The 2026 rebate map,
without the spin.
The federal heat-pump tax credit was repealed in mid-2025 and doesn't apply to 2026 installs. The state-level rebate pool is alive in some places and exhausted in others. We tell you exactly what you qualify for in your ZIP, not what some out-of-date calculator says you might.
The federal credit?
It's gone for 2026.
Under the Inflation Reduction Act of 2022, the federal §25C credit covered 30% of a heat pump water heater install, capped at $600 a year, and was supposed to run through 2032. In July 2025, the One Big Beautiful Bill Act (OBBA) terminated that credit for any property placed in service after December 31, 2025.
In plain English: if you install a heat pump water heater in 2026 or later, there is no federal tax credit. A lot of calculators online still show the credit. They're wrong. Some installer websites still promise it. Don't trust them.
You can still claim §25C on your taxes if you haven't already. File IRS Form 5695 with your annual return. Talk to your accountant about the $600 cap and how it stacks with other 2024/2025 credits you may claim.
The state-level rebate
varies a lot by where you live.
Congress put $4.275 billion into a separate point-of-sale rebate (HEAR / HEEHRA) for efficient appliances, administered by states. OBBA didn't repeal this — it's still alive. But each state runs its own program, and they're running out at different speeds.
HEAR funds available; up to $1,750 for income-qualified households. Texas in particular looks open through most of 2026.
Rolling out — applications accepted, but enrollment is slower. Get your reservation in early.
California single-family fully reserved 2026-02-24; Colorado Front Range nearly out as of April. The unit economics still work without HEAR — high electric rates carry the savings.
MN, HI, NC are launching HEAR programs in 2026. FL, GA, LA, TN, IN, MO and others have no state HEAR program — utility-only rebates apply, and the math leans on energy savings vs. your old tank.
We re-verify status every two weeks against the DOE state HEAR tracker and DSIRE. The number you see in your Kettle quote is the number we think you'll actually get.
Stack on top of HEAR.
On top of HEAR, your local utility may offer its own rebate. We track the ones that matter.
Austin Energy
$800Bill credit 6-8 weeks post-install. All income tiers eligible. Verified at savings.austinenergy.com (April 2026).
MassSave
$750Instant rebate at supply house — taken at the wholesale price. 2026 program year.
SMUD
$2,500One of the strongest in the country. Stacks even with HEEHRA exhausted.
Energy Trust of Oregon
$800Among the top non-state rebates. Dovetails with OR HEAR.
ConEd / National Grid
$1,000+NYSERDA Clean Heat structure stacks with utility-level.
Pedernales / Bluebonnet
$0 verifiedDifferent territory from Austin Energy — the address determines. As of April 2026 we couldn't verify a published HPWH-specific rebate; we're calling member services to confirm and will update if one exists.
↳ Utility rebate amounts change. We re-verify every 30 days. If the rebate landed in your Kettle quote, that's what we expect — if the utility has already cut the program, we'll catch it.
The honest math, three Austin households.
- Gross install
- $2,934
- TX HEAR rebate
- −$1,750
- Austin Energy
- −$800
- Federal §25C
- $0
Income-qualified for full HEAR + Austin Energy's $800 stack. Net is dominated by labor + permit + the small piece HEAR doesn't cover.
- Gross install
- $2,934
- TX HEAR rebate
- −$1,467
- Austin Energy
- −$800
- Federal §25C
- $0
HEAR pays 50% of project, capped at $1,750. Austin Energy stacks regardless of income.
- Gross install
- $2,934
- TX HEAR rebate
- $0
- Austin Energy
- −$800
- Federal §25C
- $0
No HEAR; just the utility rebate. Still pencils on energy savings, but the case is thinner — we tell you so before you commit.
↳ Gross prices include equipment + labor at partner rates + permit. Numbers are based on a Rheem ProTerra 50 install in 78704 with 240V already present — your specific address may run 5-15% higher or lower.
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