California Heat Pump Rebates: What’s Open in 2026

Los Angeles homeowner reviewing a heat pump estimate

California heat pump rebates in 2026 come from three places: the state’s federally funded HEEHRA program, regional air quality programs such as South Coast AQMD’s GO ZERO, and your local utility, such as LADWP in Los Angeles. The federal tax credit is gone for new installs, the single-family state rebate is fully reserved, and the local programs are where most homeowners will find money today. Which one applies depends on your address, your income and the equipment you choose.

We install and repair heat pumps and mini splits across Greater Los Angeles, so we see how these programs work on real jobs. Here is what is open, what each one pays, the rules that trip people up, and how to avoid losing a rebate to a paperwork mistake.

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TL;DR

The federal 25C tax credit only covered heat pumps placed into service by December 31, 2025, so a heat pump installed in 2026 does not qualify.
The state’s HEEHRA single-family program was fully reserved statewide as of February 24, 2026. Multifamily rebates were still available.
Local programs carry most of the load now: LADWP pays up to $2,500 per ton for heat pump HVAC, and South Coast AQMD’s GO ZERO pays $1,000 to $2,000 per unit for single-family homes.
Almost every program requires a finalized building permit, qualifying equipment and a rebate application made in the right order. Get the order wrong and you can lose the money.
Call us at (323) 970-3113 and we will check your address against the programs before you sign anything.

The three layers of California heat pump incentives

It helps to stop thinking of “the California rebate” as one thing. There are three layers, and they behave differently.

Federal and state-administered money. This was the big headline in 2024 and 2025. The federal 25C tax credit has ended for new installs, and the federally funded HEEHRA rebate is administered by the state through TECH Clean California. We cover both below.

Regional air quality district programs. These exist to cut combustion emissions. In Los Angeles, Orange, Riverside and San Bernardino counties, that district is South Coast AQMD, and its program is called GO ZERO.

Utility programs. Your electric utility often pays rebates directly. In the city of Los Angeles that is LADWP. In the Sacramento area it is SMUD. Other utilities, including Southern California Edison and the gas company serving your area, run their own offers that change from year to year.

The layers can often be stacked. South Coast AQMD states that GO ZERO incentives can be combined with other eligible incentives, which is why the smartest first step is to map every program you qualify for before choosing equipment.

What happened to the federal heat pump tax credit

If you searched for a “$7,500 tax rebate” and landed here, a quick clarification. The $7,500 figure most people remember belongs to federal clean vehicle credits, not to home heating and cooling. Heat pumps had their own credit, known as 25C, and it has ended.

The California Energy Commission states that the 25C credit was only available for heat pumps placed into service by December 31, 2025 and suggests talking with a tax professional to learn more. The key phrase is “placed into service.” The date that counts is when the system is installed and running, not when you signed the contract or paid the deposit.

That applies to heat pump water heaters too. If you are wondering whether a 2026 water heater installation earns a federal tax credit, the answer from the state’s own guidance is no. If you installed a qualifying system in 2025, ask your tax preparer whether you can still claim it on that year’s return.

Tax rules are not our field, so we do not give tax advice. Anything involving your return belongs with a CPA or enrolled agent.

HEEHRA: the state rebate for income-qualified homes

HEEHRA stands for the High-Efficiency Electric Home Rebate Act. It is the federal Inflation Reduction Act money that California distributes. It is income-based, and it is the program with the biggest dollar amounts, but it is also the one that is hardest to get right now.

Where HEEHRA stands

As of February 24, 2026, the Energy Commission reported that HEEHRA Phase I for single-family heat pump retrofits was fully reserved statewide, with no new income verification applications being accepted. The state’s program page adds that multifamily HEEHRA rebates were still available statewide, and that applications for completed projects with approved reservations continue to be processed.

Because program status can change, check the Energy Commission page before you plan around it. If you are a single-family homeowner who already holds an approved reservation, keep going. If you do not, plan around the local programs below and ask us to watch for any reopening.

How HEEHRA works if you do have a reservation

HEEHRA has a specific process. Per the Energy Commission, applicants verify income through TECH Clean California and work with a TECH-certified, HEEHRA-trained contractor to submit a reservation that must be approved before the project starts. The Commission also notes that these contractor-delivered HEEHRA rebates are the only federal IRA-funded home electrification rebates currently available to Californians.

The sequence matters:

Verify your household income.
Have a participating contractor submit the reservation.
Wait for approval.
Only then start the installation.

Starting early is the most common way homeowners disqualify themselves. A friendly contractor who says “we will sort the paperwork afterward” is giving you bad advice.

The refrigerant rule for 2026

One technical detail affects equipment choice. Beginning January 1, 2026, HEEHRA-eligible residential and light commercial air conditioning and heat pump systems must contain refrigerants with a global warming potential of 700 or lower. If you shop for a system on your own, confirm the refrigerant on the spec sheet before you fall in love with a model.

LADWP rebates for Los Angeles homeowners

If your electric service comes from the Los Angeles Department of Water and Power, this is likely your best-known program. LADWP’s Consumer Rebate Program lists heat pump HVAC rebates up to $2,500 per ton and heat pump water heater rebates up to $2,500 per unit for qualifying equipment.

“Per ton” is where the math gets interesting. A ton is a unit of cooling capacity. A typical 3-ton system could qualify for a much larger rebate than a 1.5-ton ductless system, up to the program’s limits. The official page sets the exact terms, so read its caps before you budget.

LADWP equipment and permit requirements

LADWP requires AHRI-certified equipment that meets minimum efficiency specs. For HVAC systems the page lists, among others, at least 7.7 HSPF2 and at least 15.2 SEER2. HSPF2 measures heating efficiency, and SEER2 measures cooling efficiency. Higher numbers mean less electricity for the same comfort.

The same page states that all heat pump rebate applications need a finalized building and safety permit. A final inspection sign-off is not optional, and it is one reason to hire a licensed contractor who pulls permits as a matter of routine. A deal that skips the permit also skips the rebate.

We have also written a walkthrough of how Los Angeles homeowners secure LADWP HVAC rebates if you want the application steps in more detail.

GO ZERO: South Coast AQMD’s heat pump program

GO ZERO is an air quality district program that pays for zero-emission heat pumps replacing gas or propane equipment. It covers a large part of our service area, including Los Angeles County.

Amounts for single-family homes

According to South Coast AQMD, the single-family program re-opened on August 28, 2026, with rebates between $1,000 and $2,000 per unit, and up to $3,000 for homes in overburdened communities. The district’s FAQ explains that single-family homes in overburdened communities receive double rebates, and that 75% of the funding is set aside for low-income or disadvantaged communities.

GO ZERO rebate amounts and funding allocation

Program funds open in rounds and can run out. Treat the reopening as a sign of how the program works, not a promise of how long it lasts, and check the district’s page for the current status.

Small business rebates

Business owners sometimes miss this one. The same district announcement says that GO ZERO has full initial funding for small business rebates up to $4,000 per heat pump system. If you run a shop, office or restaurant on a packaged gas unit, ask about it. We also work on commercial and VRF systems, so we can scope a business project from both the equipment and the rebate side.

GO ZERO requirements

The district’s FAQ spells out the eligibility basics:

A qualifying ENERGY STAR-certified heat pump, unless the program says otherwise.
Installation within South Coast AQMD’s jurisdiction.
The new system must replace existing gas or propane equipment.
A finalized permit is required.

The replacement rule is worth noting. If your home currently has an electric resistance furnace or no heating at all, you may not meet the “replace gas or propane” test. Confirm what you have before you apply.

Northern California: SMUD as an example

Most of our customers are in the Los Angeles area, but readers from across the state find this page, so here is how a northern utility looks. SMUD raised its heat pump rebates in February 2026, citing the expiration of federal tax credits and the depletion of state incentive funding.

Its published amounts include up to $4,000 for gas-to-electric heat pump water heater conversions and up to $3,000 for gas-to-electric heat pump HVAC conversions. Electric-to-electric upgrades for either type earn $1,000. The pattern is common across California: utilities pay more when you move off gas, and less when you swap one electric appliance for a more efficient one.

We do not serve the Sacramento area, so check SMUD directly if you live there.

Quick comparison of what’s available

Program	Who runs it	What it pays	Key condition
25C federal tax credit	IRS	Ended for new installs	Had to be in service by Dec. 31, 2025
HEEHRA, single-family	State via TECH Clean California	Income-based, fully reserved as of Feb. 2026	Income verification, trained contractor, approved reservation before work
HEEHRA, multifamily	State	Available statewide per the state page	Property owner project
LADWP Consumer Rebate	City utility	Up to $2,500 per ton (HVAC)	AHRI-certified, 7.7 HSPF2 and 15.2 SEER2 minimums, final permit
GO ZERO, single-family	South Coast AQMD	$1,000 to $2,000 per unit, up to $3,000 in overburdened communities	Replaces gas or propane, ENERGY STAR, permit
GO ZERO, small business	South Coast AQMD	Up to $4,000 per system	Located in the district
SMUD	Sacramento utility	$1,000 to $4,000 depending on type	Sacramento-area customers

Amounts and funding status change. Use this as a map, then confirm each number on the program’s own page.

What a heat pump costs, and how rebates change the math

A rebate only matters next to the real price. Our published installation range for a heat pump installation is $5,500 to $12,000. Mini split installation runs $3,500 to $20,000, because a single-room ductless head and a ten-zone setup are very different jobs. Those ranges cover the equipment, labor and permits for typical projects, and your exact quote depends on your home. Ductwork replacement, when your existing ducts are leaky or undersized, is a separate $3,000 to $8,000 line.

Here is a simple worked example using only the program rules above. Say a 3-ton system on a home in the LADWP service area is installed at the middle of our range. The LADWP rebate is calculated per ton, up to the program’s limits, and that can offset a meaningful share of the bill. If your home also sits in a GO ZERO overburdened community and replaces gas equipment, a second rebate may stack on top, subject to each program’s rules.

We will not promise a number before we see your property. What we do is lay out the equipment price, the permit cost, each rebate you qualify for and the net figure in one estimate. Our financing page covers payment options for installations if you want to spread the remaining cost.

$What a heat pump costs, and how rebates change the math — overview diagram$

Five mistakes that cost people their rebate

These come up often enough that we mention them at the start of every heat pump estimate.

Buying equipment before checking eligibility. A good-looking system with a SEER2 or HSPF2 number just under the program minimum earns nothing.
Starting HEEHRA work before reservation approval. The reservation must be approved before the project starts.
Skipping the permit or the final inspection. LADWP and GO ZERO both ask for finalized permits.
Assuming a replacement qualifies. GO ZERO is built around replacing gas or propane equipment.
Waiting for the “perfect” moment. Funding comes in rounds. A program that is open today may not be next quarter.

Does a heat pump make sense in Los Angeles?

Yes, for most homes. Our winters are mild, and a heat pump does both jobs: it cools like an air conditioner in summer and runs in reverse to heat in winter. In Los Angeles, a single system can replace both an old AC and a gas furnace.

We work in homes of every age, from 1920s Hollywood bungalows with no ducts to modern houses in the Valley and Pasadena. That range matters, because the right heat pump is not always the ducted one. A ductless mini split often fits a historic home better, since it avoids cutting into plaster walls and ceilings. A multi-zone setup can also give different rooms different temperatures.

And if your current system has a problem, a heat pump repair may be the cheaper first step. A technician who only sells replacements will not tell you that. We would rather diagnose first and show you the actual fault. Our service call starts at $125, and you can book a diagnostic visit before deciding anything.

Our perspective: rebates should serve the homeowner, not the sale

We have installed and repaired heat pumps long enough to watch rebate programs change. The pattern is always the same. Money appears, demand spikes, funds run out, and the rules shift. Homeowners who have a plan do well. Homeowners who rush into a contract because “the rebate ends Friday” often overpay.

Here is how we handle it. We do flat-rate pricing, so you see the cost before work begins. We do not charge surprise diagnostic fees. And we do not push you to replace a system that can be repaired. If your three-year-old heat pump has a failed capacitor, the answer is a repair, not a rebate-funded replacement.

When replacement is right, we help you read the program rules, choose equipment that meets the SEER2, HSPF2 and refrigerant requirements, pull the permit and finish the inspection that unlocks the rebate. Mini splits and VRF systems for businesses are a particular specialty for us, and those jobs deserve more careful rebate planning than most.

A rebate is a discount on a good decision. It should never be the reason to make a bad one.

— Leo

How to claim a rebate, step by step

Confirm your utility and your address. LADWP, SMUD and others differ, and GO ZERO depends on whether you are inside the South Coast AQMD boundary.
Check what you have now. Gas or propane equipment opens more doors than electric.
Get an estimate that lists the rebate requirements. The model number, SEER2, HSPF2, refrigerant type and permit should all be written down.
Apply or reserve before you start. Do this wherever the program requires it, and always for HEEHRA.
Install with a permit. A licensed contractor files it.
Pass the final inspection. Keep the finalized permit paperwork.
Submit your documents. Include invoices, equipment details and proof of permit.
Keep records. Save everything for your own files and your tax preparer.

Our earlier guide to California AC rebates includes a longer step-by-step application guide and notes on SEER ratings and rebate qualification.

Keep your heat pump eligible and efficient

Rebates reward efficiency, and efficiency fades without care. A dirty coil or low refrigerant makes the system work harder, raises your bill and shortens its life. A yearly tune-up catches these early. Our HVAC maintenance plan runs $180 to $250 per year, and many homeowners find that cheaper than one emergency breakdown in July.

If you already own a heat pump and it is struggling, our heat pump and AC repair services cover same-day visits, and we offer emergency service as well. For a look at what a finished job involves, see our 3-ton Daikin heat pump installation case study.

Ready to see what you qualify for?

We can walk through your address, your current equipment and the programs above, then give you a flat-rate quote with the rebates shown separately. Call (323) 970-3113 or start on our heat pump installation page. We serve Hollywood, West Hollywood, Beverly Hills, Bel Air, Brentwood, Pasadena, the Valley and the wider Los Angeles area.

FAQ

Are there California heat pump rebates available in 2026?

Yes, though which ones depend on where you live and your income. Local programs such as LADWP’s rebate and South Coast AQMD’s GO ZERO are the main options for most Southern California homeowners. The single-family state HEEHRA program was fully reserved statewide as of February 2026, so check the state page for any change.

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

Not for new installs. The 25C credit was only available for heat pumps placed into service by December 31, 2025, according to the California Energy Commission. If you installed one in 2025, ask a tax professional how to claim it on that year’s return.

Can I combine several heat pump rebates?

OFten yes. South Coast AQMD says GO ZERO incentives can be combined with other eligible incentives. Each program sets its own rules, so confirm with each one before you apply, and keep your paperwork organized.

Do I need a specific contractor to get a rebate?

For HEEHRA, yes: you must work with a TECH-certified, HEEHRA-trained contractor, and the reservation has to be approved before work starts. LADWP and GO ZERO focus on equipment and a finalized permit. In every case, use a licensed contractor who pulls the permit.

Does a heat pump rebate apply to a heat pump water heater?

Often, yes. LADWP lists rebates up to $2,500 per unit for qualifying heat pump water heaters, and SMUD offers its own amounts. The federal tax credit for these ended with the December 31, 2025 cutoff.

California Heat Pump Rebates: What's Open in 2026