New Hampshire Heat Pump Rebates After the Tax Credit Ended

A heat pump installed in 2026 won’t qualify for the former federal heat pump credit, but other New Hampshire incentives remain available. NHSaves offers utility-funded rebates for qualifying equipment, while the state’s income-qualified HEAR program isn’t yet open as of November 3, 2026.

Understanding that distinction before choosing a system can prevent you from building a project budget around savings that don’t apply.

The Federal Heat Pump Credit Ended for 2026 Installations

The former federal credit doesn’t apply to a heat pump installed during 2026. Public Law 119-21 ended the Section 25C Energy Efficient Home Improvement Credit and the Section 25D Residential Clean Energy Credit for property placed in service after December 31, 2025.

For most heat pump projects, Section 25C was the relevant provision. It covered 30 percent of qualifying air-source heat pump equipment and labor costs, up to $2,000 annually. That tax credit reduced eligible federal income tax liability. It wasn’t a rebate paid by an installer, utility, or state program.

A homeowner whose qualifying system was installed by December 31, 2025 can still claim the credit on a 2025 federal return using IRS Form 5695. A system first installed in 2026 isn’t eligible, regardless of when it was ordered or paid for. Leave the former federal credit out of a 2026 project budget.

NHSaves Offers a Separate Incentive Path in 2026

NHSaves remains active for qualifying New Hampshire heat pump projects in 2026. It’s a utility-funded rebate program, not a federal tax credit, and its rules are separate from the expiration of Section 25C.

Eligible residential electric utility customers may find rebates for qualifying heat pump installations, heat pump water heaters, and other efficiency equipment. These rebates provide a program payment or discount tied to a qualifying project rather than reducing federal income tax liability.

Not every model, customer, or installation automatically qualifies. NHSaves rebate amounts, participating utility requirements, equipment lists, and application steps can change. Confirm the current terms and exact equipment requirements before signing a contract or purchasing a unit.

HEAR Applications Aren’t yet Open in New Hampshire

New Hampshire’s Home Electrification and Appliance Rebates program, often called HEAR, isn’t yet accepting applications as of November 3, 2026. The Energy Saver New Hampshire portal says the program is expected to launch in the coming weeks.

HEAR is federally funded and administered by the state through Energy Saver New Hampshire. Unlike NHSaves, it’s limited to households earning up to 150 percent of area median income, so applicants will need to document household income.

Projects must begin after the program officially launches. Anyone who buys equipment or starts work before that date shouldn’t assume the program will apply retroactively. If a heat pump is needed now, assess the active NHSaves route rather than delaying solely for a program that hasn’t opened.

Four Checks to Make Before Choosing a Heat Pump

Verify incentive eligibility before selecting equipment. These four checks can prevent a project from being designed around an incentive that doesn’t fit the property, household, or installation date:

• Remove the expired federal credit from the budget. A heat pump installed in 2026 isn’t eligible for the former federal incentive.
• Confirm the exact equipment. Ask whether the proposed model meets current NHSaves requirements before purchase, not after installation.
• Check the program sequence. Rebate programs can require a specific order for equipment selection, installation, paperwork, and submission.
• Review other incentive rules. Check whether the New England Heat Pump Accelerator offers a point-of-sale incentive for the proposed cold-climate air-source heat pump and whether current rules allow it to stack with NHSaves.

Cold-climate air-source heat pumps are designed to provide efficient heating during New Hampshire winters, but the right system still depends on the home’s layout, existing heating equipment, electrical capacity, and comfort needs. Don’t select a model based only on an advertised rebate. First confirm that the system suits the building.

Heat pump water heaters require the same review. They have their own equipment requirements and incentive structures, so they shouldn’t be treated as interchangeable with space-heating systems.

Match Available Incentives to the Right System

Incentive research is most useful when it informs the actual project scope. During a heat pump consultation, we review the property, discuss heating and cooling goals, identify suitable equipment categories, and flag the incentive questions that need answers before purchase.

We provide heat pump installation, replacement, repair, and maintenance for residential and commercial customers in Salem, New Hampshire and throughout southern New Hampshire. We review air-source, water-source, and ground-source options, including models designed for the region’s winters.

Before committing to a project, confirm the program’s status, equipment requirements, household eligibility, and timing. A heat pump should suit the property even if an anticipated incentive changes or isn’t available.

If you’re planning heat pump installation or replacement, Cornerstone Services can review qualifying system options and the questions to resolve before scheduling work. Call {f:p:sub:phone} to discuss your project.