If you’ve been researching heat pump installation costs and keep seeing articles promising a $2,000 federal tax credit or an $8,000 upfront rebate, you need an update. The incentive landscape for California homeowners has changed significantly in the past year, and most of what you’re reading online is outdated.
Here’s the short version: the federal Section 25C tax credit is gone. California’s HEEHRA rebates for single-family homes are fully reserved and waitlisted. TECH Clean California’s single-family HVAC incentives are also fully reserved. What remains actively funded and accessible right now are SCE utility rebates and GoGreen Home Energy Financing for qualifying homeowners.
That doesn’t mean the other programs are permanently dead. Waitlisted applicants get funded first when new money comes in. Phase II programs are being planned. And the programs that are still active can meaningfully reduce your installation costs.
This guide covers every heat pump rebate, tax credit, and incentive program relevant to Los Angeles and Ventura County homeowners in 2026, with honest, current status updates on each one. No outdated promises.
What Happened to the Federal Heat Pump Tax Credit
The Section 25C Energy Efficient Home Improvement Credit offered homeowners up to $2,000 for installing a qualifying air source heat pump. It was created by the Inflation Reduction Act of 2022 and was originally scheduled to run through 2032.
The One Big Beautiful Bill Act, signed into law on July 4, 2025, changed that. Under current IRS guidance, the 25C credit is not allowed for any property placed in service after December 31, 2025. For new heat pump installations in 2026, the federal tax credit is zero.
If you installed a heat pump in 2025 or earlier, you can still claim the credit on your federal tax return for the year of installation using IRS Form 5695. The credit was nonrefundable, meaning it reduced your tax liability but didn’t generate a refund beyond what you owed. The $2,000 heat pump credit was a sub-limit within a $3,200 annual cap for energy-efficient home improvement credits.
For anyone planning a 2026 installation, the federal tax credit path is closed.
HEEHRA Rebates: Up to $8,000, But Currently Waitlisted for Single-Family Homes
The Inflation Reduction Act also created HEEHRA: the Home Electrification and Appliance Rebates program. Unlike the now-dead 25C tax credit, HEEHRA was not repealed by the One Big Beautiful Bill Act. The program still exists. But there’s a timing problem
As of February 24, 2026, California’s HEEHRA Phase I allocation for single-family homes is fully reserved statewide. The program is no longer accepting new income verification applications for single-family projects. New reservation requests are being placed on a waitlist.
Here’s what that means in practice: the $8,000 rebate (for households under 80% AMI) and $4,000 rebate (for households between 80% and 150% AMI) are real programs with real money behind them. But as of right now, that money is committed to projects already in the pipeline. You cannot get a new reservation approved today.
Why it still matters:
Waitlisted projects are first in line if additional funding becomes available. If California receives a supplemental federal allocation or redirects state funds, waitlisted reservations get processed before any new applicants. Getting on the waitlist now could mean you’re positioned for funding when it reopens.
HEEHRA Phase II is expected to be announced by the California Energy Commission at a later date. The details, timing, and funding levels haven’t been confirmed yet, but the program structure is established and the administrative infrastructure exists.
If your household income is under 150% of the Area Median Income for your county, it is still worth asking your installer about HEEHRA waitlist status during your estimate. The program could reopen, and being ready matters.
TECH Clean California: Single-Family HVAC Incentives Are Fully Reserved
TECH Clean California is a state-funded incentive program that pays contractors to replace gas appliances with electric heat pumps. The contractor receives the incentive and passes the savings through to the homeowner’s project cost.
The current status for single-family heat pump HVAC incentives: fully reserved. The most recent single-family HVAC round opened on July 15, 2025, and was nearly subscribed by November 12, 2025. As of November 14, 2025, no new single-family HVAC reservations are being accepted.
Like HEEHRA, this doesn’t mean the program is permanently over. TECH Clean operates on a phased funding model. When a phase is exhausted, the program pauses until the next round launches. New phases have historically opened within months, though timing and funding levels vary.
For homeowners replacing a gas furnace with a heat pump: ask your installer about the current phase status at the time of your estimate. If a new round has opened, the incentive could be available again. Market rate incentives have ranged from $1,000 to $1,500, with higher amounts for equity-qualifying households.
Multifamily TECH Clean incentives operate on a separate budget and may still have availability. Check the TECH Clean California budget report for current status.
What’s Actually Funded and Available Right Now
With 25C dead, HEEHRA waitlisted, and TECH Clean fully reserved for single-family HVAC, two programs remain actively funded and accessible for single-family homeowners in Los Angeles and Ventura County today.
Southern California Edison (SCE) Utility Rebates
SCE offers rebates for qualifying electric heat pump installations. Rebate amounts vary by system efficiency, equipment type, and current program availability. SCE reviews and adjusts rebate values periodically.
SCE rebates are not income-restricted. They’re based on your ZIP code, the equipment you install, and the efficiency rating of the system. Check the SCE website for current heat pump rebate details specific to your location.
This is currently the most accessible cash-value incentive for single-family homeowners in the LA and Ventura County service area.
GoGreen Home Energy Financing
GoGreen Home is a state-administered financing program backed by the California Energy Commission’s Equitable Building Decarbonization Program. It provides below-market interest rates and extended repayment terms (up to 15 years) with no property liens.
For income-qualified homeowners in eligible communities, promotional rates of 0% interest (terms up to 10 years) and 2% interest (terms 10 to 15 years) are available. These are specific promotional rates within the EBDP, not the standard GoGreen rate for all applicants. The project maximum is $30,000.
GoGreen doesn’t reduce the purchase price directly, but 0% financing on a heat pump installation fundamentally changes the affordability math. A homeowner who qualifies for the promotional rate pays nothing in interest over the life of the loan.
SoCalGas: Limited Scope
SoCalGas is a natural gas utility and does not typically offer rebates for fully electric heat pump systems that replace gas furnaces. Their incentive programs generally apply to dual-fuel configurations where the homeowner retains gas backup. If you’re going fully electric, SCE is your relevant utility rebate source.
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How to Stack What’s Available in 2026
The stacking picture is simpler than it was a year ago, and that’s not entirely a bad thing. Fewer moving parts means less confusion.
For any single-family homeowner right now:
You can combine SCE utility rebates with GoGreen Financing on the same installation. The SCE rebate reduces your upfront cost. GoGreen Financing covers the remaining balance at below-market rates. If you qualify for the EBDP promotional rate, the interest cost is zero.
If HEEHRA reopens or TECH Clean launches a new phase:
Additional savings layer on top. A homeowner who qualifies for HEEHRA could receive up to $8,000 at point of sale, then finance any remaining balance through GoGreen. TECH Clean incentives would be applied through your contractor’s quote. These programs are designed to stack.
If you’re on the HEEHRA waitlist:
Do not install your heat pump before your reservation is approved. Waitlisted projects are only eligible for the rebate if the heat pump is installed after the reservation clears. Installing early disqualifies you from the rebate.
The cost of a heat pump installation without any incentives is still a significant investment. But SCE rebates plus GoGreen Financing at 0% means the monthly out-of-pocket cost can be lower than what many homeowners expect. And if waitlisted programs reopen, the total savings picture improves further.
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What Could Change: Programs That May Reopen
The incentive landscape is not static. Programs close and reopen. Here’s what to watch.
HEEHRA Phase II: The California Energy Commission has indicated that Phase II rebate availability will be announced at a later date. No timeline has been confirmed, but the program infrastructure is built and the federal funding mechanism exists. If additional IRA funds are allocated to California or existing funds are redistributed, Phase II could activate.
TECH Clean California new phases: TECH Clean has historically launched new funding phases after previous rounds are fully subscribed. The program has operated continuously since its inception, cycling through multiple phases. A new single-family HVAC round could open in 2026, though timing and incentive amounts are not guaranteed.
Federal legislation: Congress could pass new energy efficiency incentives, reinstate a modified version of 25C, or expand HEEHRA funding. None of this is currently proposed, but the legislative landscape can shift quickly.
What won’t change: SCE utility rebates and GoGreen Financing are independently funded and operate on their own timelines. These are the most stable programs in the current mix.
The practical takeaway: check program status at the time of your estimate, not at the time you start researching. An installer who stays current on incentive availability can tell you exactly what’s funded on the day you’re ready to move forward.
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Heat Pump Rebates and Incentives: FAQs for California Homeowners
Is the federal heat pump tax credit still available in 2026?
No. The Section 25C Energy Efficient Home Improvement Credit was eliminated by the One Big Beautiful Bill Act, signed July 4, 2025. It expired for any system installed after December 31, 2025. If you installed a heat pump in 2025 or earlier, you can still claim the credit on your 2025 tax return.
What heat pump rebates are available in California in 2026?
SCE utility rebates and GoGreen Home Energy Financing are actively funded and accessible. HEEHRA rebates for single-family homes are fully reserved with a waitlist. TECH Clean California single-family HVAC incentives are also fully reserved. Both waitlisted programs could reopen if new funding becomes available.
Is the HEEHRA $8,000 heat pump rebate still available?
HEEHRA Phase I single-family rebates are fully reserved statewide as of February 24, 2026. New applicants are placed on a waitlist. Waitlisted projects are funded first if additional money becomes available. HEEHRA Phase II has been announced but no timeline is confirmed.
Can I still get on the HEEHRA waitlist?
New reservation requests submitted after the program was fully reserved are placed on the waitlist. However, the program is not accepting new income verification applications for single-family projects at this time. Check with your installer or the TECH Clean California website for the latest status.
What is GoGreen Home Energy Financing?
GoGreen Home is a state-backed financing program offering below-market interest rates for qualifying homeowners. Promotional rates of 0% and 2% are available for income-qualified homeowners in eligible EBDP communities. The project maximum is $30,000 with terms up to 15 years and no property liens.
Are SCE heat pump rebates available in my area?
SCE rebate availability varies by ZIP code, equipment type, and system efficiency. Check the SCE website for current rebate details specific to your location. SCE rebates are not income-restricted.
Can I combine SCE rebates with GoGreen Financing?
Yes. SCE utility rebates and GoGreen Financing can be combined on the same installation. If HEEHRA or TECH Clean reopen, those incentives can also stack with SCE and GoGreen.
How do I claim the old federal heat pump tax credit for a 2025 installation?
File IRS Form 5695 (Residential Energy Credits) with your 2025 federal tax return. Keep your installation invoice and the manufacturer’s certification statement. The credit is up to $2,000 and is nonrefundable.
What is the difference between a tax credit and a rebate?
A tax credit reduces your federal tax bill when you file your return. A rebate reduces your cost at or near the time of purchase. With the federal tax credit expired, California heat pump savings in 2026 come primarily through rebates, utility incentives, and financing programs.
Should I wait for HEEHRA to reopen before installing a heat pump?
That depends on your situation. If you’re income-qualifying and willing to wait for an uncertain timeline, getting on the waitlist could pay off. If you need a system now, SCE rebates and GoGreen Financing are available today. Your installer can help you weigh the tradeoffs based on your timeline and budget.
Find Out Exactly What’s Available for Your Home
The incentive landscape is changing faster than most websites can keep up with. The fastest way to get an accurate picture of what’s funded, what’s waitlisted, and what you actually qualify for is to talk to an installer who tracks these programs daily.
Reliable Heating and Air helps Los Angeles and Ventura County homeowners navigate the current incentive landscape during every heat pump installation estimate. We’ll tell you which programs are active, which are waitlisted, what the realistic savings look like right now, and whether waiting for a specific program to reopen makes financial sense for your situation.
