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Heat pump incentives, decoded.

Incentive rules changed materially in 2026. The federal 25C tax credit for heat pumps expired for anything installed after December 31, 2025. The federal rebate program was renamed and narrowed. Here's exactly what's still on the table — for your state.

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What's available where you live

Enter your ZIP code to see federal, state, and utility programs that apply to your area, filtered to heat pump equipment.

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Programs for Illinois

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Incentive amounts, eligibility, and program status change frequently and vary by income, utility territory, and equipment efficiency tier. This page reflects Heatpump Economics' curated research as of the dates shown on each program card and is not a guarantee of eligibility or funding availability. Always confirm current terms directly with the program administrator, your utility, or a tax professional before purchasing equipment or filing for a credit. See the methodology page for sourcing details.

2026 status, plainly

What changed this year

Federal 25C tax credit — expired. The Section 25C Energy Efficient Home Improvement Credit, which covered 30% of a heat pump's cost up to $2,000/year, was terminated early by the One Big Beautiful Bill Act (signed July 4, 2025). It does not apply to any heat pump installed in 2026 or later. See the IRS 25C program page.

Federal HEEHR (formerly HEEHRA) — narrowed, state-dependent. The High-Efficiency Electric Home Rebate program was renamed from HEEHRA to HEEHR and its fuel-switching eligibility provisions were removed under DOE Program Notice 26-2 (May 29, 2026). Whether you can access it at all now depends entirely on whether your state opted in and still has funds. See the DOE Home Energy Rebates page.

California HEEHRA funding — exhausted. California's state HEEHRA allocation was fully committed and closed to new applicants as of February 24, 2026. Check the California Energy Commission for reopening updates.