A lot of mini-split marketing still mentions a federal tax credit. Here is the current position from ENERGY STAR.
On this page
What ENERGY STAR says
ENERGY STAR’s air-source heat pump tax credit page says the credit was “effective for products purchased and installed between January 1, 2023, and December 31, 2025,” worth 30% of cost up to $2,000 (ENERGY STAR). Qualifying equipment had to meet the ENERGY STAR Most Efficient or cold-climate requirements.
What that means in 2026
A mini-split purchased and installed in 2026 doesn’t qualify for the 25C credit. If you installed one in 2025, the credit applies to your 2025 tax return. Keep the manufacturer’s certification and your receipts, and talk to a tax professional.
Where else to look
- Your electric utility: many utilities run heat pump rebates.
- State energy offices: some states have their own programs.
- ENERGY STAR’s rebate finder on energystar.gov.
Program terms change often, so confirm eligibility before you buy, and ask whether professional installation is required.
What the credit required, for 2025 installs
| Item | Air-source heat pump credit (as ENERGY STAR described it) |
|---|---|
| Section | 25C, Energy Efficient Home Improvement Credit |
| Rate | 30% of cost |
| Annual cap | $2,000 for heat pumps |
| Equipment | Meeting ENERGY STAR Most Efficient or cold-climate requirements, per ENERGY STAR |
| Form | IRS Form 5695 |
| Window | Purchased and installed January 1, 2023 through December 31, 2025 |
Source: ENERGY STAR and IRS Form 5695. Keep the manufacturer’s certification statement for the exact indoor/outdoor model combination and your itemized invoice.
Why marketing still mentions it
Product pages written in 2023-2025 often say “tax credit eligible.” That described the credit window. For a mini-split installed in 2026, those labels don’t create a federal credit.
Rebates: how to find what’s left
- Utility rebates. Search your electric utility’s site for “heat pump rebate.” Many programs pay per ton or per unit and may require an approved contractor, an AHRI certificate number and a cold-climate listing.
- State programs. State energy offices list their programs; the DSIRE database (dsireusa.org) collects many of them.
- ENERGY STAR rebate finder. Enter your ZIP code on energystar.gov.
- Federal home-energy rebates run by states. Some states run Inflation Reduction Act home-energy rebate programs (HOMES, and HEEHR, which was called HEAR until DOE renamed it in May 2026). Availability, income limits and timing are set by each state and change often. [Status varies by state; check your state energy office.]
What rebate programs usually ask for
- The AHRI certificate for the exact indoor/outdoor combination.
- Proof the unit meets a specific efficiency or cold-climate list.
- Installation by a participating or licensed contractor (DIY installs often don’t qualify).
- Proof of permit or inspection in some areas.
- An application before or within a set time after installation.
If you plan a DIY install, check this first. Per EPA, connecting or disconnecting pre-charged lines on a mini-split requires Section 608 technician certification; see EPA 608 and DIY.
General information, not tax advice.
FAQ
Did any credit replace 25C?
Not that we can confirm from ENERGY STAR’s page as of October 12, 2026. Check IRS guidance or a tax professional.
Does a DIY install matter for rebates?
It can. Some rebate programs require a participating contractor. Read the program rules.
Can I still claim a credit for a 2025 install on an amended return?
Possibly, within the IRS time limits for amended returns, if the system met the requirements. Ask a tax professional.
Do utility rebates count as income?
Tax treatment of utility rebates can depend on the program; ask a tax professional. Some rebates reduce the cost basis for any credit that does apply.
What happened to the HEAR rebates?
They still exist but were renamed and changed. DOE’s Program Notice 26-2, effective May 29, 2026, renamed the Home Electrification and Appliance Rebates program to the High-Efficiency Electric Home Rebate (HEEHR) program, its name in section 50122 of the Inflation Reduction Act. The notice also told launched states to update their programs to the new guidance within three months and told states that hadn’t launched to align with it before launching (DOE Program Notice 26-2, via NASEO). DOE’s program page says the rebates are available in select states and directs you to your state energy office (DOE Home Energy Rebates). The page lists the two programs as HOMES (Home Owner Managing Energy Savings) and HEEHR, and says details on active state, territory and Tribal programs are coming soon.
If my state’s program already launched, did the rules change?
They may have. DOE’s Program Notice 26-2 says launched HEEHR programs must make the required changes within three months of the notice, unless DOE approves more time. Rebate reservations already approved under the old guidance can still be paid, but no new reservations can be approved for projects that don’t fit the new program rules (Program Notice 26-2). Before you sign a contract that counts on a rebate, ask your state energy office:
- Is the program open in your area, and is there a waitlist?
- What income limits and documents apply?
- Must the contractor be enrolled or approved?
- Is the rebate paid to you, or taken off the contractor’s invoice?
- Can you reserve the rebate before the work starts?
Sources
- ENERGY STAR: https://www.energystar.gov/about/federal-tax-credits/air-source-heat-pumps
- IRS Form 5695: https://www.irs.gov/forms-pubs/about-form-5695
- dsireusa.org: https://www.dsireusa.org/