IC Installed Cost

Federal tax-credit update

The 25C heat-pump tax credit ended after 2025

For property placed in service after December 31, 2025, the 25C credit is not allowed.

This is the current IRS position following Public Law 119-21. A page that still advertises a 2026 25C heat-pump credit is out of date.

What replaced it?

There is no direct one-for-one replacement federal tax credit for a homeowner's 2026 heat-pump installation. DOE Home Energy Rebates—HOMES and HEAR—are administered by states and launch, change and close on different schedules. Check the current state and utility program rather than assuming a federal credit.

Check current rebate programs

Primary sources

Last reviewed July 29, 2026. This page provides public-source information, not tax advice.