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Texas · checked October 21, 2026
Air-source heat pump rebates in Texas
1 program pays toward an air-source heat pump in Texas right now, with 1 offer between them. The largest stated amount is $950 (a maximum), from Austin Energy heat pump rebate. The federal 25C credit for this upgrade ended on December 31, 2025, so the state and utility money below is what is left.
What Texas pays for heat pumps
Austin Energy heat pump rebate Open
Run by Austin Energy · for customers of 1 utility
- $650 (Tier 1: SEER2 15.2, EER2 11.0, HSPF2 7.8), $750 (Tier 2) or $950 (Tier 3: SEER2 17.0, EER2 13.0, HSPF2 9.0) for a heat pump or heat pump mini-split
Conditions on the program page: Installed by a participating contractor, who submits within 90 days; Replacement only, all components replaced; existing system and home at least 10 years old; Systems with electric resistance heating elements do not qualify; Manual J or Austin Energy sizing; post-installation inspection; “Funding is limited and available only to Austin Energy customers on a first-come, first-served basis.”.
Source: Austin Energy: Air conditioning and heat pump rebates (page updated February 24, 2026). Last checked October 21, 2026. Official program page.
Worked example: one Texas 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 |
|---|---|---|---|---|
| Austin Energy | $950 max | $950 max | $950 max | $950 max |
For a household that is not income-qualified, the example comes to $950 at most, made of $950 from Austin Energy heat pumps. None of the open offers has a separate income-qualified amount, so every household gets the same figure.
Who can use these Texas offers
Every household in Texas covered by Austin Energy can apply; the offers are not limited to one utility's territory. 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.
Texas Home Energy Rebates (HOMES and HEAR): Not launched. “Rebates are not currently available.” SECO will set a launch date only after DOE approves the state's plan; in April 2026 it hired APTIM to help design and run the programs. Source: Texas Comptroller SECO: IRA home energy rebates (updated May 19, 2026).
How Texas compares
10 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; California $3,000; Oregon $3,000; Arizona $1,125; 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 Texas: heat pump water heater, home EV charger. 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.