful Bill Act
  • Building Performance Association state rebate tracking (mid-2026)
  • Efficiency Maine and Duke Energy public rebate program pages

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