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California · checked October 21, 2026
Air-source heat pump rebates in California
1 program pays toward an air-source heat pump in California right now, with 3 separate offers between them. The largest stated amount is $3,000, from SMUD heat pump HVAC rebates (Variable-stage, gas to electric). These offers are tied to SMUD customers; the other California utilities' own programs have not been read yet. The federal 25C credit for this upgrade ended on December 31, 2025, so the state and utility money below is what is left.
What California pays for heat pumps
SMUD heat pump HVAC rebates Open
Run by Sacramento Municipal Utility District (SMUD) · for customers of 1 utility
- Variable-stage, gas to electric: $3,000
- Two-stage, gas to electric: $2,000 (15.2 SEER2 minimum)
- Electric to electric: $1,000 for a two-stage or variable-stage heat pump replacing an electric system
Conditions on the program page: Installed and submitted by a SMUD Contractor Network contractor; Two-stage (15.2 SEER2 minimum) or variable-stage system; Title 24 via HERS CF3R; mini-splits must serve the whole home; Wi-Fi connected thermostat; Active SMUD account, home individually metered by SMUD; “Gas-to-electric conversion required to qualify for panel upgrade rebates”; Subject to available funding.
Source: SMUD: Heating and cooling rebates. Last checked October 21, 2026. Official program page.
Worked example: one California home
Take a 3-ton air-source system (2 outdoor units) replacing natural gas heat. These are example inputs, not typical prices. Each program's own rule gives the amounts below; where one program has several tiers only the largest one counts, separate programs add up, and a percentage offer with no cost entered is shown at its ceiling.
| Utility | Not income-qualified | Moderate income | Low income | Replacing baseboard |
|---|---|---|---|---|
| Sacramento Municipal Utility District (SMUD) | $3,000 | $3,000 | $3,000 | $1,000 |
For a household that is not income-qualified, the example comes to $3,000, made of $3,000 from SMUD heat pumps (Variable-stage, gas to electric). None of the open offers has a separate income-qualified amount, so every household gets the same figure. Replacing electric baseboard heat instead of natural gas changes the example to $1,000, because a California offer depends on the heat being replaced.
Who can use these California offers
Eligibility follows your electric or gas utility. SMUD heat pumps is open to SMUD customers. Customers of Pacific Gas and Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDG&E) are not covered by any open air-source heat pump offer listed here; check with the utility directly. None of these program pages lists an end date, and each can change or stop while funds last.
Federal credit and state IRA rebates
The Energy Efficient Home Improvement Credit (IRC §25C) paid 30% of cost, up to $2,000 a year (heat pumps, heat pump water heaters, biomass stoves and boilers combined). The IRS page says: “can claim the credit for improvements made through December 31, 2025.” Not allowed for property placed in service after December 31, 2025. Source: IRS: Energy Efficient Home Improvement Credit, 26 U.S.C. §25C, as amended by Public Law 119-21 (July 4, 2025). See what the credit covered and when it ended.
California HEEHRA (the state's IRA HEAR program): Closed to new applications. “As of February 24, 2026, HEEHRA single-family rebates are fully reserved for projects statewide.” Multifamily rebates were fully reserved as of September 1, 2026, and “The program is no longer accepting new reservations.” Source: TECH Clean California: HEEHRA rebates.
How California compares
7 of the other 14 covered states list a larger top amount for heat pumps. Open elsewhere: Massachusetts $16,000; Rhode Island $11,500; Connecticut $10,000; New Hampshire $10,000; Maine $9,000; North Carolina $8,000; Vermont $4,000; Oregon $3,000; Arizona $1,125; Texas $950; Wisconsin $900; Michigan $350; Florida $200. No open, sourced offer is listed in 1 other covered state (Pennsylvania). Compare them on the air-source heat pump rebates by state page.
Other upgrades in California: heat pump water heater, induction range or cooktop, electrical panel upgrade. Background: how rebates stack and the federal credit status.
Rebates are set by each program and can change or close without notice; the program's own page and application decide what is paid. This page is information, not tax, legal or financial advice. Amounts last checked October 21, 2026.