Search results are full of old articles promising a 30% federal heat pump tax credit. Here is the current reality, stated plainly and sourced: that federal credit applied to installs through the end of 2025 and has expired. This guide explains what it was and where to look now.
What the federal 25C credit was
The federal incentive that dominated heat pump marketing was the 25C Energy Efficient Home Improvement Credit. The IRS describes it for 2023 through 2025 as 30% of cost, with heat pumps carrying a separate annual credit limit of $2,000 and no lifetime limit. ENERGY STAR states the same for air-source heat pumps: 30%, up to $2,000, for installations between January 1, 2023 and December 31, 2025. So at its peak the credit could cut $2,000 off a qualifying installation in a single tax year.
It expired after 2025
The important word is expired. Both the IRS and ENERGY STAR bound the credit to installations through December 31, 2025. EnergySage states it directly: the 30% federal tax credit expired after 2025. As of today, that federal heat pump credit is no longer available for new installations. Any current article that presents it as a live discount is out of date. Do not build your budget around a federal credit that has lapsed.
Geothermal followed the same pattern
Ground-source, or geothermal, heat pumps had their own federal credit, and it closed on a similar timeline. ENERGY STAR states the 30% geothermal credit applied to property placed in service before January 1, 2026. As of today that window has also closed. If you are weighing geothermal for its historically strong incentive, treat that credit as historical and verify current law before counting on any federal help.
Where to look now
Federal is not the only source of incentives. Many states and electric utilities run their own heat pump rebate programs that operate independently of the federal credit, and those can still be active. The reliable move is to check your state energy office and your utility's rebate page directly, and to confirm any offer in writing before you sign an installation contract. Because incentive programs change often, verify the current terms at the source rather than trusting a dated cost article, including this one.
Frequently asked questions
Is there still a 30% federal heat pump tax credit?
No. The IRS and ENERGY STAR bound the 25C credit to installs through December 31, 2025, and EnergySage confirms it expired after 2025. It is not available for new installations now.
How much was the credit worth?
The IRS describes it as 30% of cost with a separate annual limit of $2,000 for heat pumps, for 2023 through 2025.
Did geothermal have a credit too?
Yes. ENERGY STAR states the 30% geothermal credit applied to property placed in service before January 1, 2026, so that window has also closed.
Are there any incentives left?
Possibly at the state or utility level. Many run their own rebate programs independent of the federal credit. Check your state energy office and utility, and confirm terms in writing.
Why do so many articles still mention the credit?
Because the credit ran from 2023 through 2025, a lot of published content promotes it. Those articles are now out of date. Verify current incentives at the source.